Hochdorf looks ahead as debt decreases
Image: Hochdorf Group
There’s a feeling of relief at Switzerland’s Hochdorf Group. At the start of last year, the balance sheet continued to be burdened by high debt of around CHF100 million. In 2021, its financial recovery was helped with the receipt of a repayment of CHF30 million from Pharmalys Laboratories and CHF50.2 million received from the sale of a Hochdorf site, so net debt fell significantly to CHF32.7 million.
In 2021 sales of CHF303.5 million were generated, 1% below the previous year’s figure, but operating activities resulted in a negative operating result due to higher milk prices and lower sales in the Baby Care division. The consolidated profit amounted to CHF2.6 million, compared with a loss of CHF70.3 million in 2020.
Hochdorf wants to transform in the coming years and develop into a Swiss competence brand for technologically ambitious, functional speciality foods in line with the new strategy, it says. The company wants to reduce the cost dependency on the raw material of milk, which is experiencing increased pressure on volume in Switzerland. Hochdorf is responding to this trend and in the last 12 months has brought several newly-developed finished products and semi-finished products to market in the area of smart nutrition.
By consistently implementing the strategy agreed in 2021 by the group management and its new leadership, the company is focusing on increasing margins and promoting innovation. The related streamlining of the range and evaluation of the traditional business areas is taking place in the first half year of 2022.
Switzerland’s largest dairy grop Emmi and Hochdorf have agreed to cooperate in the area of speciality powders, for both milk-based and vegan products as of March. Hochdorf is producing semi-finished and finished products with special requirements in powder form for Emmi. This operational cooperation is contractually structured as contract manufacturing.