HOCHDORF Holding Ltd Annual Results 2018
Announcement according to SIX adhoc publication article 53 KR
Hochdorf (pta008/19.03.2019/07:00) - HOCHDORF generated a net sales revenue of CHF 561.0 million in 2018 (-6.6% compared to previous year (PY)). Earnings before interest and taxes (EBIT) amounted to CHF 18.6 million (-56.2% PY) with a net profit of CHF 8.7 million. Although significantly below the record figures of the previous year, the sales and earnings figures are within those forecast by the company in December 2018. The main reasons for the disappointing results are the significantly lower performance of Pharmalys Laboratories SA, the lack of sales in China, delays in the new spray tower line and a worsening of the problems in the Dairy Ingredients division, as well as the one-off effect from the sale of HOCHDORF Baltic Milk UAB.
The HOCHDORF Group processed 661,017 tonnes of milk, cream, whey and milk permeate in 2018 (PY 650,017 tonnes; +1.7%) and sold 154,609 tonnes of product (-18.8% on PY). It achieved a net sales revenue of CHF 561.0 million (PY CHF 600.5 million; -6.6%) and company profits of CHF 8.7 million (PY CHF 40.8 million). The net sales revenue is thus within the range of CHF 540 - 570 million forecast in December 2018. At 3.3%, EBIT as a percentage of production revenue is slightly below the predicted range of 3.5 - 4.0%.
Within the context of the history of the HOCHDORF Group, an EBIT of this size is a reasonably good result, especially considering the additional one-off effect of the sale of HOCHDORF Baltic Milk at CHF 2.9 million. At net profit level, the charge from the sale amounted to a total of around CHF 5.9 million. In addition, operating costs rose sharply to CHF 135.9 million (prev. year CHF 116.4 million; +16.8%).
The main reasons for the disappointing results are the significantly lower performance of Pharmalys Laboratories SA, the lack of sales in China, delays in the new spray tower line and a worsening of the problems in the Dairy Ingredients division.
Last year with high investment total
Earned capital was reduced from CHF 56.0 million to CHF 30.4 million. The considerably lower operating results have a significant impact here. Compared to the previous year, cash flow from operational activities fell from CHF 6.0 million to CHF -81.3 million. The main reason for this is the remaining purchase price payment for Pharmalys. Due to the expansion of business activities, the item "Inventories" in particular increased significantly. Longer payment periods in the MEA region (Middle East Africa) pose a challenge. Nevertheless, the "Receivables" item was reduced overall.