Increased turnover and profits

18.08.2011 14:18

Half-Year Results 2011

Hochdorf, 19 August 2011 - The HOCHDORF Group processed 256.1 million kg of milk and whey in the first six months of the year. At CHF 179.9 million, the gross turnover is around 12 per cent higher than the previous year’s value of CHF 160.6 million. The operational result is positive on the EBIT level at CHF 2.4 million and the pure profit at concern level stands at CHF 14.9 million.

The HOCHDORF Group processed more milk and whey than ever before in the months between January and June, with a record of 256.1 million kg of milk (+11.9% compared to the prev. year). The biggest increases in milk and whey production were at the Swiss sites at Hochdorf and Sulgen.

A positive overall result
There were slight increases in the amounts produced and processed. In the first six months of the year, the Group produced 50,058 tons in volume (prev. year 49,071 t) and sold 48,772 tons of products (prev. year 48,712 t). These sales gave HOCHDORF a gross turnover of CHF 179.9 million (+12.0% compared to the prev. year). The EBITDA and the EBIT are lower than the previous year’s values. The Group produced an EBITDA of CHF 8.7 million (-17.7% compared to the prev. year's CHF 10.6 million). The EBIT was 2.4 million, 51.7% lower than the previous year’s value (CHF 5.0 million). At CHF 15.2 million, the ordinary result is significantly higher than the previous year’s value of CHF 2.8 million. This value was influenced by the sale of HOCHDORF Nutribake AG as of 1 April 2011. The Group has achieved a company result at concern level of CHF 14.9 million (prev. year CHF 2.8 million).

At CHF 5.0 million (2.8% of the net sales revenue), the “earned capital” cash flow is 46% lower than the previous year’s value of CHF 9.3 million. The sale of Nutribake and the issue of a conversion loan meant, that liquid assets reached a value of CHF 35.3 million. This is matched by values for "cash flow from investment activities" (CHF 14.3 million) and “cash flow from financing activities” (CHF 30.0 million), higher than the previous year’s values (CHF -12.3 million and CHF 5.2 million).

Higher equity
The Group’s balance sheet total increased since the beginning of the year by around 15% to CHF 292.6 million (CHF 254.5 million (31.12.2010)). The Group held equity of over CHF 141 million (48.2%) as of 30 June 2011. This means that there was a relative decrease in the equity share from 51.0% (31.12.2010) to 48.2%. Since the beginning of the year, the equity has increased in absolute terms by CHF 11.1 million.

The operational result is offset by exceptional costs totalling around CHF 5.0 million. CHF 4.0 million of this is attributable to unsatisfactory production in the area of infant formula, the strong Swiss franc, the costs involved in switching to the SIX Swiss Exchange and in issuing the conversion loan, as well as other consultancy expenses. A margin loss is also included in the CHF 4.0 million because the higher milk procurement prices could only be passed on to our industrial and international customers later, if at all. A variety of factors led to stock depreciation of approximately CHF 1.0 million.

Outlook
As announced in the press release of 22 June 2011, the positive start to the year was put into perspective by the months of April and May. Imminent projects and the planned reduction in inventory mean we expect company profits for the entire business year of 2011 that are in the region of the CHF 13 to 17 million, as previously intimated.

HOCHDORF Group key figures as of 30.06.2011 (consolidated and unchecked)

CHF (thousands)01.01.11 – 30.06.1101.01.10 – 30.06.10Change
Processed milk, cream and whey amounts in
kg (millions)
256.1228.8+11.9%
Quantities produced (including cream) in tons50'05849'071+2.0%
Quantities sold (tons)48'77248'712+0.1%

Gross sales revenue

179'870

160'642

+12.0%

         Export share30.3%19.4%
Earnings before interest, taxes, depreciation and amortization (EBITDA)8'73310'605
-17.7%
          as % of production revenue4.6%6.4
Earnings before interest and taxes (EBIT)2'3924'957
-51.7%
          as % of production revenue1.3%3.0
Profit from ordinary activities after tax15'1912'817+439.3%
Net profit14'8602'758+438.7%
Staffing levels at 30.06.354379
-6.6%
Gross turnover per employee508424+19.9%
30.06.201131.12.2010
Balance sheet total292'626254'537+15.0%

          of which equity capital

141'016129'855+8.6%
          as a % of the balance sheet total48.251.0

Contact:

Dr. Christoph Hug, Corporate Communications, HOCHDORF group, Tel: +41 (0)41 914 65 62 / +41 (0)79 859 19 23, christoph.hug(at)hochdorf.com

The HOCHDORF Group, with headquarters in the town of Hochdorf in the canton of Lucerne, is one of Switzerland’s leading companies in the food sector and in 2010 generated consolidated gross sales of CHF 351.5 million (CHF 346.3 million in 2009) with a workforce of 377 (status as at: 31.12.2010) at three sites (Hochdorf/LU; Sulgen/TG; Medeikiai/ Lithuania). HOCHDORF develops, produces and markets functional ingredients as well as dairy and cereal-based speciality products for the food industry and the trade worldwide. HOCHDORF’s products, which are extracted from natural raw materials such as milk, or wheat germs, have been making a contribution towards the health and well-being of infants right up to senior citizens since 1895. The products are sold in approx. 80 countries.