HOCHDORF Holding AG — Earnings Release 2012

Aug 28, 2012

News Details

Ad-hoc | 28 August 2012 17:31

HOCHDORF Holding AG: A solid performance under difficult circumstances

HOCHDORF Holding AG / Key word(s): Half Year Results

28.08.2012 17:31

Release of an ad hoc announcement pursuant to Art. 53 KR

Hochdorf, 28 August 2012 - The HOCHDORF Group processed 247.6 million kg of
milk and whey in the first six months of the year. Gross sales revenue
stands at CHF 184.3 million compared to the previous year's value of CHF
179.9 Mio. (+2.5% compared to the previous year; not including the gross
sales revenue for HOCHDORF Nutribake Ltd.: +6.8%). Operational results
improved under difficult circumstances, such as rapidly decreasing world
market prices for milk powder. The EBIT result was even better, with CHF
3.2 million representing an improvement of +34%. Net profit at concern
level stands at CHF 0.9 million. The export share rose to 35.2% (previous
year 30.3%), due in part to sustained growth in China in the area of infant
formula. The group is in the final stages of negotiation with large Chinese
and South American partners to conclude further supply agreements.

The HOCHDORF Group again processed very substantial liquid quantities in
the first six months of the year, with 247.6 million kg of milk and whey
(-3.3% compared to the previous year). The significantly higher quantity of
whey processed almost compensated for the reduced quantity for milk (+29.4%
compared to the previous year).

A positive development
Despite reduced milk quantities, significant growth in the area of infant
formula led to a 1% increase in the overall quantity produced to 50,541
tonnes (previous year 50,058 tonnes). The volume of products sold also
increased from 48,772 to 49,256 tonnes (+1.0%). These sales meant that
HOCHDORF achieved a gross sales revenue of CHF 184.3 million (+2.5%
compared to previous year). However, the previous year's gross sales
revenue still includes the CHF 7.3 million from HOCHDORF Nutribake Ltd.,
which was sold on 1 April 2011. If this turnover is not included then
growth stands at +6.8%.

Efficiency measures are also beginning to take effect. In comparison to
last year, the group managed to increase its EBITDA by +5.9% to CHF 9.2
million and its EBIT by +34.0% to CHF 3.2 million. If the values for
HOCHDORF Nutribake Ltd. are excluded, then the EBITDA increased by +12.4%
and the EBIT by +64.5%. However, the ordinary result of CHF 1.1 million is
significantly lower than the previous year's result (CHF 15.2 million),
which was significantly influenced by the sale of HOCHDORF Nutribake Ltd..
The group achieved a company result at concern level of CHF 0.9 million
(previous year CHF 14.9 million). The result suffered from exchange rate
turbulence, problems in fine-tuning the complex milk quantity segmentation
and losses from reduced export subsidies.

The 'earned capital' cash flow was increased to CHF 9.1 million (previous
year 5.0 million or +80.8%). The percentage increase (in % of the net sales
revenue) was from 2.8% to 4.9%.

Significant growth in infant formula
This operational result was achieved in economically challenging
circumstances. Despite the continuing economic crisis, the infant formula
area achieved a growth of +52.7% and so generated approximately 20% of the
group's gross sales revenue. A year ago the infant formula division's
contribution was only 13.5%.

The milk derivatives area achieved its result in circumstances dictated by
rapidly decreasing international milk powder prices. Three out of four
litres of milk produced in Switzerland are already subject to the pressures
of the international market. Due to contractual commitments, it was not
possible to absorb the dramatic collapse in prices by reducing milk prices.

The Cereals & Ingredients area is feeling the reticence of the industry's
suppliers in developing new products. It was also possible to replace some
expensive product ingredients with cheaper alternatives. However, it was
still possible to launch new products with VIOGERM(R) wheat germ because of
the continuing trend towards natural and healthy foods.

Takeover of Femtorp GmbH, Germany
The HOCHDORF Group has taken over the company Femtorp GmbH in Germany
(Siegburg) effective from 1 August 2012. The takeover is to be seen in the
light of the increasing internationalisation of the HOCHDORF Group. Femtorp
GmbH previously worked with the HOCHDORF Group, mainly in the area of
desserts, over a number of years, and achieved a turnover of approximately
570,000 euro for the last business year. The plan is to continue to expand
the company as a purchasing, sales and logistics platform, as well as
providing protection from the euro turbulence by setting up HOCHDORF
Germany GmbH in the EU area. It was agreed not to disclose the acquisition
price.

Outlook
HOCHDORF is expecting growth in turnover for 2012 of between 4% and 8%, as
announced in the annual results media conference. This high growth target
remains achievable. The economic and political risks remain high. The
latent danger of a collapse of the single currency would also affect the
group's prospects. For this reason, no profit outlook is being published
for the end of the year. The share price has not developed satisfactorily
in the first half of the year in difficult times for the stock exchange.
However, since 30.6. (CHF 67.00) the share price has increased by +9.7%.
(price at close of trading on 27.8.12: CHF 73.50). In the spirit of our
BEST PARTNER philosophy, the Board of Directors, management and employees
are all committed to a prosperous future for the HOCHDORF Group.

Key figures for the HOCHDORF Group as of 30.6.2012 (consolidated and
unchecked)

                                     1.1.12 -     1.1.11 -

CHF (thousands) 30.06.12 30.06.11 Change
Processed milk, cream and whey
quantities in millions of kg 247.6 256.1 -3.3%
Quantities produced (including cream)
in tonnes 50,541 50,058 +1.0%
Quantities sold tonnes 49,256 48,772 +1.0%
179,870 +2.5%
Gross sales revenues 184,339 (172,588)* (+6.8%)*
Export share 35.2% 30.3%
Earnings before interest, tax, 8,733 +5.9%
depreciation and amortisation (EBIDTA) 9,248 (8,227)* (+12.4%)*
4.6%
as % of production revenue 4.9% (4.5%)*
Earnings before interest and tax 2,392 +34.0%
(EBIT) 3,206 (1,949)* (+64.5%)*
1.3%
as % of production revenue 1.7% (1.1%)*
Ordinary results 1,058 15,191 -93.0%
14,860
Concern results 869 (-1,524)** -94.2%
Staffing levels at 30.06. 370 354 +4.5%
Gross sales revenue per employee 498 508 -1.9%

                                    30.06.2012  31.12.2011

Balance sheet total 283,849 282,487 +0.5%
of which equity capital 134,880 137,338 -1.8%
as a % of the balance sheet total 47.5 48.6

Details of shares 30.06.2012 30.06.2011
Share price (in CHF) 67.00 100.00 -33.0%
Stock exchange capitalisation (in
million CHF) 60.3 90.0 -33.0%

* Results excluding the values for HOCHDORF Nutribake Ltd., sold on
1.4.2011.
** Results excluding the sale price for HOCHDORF Nutribake Ltd. sold on
1.4.2011.

For the complete half-year report (German), see: www.hochdorf.com --> Media

Contact:
Christoph Hug, Corporate Communications, HOCHDORF Group
Tel: 041 914 65 62 / 079 859 19 23, christoph.hug@hochdorf.com

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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 346.6 million in 2011. It is one of the leading foodstuff
companies in Switzerland, employing 361 staff as of 31.12.11 (338 full-time
staff). 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. Its customers include the food industry and
retail sector. Our products are sold in 80 countries. The shares are traded
on the SIX Swiss Exchange (ISIN CH0024666528).

28.08.2012 News transmitted by EquityStory AG.
The issuer is responsible for the contents of the release.

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Language: English
Company: HOCHDORF Holding AG
Siedereistrasse 9
6281 Hochdorf
Switzerland
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: SIX

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