HOCHDORF Holding AG / Key word(s): Development of Sales
01.02.2011 17:30

Release of an ad hoc announcement pursuant to Art. 72 KR

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The HOCHDORF Group processed 325.9 million kg of milk in Switzerland in the past business year - the second largest amount in its history. HOCHDORF surpassed the previous year's amount of 320.4 million kg by 1.7%. The consolidated gross turn¬over amounts to CHF 351.7 million despite lower milk prices - and therefore lower product prices (previous year: CHF 347.6 million; +1.2%). The Group has succeeded in turning the situation around, which means that an unchanged dividend is the very least shareholders can expect.

The HOCHDORF Group produced 325.9 million kg of processed milk in the past year - the second highest milk processing result in the company's 115-year history. HOCHDORF only produced more milk in Switzerland in 2008 (360 million kg) in what was a particularly strong year for milk production. With 13 million kg of processed whey and the amount of milk produced by the Lithuanian plant (71.6 million kg), the HOCHDORF-based Group achieved record figures for processed liquid quantities at 410.5 million kg.
Significant growth in strategically important areas In the past business year, the HOCHDORF Group achieved a consolidated gross turnover of CHF 351.7 million (not audited; previous year: CHF 347.6 million). This represents a small increase in gross turnover of +1.2%. The Lithuania plant is already fully integrated in the figures because HOCHDORF will take it over entirely in the medium term. The higher turnover was achieved despite lower average milk prices and therefore lower product prices. The previous year's turnover also includes the turnover shares from the divested business areas amounting to CHF 13.5 million.
The Group's sales volume (non-consolidated) was 94,657 tonnes, even surpassing the record value from the previous year (82,589; +14.6%). This volume growth was achieved with constant warehouse quantities. The comparative value from 2009 was also achieved due to huge warehouse sales. The HOCHDORF Group also attained substantial growth in strategically important business areas. It sold 1,828 tonnes (+37%) more infant formula and 1,100 tonnes (+8.9%) more full milk powder for the Swiss chocolate industry.

An intensive business year
2010 was a very challenging business year, both economically and politically. The strong Swiss franc hindered the export of quality Swiss foodstuffs such as infant formula, chocolate or biscuits. The 'Schoggi' law contributions made available by the Swiss government to offset the handicap posed by domestic raw material prices proved far from adequate for the purpose. The HOCHDORF Group estimates its milk quantity exported in the form of infant formula, chocolate or biscuits at approximately 110 million kg. This is a considerable quantity of milk that would be lost to milk producers if the food¬stuffs-processing industry were to make use of the active inward processing arrangements. Fortunately an agreement was reached within the industry to offset the missing contributions from the 'Schoggi' law.

The HOCHDORF Group achieved its own internal capacity target for the new, ultra-modern spray tower line 8 in Sulgen. This involved a huge effort in the areas of production and marketing. The plant has already been running as a three-shift operation since December 2010. The plant volume will virtually double in 2011, which is what is required to achieve the target growth in the area of powdered infant milk formula.
Growth abroad as well
At the beginning of 2010 the HOCHDORF Group assumed an interest in the MGL Baltija UAB milk plant in Medeikiai, Lithuania. This plant provides the HOCHDORF Group with a foothold in the EU and with direct access to the east European market. The Group increased its share from 30% to 45% as of January 1, 2011 and will take over the milk plant completely in the medium term.

Projection for 2011
The optimisation and restructuring measures initiated by the HOCHDORF Group in 2009 and consistently pursued in 2010 have proved successful - and the business has been turned around. The Group is therefore expecting positive financial results for 2010. 'With the investments we have undertaken, along with process improvements and divestments, we can look forward to the future proactively and with confidence,' says Damian Henzi, CEO of the HOCHDORF Group. Henzi adds: 'The HOCHDORF Group must and will retain its focus on achieving EU cost compatibility and internationalisation.' The rising milk powder prices on the world market also give grounds for optimism in 2011. And some product prices were also adjusted upwards.
Important dates
Annual Media Conference: Wednesday April 13, 2011 in Hochdorf General Meeting: Friday May 13, 2011 in Hochdorf

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Information and Explaination of the Issuer to this News:
The HOCHDORF Group, based in Hochdorf, achieved a consolidated gross turnover of CHF 351.7 million in 2010. It is one of the leading foodstuff companies in Switzerland, employing 317 full-time staff as of 31.12.10. Made from natural ingredients such as milk and wheat germ, HOCHDORF products have been contributing to our health and wellbeing since 1895 - from babies to senior citizens. Our customers include the food industry, the retail industry, bakeries and the catering trade. Our products are sold in over 80 countries. The HOCHDORF Group's shares are traded on the Berne stock exchange and are distributed among approximately 1,200 shareholders.

01.02.2011 News transmitted by EquityStory AG. 
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Language:               English
Company:                HOCHDORF Holding AG
                        Siedereistrasse 9
                        6281 Hochdorf
                        Schweiz
Phone:                  +41 41 914 65 65
Fax:                    +41 41 914 66 66
E-mail:                 hochdorf@hochdorf.com
Internet:               www.hochdorf.com
ISIN:                   CH0024666528
Swiss Security Number:  
Listed:                  BX
 
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