Hochdorf today (17 August) reported M&A-driven improvement in half-year sales and profits – but the Switzerland-based dairy and infant formula supplier lowered its target for annual sales amid pressure on volumes in the first half and on the prospect of “demanding” trading conditions.

The company posted a 12.1% increase in gross revenue to CHF312.1m (US$323.2m). EBIT was up 20.4% at CHF15.8m. Net profit increased 16.2% to CHF12.8m.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Hochdorf pointed to its acquisition of a controlling stake in African infant formula manufacturer Pharmalys Laboratories for the higher earnings.

However, the group said its first-half sales volumes were lower as it processed “significantly less” milk, whey, cream and permeate than in the first half of 2016. The company also cited “the difficult situation on the Swiss milk market”, which it said had “also put a strain on results” from its traditional milk business.

CEO Thomas Eisenring said: “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 CHF635m and CHF670m to CHF610m and CHF650m.”

See Also:

Hochdorf acknowledged its first-half results included an EBIT percentage relative to production revenue of 5%, under its annual target range of 6.1-6.6%. However, the company said it was not changing its forecast for full-year EBIT “due to well-filled order books in the baby care division and measures taken to improve earning figures”.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.