Hochwald reports growth through investment
Hochwald has shown growth for the fiscal year 2013 and the beginning of 2014; both milk processing and revenues have increased. New collaborations with European dairies are developing positively and are being expanded, the company says.
The German dairy market showed a better development in 2013 than predicted by experts at the beginning of the year. In the reporting year, Hochwald achieved revenues of €1.5 billion (+19.3%) – consolidated with the revenues from the joint venture with AHL – and the export department generated sales of roughly €474 million.
In 2013, Hochwald invested around €47 million and another €90 million will follow in 2014 and 2015. According to the schedule, the largest investment of the company will be finalised at the beginning of 2015. The plant for the demineralisation and drying of whey in Hünfeld, Hesse, will go into operation next year. The group’s annual net profit rose from €1.2 million in the previous year to €2.8 million.
Prospects for the second half of the year are equally good, and the company anticipates a positive milk price development in the current year. In the first five months of 2014, the turnover of the Hochwald Group increased by 13.8% as a result of quantities and prices; the export share accounted for 44.5% of the total turnover.
In the previous two years Hochwald has taken an active role in the ongoing structure development of the European dairy industry, by means of collaborations and joint ventures. In 2014, the co-operation with the Belgian dairy company Solarec Recogne was expanded. Hochwald is a shareholder in Solarec and supplies 50 million kg of raw milk per annum to Recogne, which is processed into milk powder and butter and then marketed. In September 2013, the subsidiary Hochwald Foods DMCC in Dubai started its operative business. In 2014, this was transferred to Hochwald DOC DMCC, the subsidiary of DOC Kaas and Hochwald. The operative sales business for the Arabian peninsula and North Africa has also launched successfully.
