Hochwald reports record turnover for 2022
Image: Hochdorf
The Hochwald Group presented strong figures at its delegates meeting on 30 June 2023. Hochwald achieved a turnover of €1.97 billion in 2022, the highest ever in the company’s history. The share of third country exports was also further expanded. The financial year saw the commissioning of the dairy plant in Mechernich, which resulted in higher capital expenditures of €187.5 million. At 53.1 cent/kg, the average milk price for the year was approximately 0.1 cent/kg below the German national figure and will be above average for 2023, the company reports.
The year 2022 was characterised by dramatic ups and downs and these will continue to have an impact in 2023. The combination of a worldwide decline in milk volumes from summer 2021 onwards and the uncertainties resulting from Russia’s war against Ukraine has led to dairy markets experiencing an unprecedented price explosion. From energy and machine parts to animal feed, and food supplies, many areas have been hit hard by inflation, which peaked at over 10%. In Germany, dairy products increased in price by almost 20%, and prices have also risen internationally. This caused the Hochwald Group’s turnover to rise to €1.97 billion for the reporting year. EBITDA amounted to €127.4 million, a significant increase of €19.3 million over the previous year. “Turnover reached a record high last year. Market developments were favourable for products like powder and butter, especially in the first half of the year,” explained Detlef Latka, CEO.
The global economic outlook improved slightly at the beginning of 2023. However, high inflation will subdue growth until well into 2024. Continuing high prices in the EU compared to the global market are leading to an increase in milk volumes for farmers. Based on the sales trend in the first months of the financial year, the company anticipates the turnover for the current year to be below its previous figure. Latka affirmed, “We expect that an above-average price for milk can be paid in 2023.”
Hochwald completed its “Hochwald 2020” strategy last year, and the first half of 2023 has been dedicated to revising the strategy. Its “Prepared for tomorrow” vision will enable the company to face shifting challenges. Business activities will continue to focus on “White Line” products (milk, milk drinks, yogurt and cream) and on increasing the brand’s presence on the international market. Optimising the use of milk fat is an area for improvement.
Anton Streit stepped down as Hochwald Milch eG’s chair of the supervisory board due to his retirement. Streit became a board member in 1992 and had chaired it since 2010. Georg Wilsmann has now been elected as chair of the Hochwald Milch eG supervisory board.