Hochwald reports sales developments
Development of sales at the German dairy group Hochwald was influenced in 2016 by general development on the world markets and in Germany. Sales revenues for Germany’s third largest dairy group decreased by 5.5% to €1,360.9 million (previous year: €1,440.3 million). However, equity capital of the company increased to €171.7 million.
Investments last year amounted to €47 million, in its Bolsward plant for ready to drink products. In addition, investment was made in further expansion of the cheese factory in Huenfeld and the completion of a new plant for demineralized whey powder in Huenfeld and the related sewage treatment plant.
The dairy markets in the EU and Germany have consolidated at the beginning of 2017. While prices for fat continue to rise, the market for skimmed milk powder (protein) remains unchanged.
The focus is now on the implementation of the ‘Hochwald 2020’ strategy at the company.
“Turnover of the Hochwald Group will increase in 2017. We are working hard to implement the strategy ‘Hochwald 2020’, which will sustainably improve the milk price for our cooperative members”, says CEO Detlef Latka.
The strategy ‘Hochwald 2020’ is based on the strengthening of the cooperative model. The goals of social responsibility, technology optimisation, focused internationalisation, portfolio development and organization and governance are an integral part of the new orientation of the Hochwald Group, the company says.
Investments are financed in part by a capital increase in the form of a contribution, which the shareholder’s meeting had decided to collect. It begins with the retention of part of the milk payment supplement for the year 2016.