First half of 2019 – summary
The HOCHDORF Group is in a serious crisis. The company performed significantly worse than expected in the reporting period, which was mainly due to the negative performance of its 51% subsidiary Pharmalys, resulting in a massive drop in profits.
The Group processed 374.8 million kg of milk, whey, cream etc. (PY: 365.3 million kg) and sold 86,661 tonnes of products (PY: 83,374 tonnes). Net operating sales revenue fell by CHF 35.2 million to CHF 242.9 million (PY: CHF 281.6 million), as a result of debtor provisions, mainly for Pharmalys. Due to increased depreciation and amortisation and provisions that became necessary, this resulted in an EBIT of CHF –52.4 million and company losses of CHF –63.6 million.
Looking ahead, following the reassessment of the risks and opportunities in the first half of the year, the Group will concentrate on the further development of the high-growth Baby Care business, while at the same time examining all strategic options for Pharmalys, and on the further optimisation of the Dairy Ingredients Division.
HOCHDORF is facing major challenges. This makes it difficult to set an end-of-year forecast. The second semester is usually stronger for seasonal reasons. In the current financial year, the degree and pace of implementation of the measures taken will have a significant impact on sales revenues, the operating result and the net result.