Ad-hoc | 1 February 2011 17:30
HOCHDORF Holding AG / Key word(s): Development of Sales
01.02.2011 17:30
Release of an ad hoc announcement pursuant to Art. 72 KR
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The HOCHDORF Group processed 325.9 million kg of milk in Switzerland in the
past business year - the second largest amount in its history. HOCHDORF
surpassed the previous year's amount of 320.4 million kg by 1.7%. The
consolidated gross turn¬over amounts to CHF 351.7 million despite lower
milk prices - and therefore lower product prices (previous year: CHF 347.6
million; +1.2%). The Group has succeeded in turning the situation around,
which means that an unchanged dividend is the very least shareholders can
expect.
The HOCHDORF Group produced 325.9 million kg of processed milk in the past
year - the second highest milk processing result in the company's 115-year
history. HOCHDORF only produced more milk in Switzerland in 2008 (360
million kg) in what was a particularly strong year for milk production.
With 13 million kg of processed whey and the amount of milk produced by the
Lithuanian plant (71.6 million kg), the HOCHDORF-based Group achieved
record figures for processed liquid quantities at 410.5 million kg.
Significant growth in strategically important areas
In the past business year, the HOCHDORF Group achieved a consolidated gross
turnover of CHF 351.7 million (not audited; previous year: CHF 347.6
million). This represents a small increase in gross turnover of +1.2%. The
Lithuania plant is already fully integrated in the figures because HOCHDORF
will take it over entirely in the medium term. The higher turnover was
achieved despite lower average milk prices and therefore lower product
prices. The previous year's turnover also includes the turnover shares from
the divested business areas amounting to CHF 13.5 million.
The Group's sales volume (non-consolidated) was 94,657 tonnes, even
surpassing the record value from the previous year (82,589; +14.6%). This
volume growth was achieved with constant warehouse quantities. The
comparative value from 2009 was also achieved due to huge warehouse sales.
The HOCHDORF Group also attained substantial growth in strategically
important business areas. It sold 1,828 tonnes (+37%) more infant formula
and 1,100 tonnes (+8.9%) more full milk powder for the Swiss chocolate
industry.
An intensive business year
2010 was a very challenging business year, both economically and
politically. The strong Swiss franc hindered the export of quality Swiss
foodstuffs such as infant formula, chocolate or biscuits. The 'Schoggi' law
contributions made available by the Swiss government to offset the handicap
posed by domestic raw material prices proved far from adequate for the
purpose. The HOCHDORF Group estimates its milk quantity exported in the
form of infant formula, chocolate or biscuits at approximately 110 million
kg. This is a considerable quantity of milk that would be lost to milk
producers if the food¬stuffs-processing industry were to make use of the
active inward processing arrangements. Fortunately an agreement was reached
within the industry to offset the missing contributions from the 'Schoggi'
law.
The HOCHDORF Group achieved its own internal capacity target for the new,
ultra-modern spray tower line 8 in Sulgen. This involved a huge effort in
the areas of production and marketing. The plant has already been running
as a three-shift operation since December 2010. The plant volume will
virtually double in 2011, which is what is required to achieve the target
growth in the area of powdered infant milk formula.
Growth abroad as well
At the beginning of 2010 the HOCHDORF Group assumed an interest in the MGL
Baltija UAB milk plant in Medeikiai, Lithuania. This plant provides the
HOCHDORF Group with a foothold in the EU and with direct access to the east
European market. The Group increased its share from 30% to 45% as of
January 1, 2011 and will take over the milk plant completely in the medium
term.
Projection for 2011
The optimisation and restructuring measures initiated by the HOCHDORF Group
in 2009 and consistently pursued in 2010 have proved successful - and the
business has been turned around. The Group is therefore expecting positive
financial results for 2010. 'With the investments we have undertaken, along
with process improvements and divestments, we can look forward to the
future proactively and with confidence,' says Damian Henzi, CEO of the
HOCHDORF Group. Henzi adds: 'The HOCHDORF Group must and will retain its
focus on achieving EU cost compatibility and internationalisation.' The
rising milk powder prices on the world market also give grounds for
optimism in 2011. And some product prices were also adjusted upwards.
Important dates
Annual Media Conference: Wednesday April 13, 2011 in Hochdorf
General Meeting: Friday May 13, 2011 in Hochdorf
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Information and Explaination of the Issuer to this News:
The HOCHDORF Group, based in Hochdorf, achieved a consolidated gross
turnover of CHF 351.7 million in 2010. It is one of the leading foodstuff
companies in Switzerland, employing 317 full-time staff as of 31.12.10.
Made from natural ingredients such as milk and wheat germ, HOCHDORF
products have been contributing to our health and wellbeing since 1895 -
from babies to senior citizens. Our customers include the food industry,
the retail industry, bakeries and the catering trade. Our products are sold
in over 80 countries. The HOCHDORF Group's shares are traded on the Berne
stock exchange and are distributed among approximately 1,200
shareholders.
01.02.2011 News transmitted by EquityStory AG.
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Language: English
Company: HOCHDORF Holding AG
Siedereistrasse 9
6281 Hochdorf
Schweiz
Phone: +41 41 914 65 65
Fax: +41 41 914 66 66
E-mail: hochdorf@hochdorf.com
Internet: www.hochdorf.com
ISIN: CH0024666528
Swiss Security Number:
Listed: BX
End of Announcement EquityStory News-Service
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