12.04.2021

Hochdorf posts improved gross margin

 

Hochdorf LU – In 2020, the Hochdorf Group completed the restructuring plan it had originally launched in 2019. In the previous year, the company realized an increased gross margin despite a decline in net sales revenue. Earnings before interest, tax, depreciation and amortization (EBITDA) returned to positive territory after a negative result was recorded for this item in 2019.

 

According to a press release issued by the Hochdorf Group, the Lucerne-based milk processing firm last year “largely completed” the restructuring project launched in 2019. At the same time, the Group achieved its sales and earnings targets for 2020, the press release explains further. In so doing, the gross margin was increased in comparison with the previous year despite a decline in sales.

 

In specific terms, Hochdorf generated net sales of 306.2 million Swiss francs overall in the year under review. In the previous year, Hochdorf posted net sales of 457 million Swiss francs. The company above all attributes this decline to the sale of the subsidiary Uckermärker Milch GmbH. The gross profit margin, in contrast, improved from 14.1 percent in 2019 to stand at 30.9 percent for the year under review, which illustrates “the positive effect of the agreed and implemented portfolio streamlining”, Hochdorf writes in the press release.

 

EBITDA improved from -74.7 million Swiss francs in 2019 to 13.9 million Swiss francs in 2020. At the level of EBIT, however, an impairment relating to buildings and fixed assets had a negative impact. Nevertheless, Hochdorf still managed to improve the EBIT result year on year from -265.3 million to -67.9 million Swiss francs. Following adjustment for non-recurring effects, operating EBIT was positive at 2.3 million Swiss francs.

 

In the year under review, Hochdorf also transferred its own brand Bimbosan from Welschendorf in the canton of Solothurn to Hochdorf. This should save the Group roughly 1 million Swiss francs per year in expenses.

 

For the current year, the Group is expecting net sales of between 260 million and 300 million Swiss francs. “Hochdorf is well equipped to meet the growing global demand for high-quality and technically sophisticated ‘smart nutrition’ products for people of all ages”, says Hochdorf CEO Peter Pfeilschifter in the press release, explaining the company’s new strategy. “We see interesting growth opportunities with above-average value creation in this area”, he adds.


HOCHDORF Group - Press release



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