HOCHDORF Holding AG

EQS-Adhoc: HOCHDORF Holding Ltd: Higher earnings thanks to Pharmalys' participation


EQS Group-Ad-hoc: HOCHDORF Holding AG / Key word(s): Half Year Results
HOCHDORF Holding Ltd: Higher earnings thanks to Pharmalys' participation

17-Aug-2017 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
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HOCHDORF Group press release: 2017 half-year results

Higher earnings thanks to Pharmalys' participation

Hochdorf, 17 August 2017-In the first half of 2017, the HOCHDORF Group generated
gross sales revenue of CHF 312.1 million (previous year: CHF 278.4 million;
+12.1%). Group-wide EBITDA rose by 17.6% to CHF 21.7 million (previous year: CHF
18.4 million) with the corresponding EBIT increasing by 20.4% to CHF 15.8
million (previous year: CHF 13.1 million). Pharmalys Laboratories SA is
primarily responsible for these higher earnings. The sales target for the entire
2017 business year is being adjusted.

At 377.6 million kg, the HOCHDORF Group processed significantly less milk, whey,
cream and permeate (liquid volume) than in the previous year (415.9 million kg;
-9.2%). Foreign milk factories are the main reason for this sharp decline. In
Switzerland, the assumed liquid volume remained the same as the previous year,
although less milk was produced. The difficult situation on the Swiss milk
market also put a strain on results from the traditional milk business. The
product volume sold also declined from the previous year's level by 10.9% to
111,948 tons (previous year: 125,604 tons).

Higher earnings thanks to Pharmalys' participation
Despite lower sales volumes, gross sales revenue amounted to CHF 312.1 million
and is 12.1% higher than the comparable figure for 2016 (CHF 278.4 million).
Gross profit increased to CHF 79.3 million (previous year: CHF 70.7 million;
+12.1%). The group-wide EBITDA increased to CHF 21.7 million (previous year: CHF
18.4 million; +17.6%) with the corresponding EBIT increasing to CHF 15.8 million
(previous year: 13.1 million; +20.4%).

Pharmalys Laboratories SA is primarily responsible for these higher earnings.
The earnings of HOCHDORF Swiss Nutrition Ltd suffered from lower export
subsidies compared to the previous year, lower production volumes for infant
formula and margin losses, above all in the Dairy Ingredients Division. The
lower production volume of infant formula resulted among other things from the
reduction of delivery periods from six to just three months and the temporary
discontinuation of volumes in Egypt and Libya. However, the order books for the
second half of the year are now once again well filled and we anticipate high
capacity utilisation. Additional measures for improving results have been taken.

Dairy Ingredients Division
Thanks to higher prices in the first half of 2017, the Dairy Ingredients
Division generated a gross sales revenue of CHF 216.1 million (previous year:
CHF 204.3 million; +5.8%). The amount of processed liquid volume was reduced by
roughly 9% to 377.6 million kg (previous year: 415.9 million kg). While
reductions occurred in Prenzlau/Germany and in Medeikiai/Lithuania, the liquid
volume in Switzerland was maintained at the previous year's level.

At HOCHDORF Swiss Nutrition Ltd, the first six months of the year were
characterised by low milk production. Thanks to the significantly increased
processing of whey, capacity utilisation remained at a very high level. Reduced
"Schoggi Law" contributions, margin losses and too little B milk for export
products influenced earnings. For this reason, a project was launched for
improving profitability: price increases, portfolio adjustments and cost savings
will be used to significantly improve results.

The record high butter prices were an advantage for Uckermärker Milch GmbH to
the extent that the butter was produced from milk from direct suppliers. The
purchase of milk fat at competitive prices was very challenging. The
reorganisation with Dr Peter Pfeilschifter as on-site managing director showed
rapid success. Some bad news came in the form of the closing of the curd
production plant as of 31 October 2017 as announced on July.

HOCHDORF Baltic Milk UAB is being negatively impacted by high milk prices, which
cannot be transferred to the market, and a weak protein market. Under these
conditions, the processed milk quantities were reduced as much as possible and
production processes were optimised.

Baby Care Division
The integration of the Pharmalys Group increased the consolidated gross sales
revenue in the Baby Care Division by 36.5% to CHF 82.2 million (previous year:
CHF 60.2 million). As expected, the Pharmalys Group was able to increase its
turnover and earnings figures in the first half of the year. By contrast, due to
temporarily lower quantities in Egypt and Libya as well as significantly shorter
delivery periods, the volumes produced and sold in the Swiss Baby Care business
have declined.

Cereals & Ingredients Division
With new and existing products, the Cereals & Ingredients Division generated
gross sales revenue of CHF 13.6 million, which corresponds to the previous
year's figure. One highlight was the profitable growth of Marbacher Ölmühle
GmbH. This growth allowed for additional production capacities, which were put
into operation in the spring.

Outlook
"In the second half of the year, we anticipate slightly higher milk prices
compared to the previous year, with correspondingly high product prices",
explains Thomas Eisenring, CEO of the HOCHDORF Group. HOCHDORF does not
anticipate being able to make up for the shortfall in sales from the first half
of the year and expects a demanding market for milk mass products. For this
reason, the company is lowering its projected annual gross sales revenue from
between CHF 635 and 670 million to CHF 610 and 650 million.

At the middle of the year, the percentage of EBIT relative to production revenue
is 5.0% and thus under the communicated annual target range of 6.1 to 6.6%. Due
to well filled order books in the Baby Care Division and measures taken to
improve earning figures, the percentage EBIT forecast is not being changed.

Key figures of the HOCHDORF Group (consolidated and unaudited)

TCHF (unless otherwise stated)                                          01.01.17
- 30.06.17 01.01.16 - 30.06.16 Change

Processed milk, whey, cream and permeate (liquid volume) in kg millions 377.6
415.9               -9.2%

Quantity sold, in tons                                                  111,948
125,604             -10.9%

Gross sales revenue                                                     312,110
278,401             +12.1%

Earnings before interest, tax, depreciation and amortisation (EBITDA)   21,697
18,447              +17.6%

as % of production revenue                                              6.9%
6.3%                 

Earnings before interest and taxes (EBIT)                               15,780
13,109              +20.4%

as % of production revenue                                              5.0%
4.5%                 

Net profit                                                              12,827
11,039              +16.2%

as % of production revenue                                              4.1%
3.8%                 

                                                                         
                     

Workforce on 30 June                                                    686
614                 +11.7%

                                                                         
                     

 
30.06.2017          31.12.2016           

Total assets                                                            473,792
425,474              

thereof shareholders' equity                                            268,911
45,805               

as % of total assets                                                    56.8%
10.8%                

                                                                         
                     

Share Information
30.06.2017          30.06.2016           

Share price (in CHF)                                                    305.75
183.80              +66.3%
 
The detailed shareholder report can be found online atreport.hochdorf.com.

Additional features:


Document:http://n.eqs.com/c/fncls.ssp?u=BLNTRDFBWP
Document title: HOCHDORF Group press release: 2017 half-year results
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End of ad hoc announcement------------------------------------------------------
--------------------------Information and Explanation of the Issuer to this
News:


The HOCHDORF Group, based in Hochdorf, achieved a consolidated gross sales
revenue of CHF 551.5 million in 2016. It is one of the leading foodstuff
companies in Switzerland, employing 630 staff as of 31.12.2016. Made from
natural ingredients such as milk, wheat germ and oil seeds, HOCHDORF products
have been contributing to our health and wellbeing since 1895 - from babies to
senior citizens. Its customers include the food industry and the wholesale and
retail sectors. Its products are sold in over 90 countries. The shares are
traded on the SIX Swiss Exchange in Zurich (ISIN CH0024666528).

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Language: English

Company:  HOCHDORF Holding AG

          Siedereistrasse 9

          6281 Hochdorf

          Switzerland

Phone:    +41 41 914 65 65

Fax:      +41 41 914 66 66

E-mail:hochdorf@hochdorf.com

Internet: www.hochdorf.com

ISIN:     CH0024666528

Listed:   SIX Swiss Exchange



 

End of Announcement EQS Group News Service

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601943  17-Aug-2017 CET/CEST
 



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