Hochdorf reports a dip in sales
The Hochdorf Group generated net sales of CHF 281.6 million (€249.4m) in the first half of this year, which is 6.9% down on the previous year’s net sales of CHF302.4 million. Various temporary or one-time effects reduced the half-year result. These include the high start-up costs and schedule delays of the new spray tower line and the lack of sales in China, which also had a significant negative impact on the result of Pharmalys Laboratories.
In the first half of the year, the Hochdorf Group processed 365.3 million kg of milk, whey, cream and buttermilk, a decrease from the previous year of 377.6 million kg. The main reason for the slight decline is the further reduction in milk volumes at the Lithuania plant and its sale at the end of May.
As a result of the streamlining of the product portfolio, the product volume sold decreased by -25.5% to 83,374 tons (previous year 111,948 tons).
By contrast, net sales fell by only -6.9% to CHF 281.6 million, while gross profit increased slightly compared to the previous year to CHF82 million (previous year: 79.3 million).
However, its Dairy Ingredients business achieved lower net sales of CHF188.2 million, a 13.1% drop. (previous year CHF 216.6 million). The lower sales are due to the continuing price distortions between the milk fat and milk protein valuation in the international milk market, according to the company.
The milk, cream, whey and permeate volume processed in the first half of the year fell by a little more than 3% to 365.3 million kg.
“Due to the production and entered sales orders, we expect a very good result in the second half of the year. Nevertheless, we will not be able to fully recoup the half-year result below expectations,” explains Thomas Eisenring, CEO of the Hochdorf Group.
Therefore Hochdorf has now corrected the forecast for the financial year 2018 slightly downwards. The group now expects net sales in the range of CHF570-600 million and a percentage EBIT of 5.8 to 6.5% compared to the production proceeds.