The Baby Care Division achieved net sales revenue of CHF 168.8 million in 2017 (PY: CHF 123.0 million; +37.2%). This jump in growth can be attributed to the majority shareholding in the Pharmalys companies. The gross sales revenue is within the range of CHF 170 – 180 million predicted in the 2016 Annual Report.

As predicted in the interim report, the lines for the production of infant formula in the second half-year were well to very well utilised, and were at the previous year’s high level. As stated, the company was unable to make up for the loss of turnover in the first six months that was mentioned in the interim report.

Investment in the new production and filling lines at the Sulgen site progressed with a high degree of intensity. Our efforts to acquire new customers to utilise the new capacities were also successful. When marketing infant formula, it is important to bear in mind the country-specific and sometimes complex laws and regulations. Nevertheless, some initial production has already been arranged for 2018. Further promising talks are also being held. Acquisition of new customers is one of our focal points in the current business year.

The new Chinese registration regulation for brands will lead to a significant reduction in the number of brand-name products available on the market. Accordingly, HOCHDORF will also be able to produce fewer brands for the Chinese market. With the focus on fewer brands, we are however expecting to supply significantly larger volumes in the medium term.

In the past business year, Primalac products were launched in Cameroon and Algeria. Swisslac infant formula is now available in Syria, Bahrain and Lebanon. Besides the main business of milk-based infant formula, cereals were also introduced under the Primalac brand in Iraq, Lebanon, Mauritania, West Africa and Saudi Arabia.

Cooperation with HOCHDORF was intensified in 2017. A tremendous amount of work has been done in the area of IT systems and administration, and the majority of the integration can now be regarded as complete.

Towards the end of the first half-year, the new production and filling capacities were available for commercial production. The acquisition of new customers and further market penetration into various markets of the Pharmalys Group will form the focus of marketing and sales in the current business year. As a result of the newly created capacities and sales efforts, we expect higher net sales revenue in 2018 compared with the previous year, in the range of CHF 220 – 230 million.

HOCHDORF Swiss Nutrition Ltd pressed ahead with the development of new EU formulations in 2017. The aim is to introduce the new products on the market in the second half of 2018, both for the Pharmalys Group and for some of our other customers.

Pharmalys plans to enter various markets with the Primalac and Swisslac brands, which are now very well-known in Africa. Confidence in the two brands on the part of doctors, pharmacists and consumers is growing. For this reason, it makes sense to expand the product range.

Some joint marketing by HOCHDORF and Pharmalys is also planned in the current business year. Hence, in May 2018, we shall be presenting our products for the first time at our booth at ESPGHAN (European Society for Paediatric Gastroenterology Hepatology and Nutrition), a congress for paediatricians. This year, the congress is being held in Geneva, Switzerland. We aim to use this opportunity to raise awareness of Pharmalys products with paediatricians.

We offer our customers a broad Swiss-made product range of high-quality food for babies and children. We also support our partners with services such as sales and marketing training, as requested. The Baby Care Division is international in structure and is planning further growth in Asia, the Middle East, Africa and Latin America. In the medium term, we want to move closer to the consumer in the value chain with our own brands in selected markets. We are optimising our production capacity and expanding it in line with demand. Pharmalys Laboratories SA markets premium infant formula and other products under the Primalac and Swisslac brands.

Milk products for pregnant women, infants and young children (made in Switzerland).

* Gross sales revenue (in TCHF)