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Hochdorf reports profit up 50%

The Hochdorf Group significantly increased both turnover and revenue in 2014. The group achieved growth of 14.0% with gross sales revenue of CHF 428.7 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) were increased by 50.3% to CHF 27.2 million, resulting in overall net profits of CHF 16.1 million (+166.3%). In the 2014 business […]

The Hochdorf Group significantly increased both turnover and revenue in 2014. The group achieved growth of 14.0% with gross sales revenue of CHF 428.7 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) were increased by 50.3% to CHF 27.2 million, resulting in overall net profits of CHF 16.1 million (+166.3%).

In the 2014 business year, the Hochdorf Group sold 99,155 tonnes of product (excluding milk trade business in Lithuania +8.1% compared to the previous year) and achieved a gross sales revenue of 428.7 million (previous year CHF 376.1 million; +14.0%). The main drivers of this upward trend are the high growth in the area of infant formula, high milk prices, which were largely transferred on to the market, and good business performance in Lithuania. The plants were operating at close to capacity all year round and the group managed to process 507.0 million kg of milk, whey, milk permeate and buttermilk (+11.5%). At the site in Lithuania, 26.7 million kg more milk and whey protein was processed than in the previous year (+38.5%). In its Swiss plants, Hochdorf dried 25.6 million kg more liquids than in 2013 (+6.6%).

There was a percentage increase in gross profits to 24.7% (previous year 23.7%). However the nominal increase in the gross profit to CHF 105.2 million (previous year 89.2 million) is even more significant, the company said. Hochdorf recorded higher operating costs than in the previous year, both in terms of personnel costs and for other operating costs. This increase can be explained by high capacity utilisation, additional staffing and the improved results. In terms of EBITDA, Hochdorf achieved a record result of CHF 27.2 million (previous year 18.1 million). The EBIT result was CHF 20.0 million (previous year 10.3 million) and net profits were CHF 16.1 million (previous year 6.1 million).

Positive factors from all three business areas contributed to the results. The high milk prices were largely transferred to the market in the Dairy Ingredients business division. No amortisations were necessary despite the difficult circumstances surrounding the “Schoggi law”. The Hochdorf Group again increased capacity and optimised its product range, as well as improving margins. In Cereals & Ingredients, the product range and portfolio streamlining continued.

“It was an eventful and groundbreaking year,” said CEO Dr Thomas Eisenring. “We have shown that Hochdorf can achieve sustained success by once again improving our results significantly compared to 2013. We have placed important markers for the future with our two acquisitions in Germany.”
The acquisition of Marbacher Ölmühle GmbH in Marbach, Germany and the 60 per cent holding in Uckermärker Milch GmbH as well as the 26 per cent holding in Ostmilch Handels GmbH were only completed at the end of the year. The results for these companies are not therefore included in the income statement for 2014. However, they do appear in the balance sheet as of 31.12.2014.