The Hochdorf Swiss Nutrition operating subsidiary was effectively put on the market in April Swiss group Hochdorf has entered a deal to sell its infant formula and dairy ingredients business to investor AS Equity Partners Hochdorf Swiss Nutrition (HSN) will continue to be led by CEO Ralph Siegl and the rest of the management team with current employees retained post transaction which is expected to close before the end of the year Shareholder approval is required at a meeting to be held on 18 September HSN, which is the manufacturing subsidiary of Hochdorf Holding, was effectively put on the market in April in the wake of a March announcement to review options for the struggling business which is headquartered in London with an office in Zurich has been struck for an enterprise value of SFr83m ($97.7m) Hochdorf Holding will only receive SFr15.5m after a syndicated loan deduction of SFr67m The investor will take on the debt obligation Within Hochdorf Holding sits the Hochdorf Group housing the infant nutrition and dairy food solutions units the pair of divisions were merged into HSN “In attempting to secure the operational business and to preserve relating jobs and having carefully considered various alternatives a sale of the subsidiary HSN proved to be the only viable option,” the Swiss group said in a statement Don’t let policy changes catch you off guard Stay proactive with real-time data and expert analysis “Despite a promising realignment and a cash-positive business result in 2023 for the first time in a long time there was no realistic possibility of overcoming the increasing financial burdens at Hochdorf Group level in the foreseeable future even if the business remains competitive.” A review of Hochdorf’s business strategy was launched in 2019 amid a series of profit warnings Hochdorf announced the disposal of its majority stake in the baby-food subsidiary Pharmalys Siegl added: “During the intensive exploratory talks AS Equity Partners expressed great interest in HSN’s potential and acknowledged the strategic direction of our transformation process in recent years particularly in the area of infant nutrition with the Swissness quality feature are to be further expanded and its reliable role in the Swiss dairy industry secured – with the goal of further improving the company’s profitability in a sustainable manner.” Hochdorf Holding has applied for a “provisional debt restructuring moratorium and the appointment of an administrator which has been granted by the competent court.” a renaming of Hochdorf Holding and a delisting of the company’s shares will be put forward to shareholders HSN will not be affected by the debt restructuring process The group added that the proceeds paid to Hochdorf Holding from the HSN sale will not be enough to cover what it called “considerable legacy debt” including a hybrid bond issued in 2017 valued at SFr125m Hochdorf Holding also “had to fully write off the inter-company loans granted to HSN years ago totalling SFr182m in the balance sheet as of 30 June 2024 resulting in over-indebtedness in the standalone financial statements of Hochdorf Holding” the founder and managing partner of AS Equity said: “The technological expertise of Hochdorf Swiss Nutrition its relevance in modern nutrition and the encouraging trend in operational recovery are a compelling basis for us to tap into this interesting international potential “We look forward to continuing the company’s 129-year tradition with our investment.” Hochdorf Group also brought forward its first-half results announcement due to the deal with total sales revenue down 5.5% at SFr145.7m Infant nutrition sales dropped 23.2% to SFr38.9m while revenue for ingredients increased 3.3% to SFr196.8m the group booked a bottom-line loss due to an impairment this subsidiary is recognised at liquidation values in the Hochdorf Group’s half-year financial statements Hochdorf Group reported an accounting net loss of SFr141.5m,” according to a separate results statement Nominations are now open for the prestigious Just Food Excellence Awards - one of the industry's most recognised programmes celebrating innovation This is your chance to showcase your achievements Don't miss the opportunity to be honoured among the best - submit your nomination today Give your business an edge with our leading industry insights View all newsletters from across the GlobalData Media network The case of the Lucerne-based dairy processor Hochdorf sheds light on the instrument of hybrid corporate bonds While they are related to hybrid bonds issued by banks Corporate hybrids are not driven by regulatory requirements The bad news for shareholders and bondholders of the crisis-hit company Hochdorf came just over a week ago. The dairy processor announced that its operating business including its subsidiary Hochdorf Swiss Nutrition (HSN) would be sold to financial investor AS Equity Partners The holding company is now under provisional debt restructuring The sale proceeds flowing into the holding company amount to just CHF 15.5 million as the buyer assumes a CHF 67 million syndicated loan from banks The transaction still needs to be approved by the extraordinary general meeting of Hochdorf Holding shareholders on September 18 Hochdorf Shares: Worthless and Soon to Be Delisted a motion will also be put forward to delist the shares which are (still) traded on the SIX Exchange have lost 95 percent of their value since the beginning of the year and are currently trading around 70 centimes the stock price temporarily rose above 300 francs the company stated that the proceeds from the sale of HSN would not be sufficient «to cover the substantial legacy financial liabilities particularly the 125 million francs hybrid bond issued in 2017 and the associated outstanding interest payments.» Additionally the holding company had to fully write off intercompany loans totaling 182 million francs as of June 30 due to the signing of the sales agreement for its subsidiary Hochdorf Hybrid Bond: From 25 to 5 Percent the holding company applied for provisional debt restructuring which was immediately approved by the court including the bondholders of the aforementioned hybrid bond do not need to take any action at this time It is clear that Hochdorf’s shareholders will have to write off their investment Bondholders are also likely to lose a large portion of their stake The bonds are currently trading at 5 percent The Hochdorf case highlights the instrument of hybrid corporate bonds which belong to the broader family of hybrid bonds Hybrid bonds contain elements of both debt and equity with one or the other aspect dominating depending on the structure and market conditions they are generally cheaper than equity but more expensive than regular bonds regulation is a key driver behind the issuance of hybrid bonds The now well-known Additional Tier 1 (AT1) bonds of Credit Suisse which were fully written off by the Swiss Financial Market Supervisory Authority (Finma) following the UBS takeover the AT1 market quickly recovered after the Credit Suisse incident although there have been no new issuances in Swiss francs since with very long or perpetual maturities (with the issuer having a call option) and optional interest payments meaning the payments can be deferred or skipped If the issuer does not exercise the call option the interest rate often switches (usually from fixed to variable) corporate hybrids do not automatically convert into equity in a stress scenario (nor are they written off by regulators) they are subordinated to regular bonds and other claims within the same class the financial crisis marked the birth of the instrument as regulators worldwide significantly tightened capital requirements in its aftermath Companies opt for this form of financing because it is cost-effective strengthens credit ratings (for senior bonds) means investors must carefully scrutinize the terms and conditions in each prospectus to avoid unpleasant surprises there is no regulator who can wipe out the bonds with a single stroke of the pen corporate hybrids have remained a narrow niche the power company Alpiq and frozen foods specialist Aryzta have such bonds outstanding and Valora also used this instrument for financing In recent media coverage of the Hochdorf case it has been suggested that the financial burden of the hybrid bond was a factor in the company’s downfall had Hochdorf opted for a regular bond in 2017 the situation would not have been much different The payment of the slightly lower coupon could not have been deferred (as it was in Hochdorf’s case) and the moment of truth would have arrived at maturity at the latest It is important to highlight that corporate hybrid bonds can alleviate a company's financial stress and Aryzta provides a prime example of this in the Swiss market finews.com publishes on its own Web-TV-Channel interviews with well-known figures of Swiss finance. + More on this topic + More on this topic + More on this topic LBV Magazine English Edition The pre-Roman Iron Age Celtic culture in Western and Central Europe has left behind numerous artifacts including large burial mounds and impressive archaeological finds much about this civilization remains shrouded in mystery a collaboration between the State Office for the Preservation of Historical Monuments in Baden-Württemberg and the Max Planck Institute for Evolutionary Anthropology (MPI-EVA) in Leipzig has provided new insights into Celtic society through the reconstruction of genomes from individuals buried in several ancient burial mounds The burial mounds of Eberdingen-Hochdorf and Asperg-Grafenbühl are among the richest prehistoric burials in Germany containing gold artifacts and intricate bronze vessels A new genetic analysis has now revealed that two princes buried about 10 kilometers apart were closely related biologically It has long been suspected that the two princes buried in the Eberdingen-Hochdorf and Asperg ‘Grafenbühl’ mounds were related says Dirk Krausse from the State Office for the Preservation of Historical Monuments But this assumption has only now been confirmed through new analyses teeth and bone samples from the inner ear region of the skull were collected and sequenced at the MPI-EVA using the latest methods reconstructing the genomes of a total of 31 individuals The two central burials stood out due to their close genetic relationship After establishing a genetic link between the two individuals the research team explored various possible connections only one scenario is plausible: the Hochdorf prince’s sister was the mother of the Asperg prince This result indicates that political power in this society was likely inherited through biological succession This conclusion is further supported by evidence of relationships among other individuals from the two mounds as well as from the much more distant Magdalenenberg mound constructed approximately 100 years earlier it appears we are dealing with a wide network among the Celts in Baden-Württemberg where political power was supported by biological kinship But how were these Celts related to other inhabitants of Iron Age Europe beyond Baden-Württemberg A detailed analysis of the genetic origins of this group reveals a genetic heritage likely rooted in present-day France which was widespread across southern Germany at that time several individuals showed genetic origins from Italy which correlates well with the Mediterranean-style objects found in the graves the study is a crucial piece in understanding European history during the Middle and Late Iron Age Unlike the Roman period and other early medieval times this era cannot be thoroughly investigated through written sources The genetic evidence provides a new dimension to our understanding of Celtic society and its political structures Max Planck Institute for Evolutionary Anthropology | Gretzinger, J., Schmitt, F., Mötsch, A. et al. Evidence for dynastic succession among early Celtic elites in Central Europe. Nat Hum Behav (2024). doi.org/10.1038/s41562-024-01888-7 Subscribe to get the latest posts sent to your email Archaeologists from universities in the United States and Denmark found deep within the Actun Uayazba Kab cave in Belize two small stone tools dated between 250 and 900 AD that… men and women gathered to play a game called Cuju A team of researchers has succeeded in recreating for the first time in a laboratory experiment a phenomenon that until now only existed as a theory in the realm of… the Cantonal Archaeology of Aargau carried out a rescue excavation between early May 2024 and the end of March 2025 The Egyptian archaeological mission affiliated with the Supreme Council of Antiquities announced the discovery of a group of defensive structures and a system of moats that could indicate… In the southeastern area of the city of Rome archaeologists excavating inside the Triton Baths within the monumental complex of the Villa di Sette… Why did some animals from ancient eras become fossils while others simply disappeared without a trace A recent study on the cave paintings of the Altamira Cave in Santillana del Mar Cantabria (Spain) has concluded that some of the artworks it contains could be much older… A team of paleontologists from the University of Leicester has managed to decipher one of the many enigmas of the dinosaur era—the exact moment when pterosaurs Rome achieved numerous military victories that allowed it to grow and dominate nearly the entire known world in Antiquity Receive our news and articles in your email for free You can also support us with a monthly subscription and receive exclusive content This website is using a security service to protect itself from online attacks The action you just performed triggered the security solution There are several actions that could trigger this block including submitting a certain word or phrase You can email the site owner to let them know you were blocked Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page About  .  Contact  .  Donation much about the Celts remains shrouded in mystery A collaborative effort between the State Office for the Preservation of Historical Monuments in Baden-Württemberg and the Max Planck Institute for Evolutionary Anthropology (MPI-EVA) in Leipzig the genomes of Celtic individuals from several burial mounds have been reconstructed reveals significant information about the Celts’ familial and societal structures The burial mounds of Eberdingen-Hochdorf and Asperg-Grafenbühl are among the most opulent burials in German prehistory featuring gold artifacts and elaborate bronze vessels The new genetic analysis has confirmed that two princes buried in these mounds Dirk Krausse of the State Office for the Preservation of Historical Monuments remarked “It has long been suspected that the two princes from the burial mounds in Eberdingen-Hochdorf and Asperg-Grafenbühl were related but only now has this assumption been confirmed by the new analyses.” Researchers at MPI-EVA sampled teeth and skull bones from the inner ear using the latest techniques allowing them to sequence the genomes of 31 individuals This analysis revealed a close biological relationship between the two central burials it was determined that the most likely relationship was that of uncle and nephew This finding suggests that political power in Celtic society was likely inherited through biological succession The study also uncovered evidence of relationships between other individuals from these mounds as well as from the more distant Magdalenenberg mound This indicates a broad network among the Celts in Baden-Württemberg where political power was reinforced by biological kinship The genetic origins of the Celtic individuals analyzed in this study were traced to present-day France with a widespread presence in southern Germany at the time Several individuals also showed genetic origins from Italy aligning with the Mediterranean styles of many grave goods Additional findings from the study include evidence of matrilineal inheritance of power among the Celtic elites Researchers found that the early Celts may have inherited power through the maternal line as indicated by the genetic link between the two princes known as matrilinear avunculate organization likely arose from the need to ensure genetic relatedness in a society where extramarital mating was common The analysis of the skeletons also revealed other familial connections a great-grandmother and her great-grandson were identified despite being buried about 60 miles and a century apart two individuals were found to be offspring of first-cousin parents suggesting that inbreeding might have been more common among the Celtic elites than previously thought This research supports the notion of hereditary leadership organized along maternal lines the rich burials of women indicate their high status in society Stephan Schiffels from MPI-EVA noted in an email to Live Science “If a ruler has children on their own but also passes power to their sister’s children then there might be an incentive to merge the direct and the sister’s lineage which would then result in first-cousin matings through the female line But we cannot prove such a scenario from the genetic data.” The findings provide a clearer picture of the early Celtic political system characterized by familial interconnectedness and regional hierarchy The study suggests that the early Celtic elite societies of southwestern Germany were highly complex with power and status being passed down through biological kinship and website in this browser for the next time I comment Δdocument.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()) Learn how to describe the purpose of the image (opens in a new tab) Leave empty if the image is purely decorative Learn how to describe the purpose of the image (opens in a new tab). Leave empty if the image is purely decorative. News & Analysis on the Dairy Industry & Markets 09-Dec-2019 Last updated on 09-Dec-2019 at 11:11 GMT With this move, Hochdorf said is taking a step towards financial recovery and increasing its strategic flexibility. The cooperation between the Hochdorf Group and Pharmalys Group will continue, and Pharmalys Invest Holding remains the largest shareholder of the Hochdorf Group. After examining various options, the Pharmalys shares have now been sold. The agreement to sell the 51% shares in Pharmalys Laboratories SA, Pharmalys Africa Sarl and Pharmalys Tunisia SA to Pharmalys Invest Holding was signed on December 6, 2019 for around CHF 100m ($101m). The payment will be made in several instalments until September 2020. Hochdorf Group said the focus on the high-growth baby care division remains unchanged despite the sale of the Pharmalys shares. Pharmalys intends to continue marketing the Swiss baby food produced by Hochdorf. Hochdorf said it will in future increasingly work with the traditional Swiss brand Bimbosan and the Babina brand. Hochdorf said that in spite of the sale being an important step towards financial recovery, due to currently low sales in the baby care segment and the technical challenges posed by the new spray tower line in Sulgen, a negative result is still expected for the current fiscal year. Hochdorf extends loan and agrees on additional credit28-Oct-2019By Jim CornallA loan from a banking consortium has been extended and adjusted for Swiss company Hochdorf Holding Ltd. Hochdorf facing ‘serious crisis’20-Aug-2019By Jim CornallSwiss company Hochdorf issued its financial report for the first half of 2019, and has admitted it is facing a serious crisis. Sale of Hochdorf South Africa Ltd08-Aug-2019By Jim CornallAs part of its focusing strategy, Swiss food company Hochdorf Holding Ltd has sold its 90% stake in Hochdorf South Africa Ltd to African Chocolate Café Ltd, as announced on July 8, 2019. Ice cream for multi-sensorial experiences – new consumer trends Paid for and content provided by Cargill How the EU cheese category is driving innovation with quality schemes Paid for and content provided by European Union The quest for the perfect cheddar – solving challenges for efficiencies texture and flavorPaid for and in partnership with IFF marking a significant reduction in its reliance on such financing over the past three years Aryzta the frozen goods specialist, will repay the outstanding nominal value of 325.4 million francs for its 2013-issued bond (ISIN 20004481) on October 25 The company has officially informed bondholders according to a statement released Monday morning The repayment will be funded through available liquidity and proceeds from a credit facility secured in August 2024 This bond is not an ordinary bond but a corporate hybrid a deeply subordinated instrument in the capital structure Interest payments on such bonds can be deferred or suspended making them more expensive for the issuer compared to traditional bonds Corporate hybrids typically lack a maturity date but can be called by the issuer at certain intervals These corporate hybrids differ from bank hybrids in several ways as the latter are influenced by regulatory requirements Aryzta has faced challenging times in recent years as reflected in the bond’s trading history with prices dropping below 60 percent at points in 2020 Corporate hybrids have returned to the spotlight in recent weeks, particularly due to Lucerne-based dairy processor Hochdorf, which filed for provisional debt restructuring, as reported by finews.ch An extraordinary general meeting on Wednesday will determine whether Hochdorf’s subsidiary and its operational business will be sold to a financial investor It is already clear that Hochdorf’s hybrid bondholders are likely to face significant losses on their 125 million francs investment Corporate hybrids have always been a specialized product in the Swiss market and this niche has narrowed further in recent years and energy provider Alpiq have outstanding hybrid bonds as it still has another outstanding hybrid bond (ISIN 25359278) issued in 2014 the company noted that between 2021 and 2024 it had repaid hybrid bonds (including deferred interest and compound interest) totaling 880 million euro These repayments were funded through operational cash flow or bank loans Indices Commodities Currencies Stocks Sale talk is now around Hochdorf Swiss Nutrition housing the Swiss infant formula and ingredients units Hochdorf has turned its attention to a sale of the holding company’s entire production business in Switzerland and overseas for baby food and ingredients Building on the March announcement that Hochdorf was reviewing options for a sale or partial disposal of its manufacturing business the subsidiary Hochdorf Swiss Nutrition (HSN) will now be put out to potential buyers At the top of the corporate structure is Hochdorf Holding within which sits the Hochdorf Group housing the two units infant nutrition and dairy food solutions which covers “all activities in Switzerland” and the “export business” Ahead of an annual general meeting on 15 May Hochdorf said in a statement yesterday (22 April) that “sales talks are now focussing on a sale of the subsidiary Hochdorf Swiss Nutrition” adding that “the financing of the Hochdorf Group’s operational business remains secured” Hochdorf has been reorganising for a number of years including previous disposals of businesses and manufacturing plants A review of its group business strategy was launched in 2019 amid a series of profit warnings. Before the year was out, Hochdorf announced the disposal of its majority stake in the baby-food subsidiary Pharmalys Hochdorf now operates from two factories – one in the Swiss village of the same name in Lucerne canton and the other in Sulgen the Middle East and South and Central America Its website lists multiple business units under the Hochdorf Holding umbrella in Germany and a single division in Uruguay The largest shareholders are named as Amir Mechria and Tunis Tunesia in Dubai (20.7%) ZMP Invest in Switzerland (18%) and Cayman Islands-based the Bermont Master Fund Just Food asked Hochdorf to clarify what business will remain within the holding entity and the group if a sale of HSN is successful A spokesperson responded: "All the operational business is running within Hochdorf Swiss Nutrition including both plants at Hochdorf and Sulgen and including all the business Hochdorf reiterated the ongoing financial burden from its loans and bond commitments are “difficult to be paid off from Hochdorf Holding Ltd.’s own resources the company booked a net loss in the year to 31 December of SFr10.2m ($11.1m) down from a SFr15.7m loss in the prior 12 months Hochdorf said the “discussions to date have clearly shown that there is currently no realistic prospect of finding investors or buyers for the entire Hochdorf Group or for the holding company the company is now focussing on the potential sale of the subsidiary Hochdorf Swiss Nutrition Ltd (HSN) “The company is examining various scenarios ranging from its continued existence to its dissolution In the event of a dissolution of Hochdorf Holding Ltd. shareholders would have to expect a significant or total loss of their investment.” The infant nutrition unit houses baby formulas such as the Bimbosan and Babina brands while food solutions is engaged in the processing of milk HSN also processes vegetable proteins for milk alternatives and claims to be the “only Swiss manufacturer of condensed milk” The group business reported sales last year of SFr307.8m while sales revenue from infant nutrition rose to SFr103.1m from SFr23.6m compared to a SFr10.1m loss a year earlier remained in the red at SFr3.9m versus a SFr20.1m loss Hochdorf described the difficulties in its 2023 annual report: “Despite the significant operational progress with positive EBITDA and cash flow the executive management and the board of directors of the Hochdorf Group have come to the conclusion that in the foreseeable future even competitive earning power will not be sufficient in any plausible scenario to bear the increasing legacy burdens from the complex financing and capital structure “Measures to this end - partly due to the hybrid bond from 2017 and the resulting rising interest burden - have proven to be virtually impossible to realise.” Hochdorf said its approach to potential investors is being expanded Switzerland-based dairy products manufacturer Hochdorf Group has said it is eyeing a sale or partial sale of the business In an update on its 2023 performance and the options before the business for financial restructuring the Bimbosan baby food and Babina infant-formula brands owner said its “approach to potential investors is being expanded accordingly” but said no decisions have yet been made Hochdorf has been attempting to reshape its operations for a number of years it announced plans to close a factory in its namesake Swiss town as part of efforts to focus on infant formula Some 40 full-time jobs were lost as a result Hochdorf said it had made further operational progress during the year generating a “remarkably positive EBITDA” after being in “deep negative territory over the previous years” the company said it had “come to the conclusion that even a competitive capacity for earnings will not be sufficient enough to compensate for the legacy burdens of the past” resulting from “complex financing and capital structure” and hence the need to look at options for restructuring net sales revenue increased in 2023 compared to the previous year with sales in both the food solutions and infant-nutrition divisions “exceeding expectations” The company said EBITDA was in the “higher single-digit million range” compared to a loss of SFR10.1m ($11.4m) in 2022 Hochdorf said the positive operating performance of the past two years has indicated to its management and board that the company has a “profound business model” But the group said measures aimed at the recapitalisation of the company have “so far occurred to be hardly achievable mostly due to further increasing interest rates from the hybrid bond issued in 2017” It added: “With joint efforts the executive management and the board of directors will further engage for a continuation of the business on a sustainable financial basis as well as for the preservation of jobs Various options are being examined with a focus set towards sale or partial sale by keeping the operating business together.” Just Food has asked Hochdorf for further details of its restructuring plans has around 330 employees and sells its products in more than 90 countries As well as manufacturing and distributing its own branded products it also provides dairy ingredients and offers co-manufacturing services View all newsletters from across the GlobalData Media network. 08-Mar-2021 Last updated on 08-Mar-2021 at 11:50 GMT The company said for babies with a sensitive digestion, the new goat milks can represent a welcome alternative. The WHO recommends six months of exclusive breastfeeding, however Hochdorf noted there are situations where a baby needs supplementary food or breastfeeding is not possible. For children with a sensitive digestion, Bimbosan said its goat milks can be a good alternative. Goat milk has good digestibility, because goat milk contains smaller “protein globules” that can be broken down better by digestive enzymes than cow's milk proteins. Bimbosan goat milks do not contain palm oil or starch. In line with statutory requirements, they are also gluten-free. The full range of Bimbosan products can be found in all Swiss pharmacies and chemist shops. Some products, including the goat milk range, are available in larger Coop sales outlets and in various online shops. The new goat milk-based infant formulas from Bimbosan are suitable for children from birth. They are available in a 400g tin with a measuring spoon, a sustainable 400g refill bag and in travel portions of 5x25g. Hochdorf to sell Marbacher Ölmühle21-Dec-2020By Jim CornallSwiss dairy company Hochdorf is to sell Marbacher Ölmühle GmbH to a German family office company focusing on long-term commitment in the organic food industry. After announcing the relocation plan in 2021 the Swiss group will make the move by 2027 Hochdorf today (12 September) set out its plan to close the factory in its namesake Swiss town as part of the group’s efforts to focus on infant formula Please check your inbox to download the Whitepaper By downloading this Whitepaper, you acknowledge that GlobalData may share your information with Morinaga Milk and that your personal data will be used as described in their Privacy Policy Tick here to opt out of curated industry news Visit our Privacy Policy for more information about our services including information on 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 The company plans to close the plant in the town of Hochdorf by the end of 2026 The publicly-listed group said only the factory’s kit necessary for infant formula will be rebuilt at its second site in Sulgen in north-east Switzerland “The relocation of all powder drying capacities to Sulgen would require high investments which are not economically justifiable on the capital market due to the relatively low profitability of the export powder market,” the company said “Hochdorf remains open to parties interested in capital investment in this regard.” marketing and administration teams – around 90 employees – will remain at the Hochdorf site “By focussing on the Sulgen production site Hochdorf is continuing its consistent and strategic transformation into an internationally competitive competence centre for Swiss infant formula high-margin milk powder specialities and whey refinement The relocation of infant formula production was first revealed in 2021 as it aimed to cut debt Hochdorf had sold off assets over recent years to focus on infant formula and dairy ingredients The move to Sulgen has finally been given the green light off the back of Hochdorf’s “positive half-year results” The group reported net sales of SFr154.2m ($173m) EBITDA stood at SFr6.7m for the six-month period while the net result marked a loss of SFr900,000 “There will always be a need for us to dry milk and other protein sources as base for infant formula made in Switzerland,” a Hochdorf spokesperson told Just Food “We will focus on the baby food business but the production of specialty powders for adult nutrition and the production of semi-finished products for the food industry are a complementary business that we will likely keep as long as it’s financially sustainable and reasonable What we are about to reduce drastically is our share of the milk market regulation in Switzerland – the low-margin commodity products.” Hochdorf CEO Thomas Eisenring has decided to quit his role for "family reasons" amid dissatisfaction from a leading investor with the performance of the infant-formula maker Hochdorf CEO Thomas Eisenring has quit his role for “family reasons” amid dissatisfaction from a leading investor with the performance of the infant-formula maker had “decided to step down and seek a change of career for family reasons” the managing director of Hochdorf’s dairy-ingredients business will take on the role of company CEO on an interim basis On Friday, ZMP Invest, the investment arm of Swiss milk co-op ZMP, which is among Hochdorf’s largest investors, hit out at the company’s recent performance. It proposed three new board directors, including Jörg Riboni, the outgoing CFO of dairy group Emmi ZMP Invest is the majority shareholder in Emmi Eisenring said this afternoon his departure was due to outside interests. “I have become very interested in Africa through my family and would like to get more involved with this fascinating continent,” Eisenring As the architect of the forward integration strategy in this challenging economic environment and current phase of change I am sure that Hochdorf will benefit from a fresh impetus.” thanked Eisenring for his “hard work and enormous commitment” He added: “Thomas Eisenring has shaped the strategy of the Hochdorf Group driven forward integration and positioned the group very well internationally The future Hochdorf CEO must have integration skills as well as sound international marketing and sales experience in line with our forward strategy.” Hochdorf issued two profit warnings amid weaker-than-expected business at African infant-formula producer Pharmalys Laboratories and lower milk fat and butter prices in Europe ZMP Invest pointed to the two revisions as it called for new directors on the Hochdorf board Hochdorf had to publish two profit warnings and the company’s share price has slumped by more than 50% in the last 12 months,” ZMP Invest said “The expensive acquisitions of recent years do not bring the promised results the development of sales and profitability in no way meets expectations and there is no improvement in sight “After several overall unsatisfactory discussions with the board with 14.5% of [Hochdorf] shares … decided to take responsibility for themselves and to renew the board of directors.” ZMP Invest is putting forward Bernhard Merkl It is also proposing Markus Bühlmann just-food had contacted Hochdorf to comment on ZMP Invest’s statement but had not received a response at the time of writing Monday - Friday 9am-12pm / 2pm-6pm GMT + 1 All financial news and data tailored to specific country editions Swiss dairy and infant-formula maker Hochdorf has sold its stake in Pharmalys following a business review launched in May Swiss dairy and infant-formula maker Hochdorf has sold its stake in Pharmalys following a business review launched in May The loss-making company has disposed of its 51% holding in the baby-food subsidiary to the other shareholder Pharmalys Invest Holding The deal includes Pharmalys Laboratories SA Pharmalys Africa Sarl and Pharmalys Tunisia SA “With this move, Hochdorf is taking an important step towards financial recovery and increasing its strategic flexibility,” it said in a statement “The business model of Pharmalys gave the Hochdorf executive bodies little transparency in their operational implementation and little influence on relevant parts of the value chain the financing of the net current assets of Pharmalys proved to be extremely capital-intensive.” Hochdorf has sold the business for less than it paid The statement noted how the company paid CHF245m for shares in the three units within Pharmalys Group up to March 2018 – CHF114m in cash and CHF131m via a mandatory convertible bond Pharmalys Invest Holding will pay “several” instalments for the 51% stake until September next year Hochdorf added in its statement: “With the sale of the Pharmalys investment the Hochdorf Group regains its strategic flexibility and takes an important step towards financial recovery.” However it noted it still expects a “negative result” for the current financial year The company had earlier reported a CHF63.6m first-half loss Commenting on the stake disposal in a research note said: “The loss from this unsuccessful investment is clearly disappointing the facts that a) investors and credit lenders get more clarity about Hochdorf’s new setup and that b) the company can meaningfully deleverage (from net debt-to-EBITDA-20E 6.5 times to 4.4 times) Hochdorf is consolidating infant-formula production in Switzerland with plans to sell what will become a redundant site Hochdorf said its Bimbosan infant-formula business will take over a plant formerly producing wheat germ for the Swiss baby-food products firm from the end of January The site in the municipality of Hochdorf discontinued production of wheat germ after the company last year switched its focus to concentrate on the manufacture of baby foods and dairy ingredients, a decision accompanied by the sale of a number of assets, including its majority holding in Pharmalys Hochdorf said this morning (23 September) the facility will be used for the packaging and shipping of Bimbosan formula and also for additional storage space Bimbosan will now shift its headquarters from Welschenrohr to Hochdorf a move that will result in the loss of ten jobs in production and logistics with the affected employees to be offered alternative positions within the group.  Bimbosan products will also continue to be manufactured at another plant in Sulgen Hochdorf expects the transfer to lead to “considerable synergies in collaboration as well as significant cost savings and more efficient processes” added: “Since the volume of production equipment to be moved is not large and we can free up external storage space we expect annual cost savings of around one million Swiss francs By bringing together the staff in charge of sales marketing and internal administrative services we expect to achieve increased collaboration efficiency which is essential in a dynamic market environment.” Pfeilschifter became the company’s permanent CEO in January this year having held the role on an interim basis from March 2019 through December following the departure of Thomas Eisenring The HOCHDORF Group focused on its technology expertise in 2022 and made steady operational progress with improved earnings quality The gross margin was 29.9% in the second half of the year Despite 80.7% higher energy costs and a sharp rise in raw material costs HOCHDORF achieved a narrowly positive operating profit at EBITDA level in the second half of the year A binding financing confirmation has been received from the existing bank consortium with regard to a two-year extension of the financing agreement that expires in September 2023 HOCHDORF considers itself to be on track with the implementation of its strategy establishing the basis for financial recovery in the medium term The goal for 2023 is to achieve a positive EBITDA Key figures for the HOCHDORF Group (consolidated)¹ CEO and Delegate of the Board of Directors of the HOCHDORF Group said: "2022 was all about operational transformation and focusing on the strengths of our company We made good progress with our realignment and were able to capitalise on our expertise in protein processing and powder technology which is complementary for the Swiss dairy market Thanks to the pleasing development of the gross margin we achieved a marginally positive operating result at EBITDA level earlier than expected in the second half of the year despite significantly higher energy costs and global economic turbulence There is no doubt that the clearly negative net result is not yet satisfactory The implementation of our strategy towards a return to positive operating cash flow is the prerequisite for achieving a sustainable solution in the area of financing and increasing our attractiveness for investors The good start into the new year makes us confident for 2023." Improved earnings quality – constructive cooperation with key customers and raw material suppliers the HOCHDORF Group continued its strict adjustment of the product range and customer premiums initiated in the spring to improve earnings quality The company used this process to make contract and price adjustments that are gradually having a positive effect raw material and logistics costs as well as currency fluctuations burdened the results in the reporting year The Group's net sales revenue decreased by 3.7% to CHF 292.1 million in 2022 compared to the previous year In view of the streamlining of the product range this result was at the upper end of management's expectations and confirms the effectiveness of the strategy adopted there was a partial switch to contract orders with milk provided whereby the milk required for processing is not bought in and sold on by HOCHDORF revenue amounted to CHF 212.6 million (-2.7%) HOCHDORF was able to provide a broader base for the procurement of strategic raw materials such as milk and whey in particular and secure them for further growth in the medium term The Baby Care division recorded excellent demand from July onwards and generated net sales of CHF 79.5 million (-6.4%) in 2022 This pleasing development in the second half of the year underlines the interesting market potential in the international focus markets the result in the second half of the year reflects improvements in the operational cooperation with the major customer Pharmalys Laboratories after practically no sales were made in the first half of the year until the new payment conditions were clarified in 2022 HOCHDORF has been reporting an innovation rate since the 2021 measuring the proportion of total sales accounted for by new products that are less than three years old The 2022 target of 10% was clearly exceeded at 18% indicating the dynamic nature of innovations in the Group's fields of activity innovative products accounted for 52.3% of sales; this figure was 3.3% in Food Solutions Turnaround in profitability in the second half – year as a whole marked by legacy issues The gross margin and EBITDA targets defined by the new management were also met or exceeded in 2022 Gross profit increased by 6.9%² year-on-year on an adjusted basis to CHF 75.4 million Gross margin increased accordingly from 22.9%² in 2021 to 25.3% in 2022 with a strong upward trend throughout the year Operating expenses of CHF 85.5 million increased significantly by 15.4%⁴ year-on-year on an adjusted basis This development reflects the 80.7% increase in energy costs in particular which could not be offset despite strict cost discipline and savings and which could not yet be passed on to customers across the board for contractual reasons HOCHDORF succeeded in significantly exceeding the published target of an EBITDA loss of less than CHF 7.0 million for the second half of the year and achieved a marginally positive EBITDA of CHF 0.6 million the EBITDA was CHF -10.1 million and the EBIT was CHF -20.1 million After a tax income of CHF 8.5 million due to the elimination of deferred tax provisions in the course of the release of hidden reserves the net result at Group level was CHF -15.8 million Proposal to waive dividend after negative result and in view of indebtedness the HOCHDORF Group shows a solid balance sheet Net debt at the end of the year amounted to CHF 56.8 million (previous year: CHF 32.7 million) The operating cash flow was CHF -19.6 million and the free cash flow was also negative at CHF -21.6 million Due to the clearly negative company result and the continued high level of debt the Board of Directors is proposing to the Annual General Meeting on 10 May 2023 that no dividend is paid for the 2022 business year HOCHDORF will not yet repay the outstanding hybrid bond with a nominal value of CHF 125.0 million on the first call date of 21 June 2023 and will defer the interest payments for a further year the interest coupon of the hybrid bond will be 5.0% plus the applicable average five-year swap rate calculated on the principal The short-term and medium-term financing of the HOCHDORF Group is secured with the availability of a binding financing confirmation for the continuation of the syndicated loan by the existing bank consortium with a term of two years The Board of Directors and Group Management will finalise and sign the binding financing confirmation together with the banks in the coming weeks Strategy implementation and important role for the Swiss dairy industry HOCHDORF will continue to systematically pursue its transformation in line with market demand In addition to its continued important regulatory role in the Swiss dairy market the technology and innovation focus on processing (milk) protein provides the company with a differentiated positioning in Switzerland that complements that of the traditional dairies A key element of this is the production and marketing of high-quality infant and follow-on formula in Swiss quality for the local market (Bimbosan) and for selected international markets HOCHDORF aims to further strengthen its operational cooperation with Pharmalys Laboratories and to use their distribution structures The Sulgen plant will also be prepared for the requirements of the US FDA authorities HOCHDORF is using its experience from the infant formula segment to develop innovative products with functional impact for adults and older people An important focus topic is also increasing energy efficiency as part of the sustainability strategy At the Annual General Meeting on 10 May 2023 all existing members of the Board of Directors will stand for re-election with the exception of Markus Bühlmann who will not stand for re-election after four years Ms Marjan Skotnicki-Hoogland and Mr Thierry Philardeau globally networked leaders with extensive expertise in the food industry will be proposed for election at the Annual General Meeting on 10 May Marjan Skotnicki-Hoogland (Dutch citizen) was Vice President at Chilled McCain Europe and Managing Director at CelaVita from 2018 to 2022 she held various management positions for Nestlé Infant Nutrition in the Netherlands and Central Europe for almost twenty years She was also a board member of several industry associations Thierry Philardeau (French citizen) recently retired following a distinguished career spanning over more than 36 years at Nestlé His last assignment was Head of the Nutrition Strategic Business Unit developing the global business strategy and the international leadership of the infant nutrition brands He served for over five years as a Board member of the International Dairy Federation while heading the Dairy Strategic Business Unit at Nestlé Philardeau was also a member of the Board of Glycom SA a leading Danish biotechnology company in the development of human milk oligosaccharides for health applications Chairman of the Board of Directors of the HOCHDORF Group said: "I would already like to thank Markus Bühlmann for his commitment over the past years – his personality and expertise have made him an important linchpin on the Board of Directors we are delighted that Marjan Skotnicki-Hoogland and Thierry Philardeau are standing for election as new members of the Board of Directors We are convinced that their extensive international experience will enable them to make valuable contributions to the further development of the company and give us important new impetus." HOCHDORF has seen broad-based demand for its product range since the beginning of the current year and is confident of achieving its targeted positive EBITDA for the full year 2023 HOCHDORF is working towards achieving a long-term financing solution that will give the company the necessary scope in the transformation phase to implement the changes it has initiated and provide further support as it ventures into new markets and regions [1] The comparison between the 2022 and 2021 financial years is limited due to special factors; for details see the Financial Report in the 2022 Annual Report Non-GAAP measures are shown in the Annual Report in the Notes to the 2022 consolidated financial statements of the HOCHDORF Group [2] Excluding profit from the sale of the Hochdorf/Welschenrohr properties of CHF 40.6 million in the 2021 business year [3] Including profit from the sale of the Hochdorf/Welschenrohr properties of CHF 40.6 million in the 2021 business year [4] 2021 excluding costs and provisions of CHF 9.8 million in connection with the planned move of production from Hochdorf to Sulgen and other costs of CHF 1.2 million 2022 excluding the release of provisions of CHF 1.6 million due to the delayed move of production from Hochdorf to Sulgen Material to download and further information HOCHDORF is the Swiss centre of excellence for milk processing specialising in powder drying and mixing technology for milk-based and alternative proteins The technology company based in Hochdorf (LU) and Sulgen (TG) in Switzerland develops functional foods and ingredients for industrial customers and consumers around the world these products help shape the changing eating habits of society today and tomorrow The HOCHDORF Group achieved a consolidated net sales revenue of CHF 292.1 million in 2022 and employs 361 staff HOCHDORF shares are listed on the SIX Swiss Exchange Designated Board Member for the planned North American company ahead of the planned listing of Holcim’s North American business Jürg was appointed as a designated independent director to serve on the Board of Directors of the planned North American company The Board will become effective following the execution of the planned spin-off expected by the end of the first half of 2025 Jürg holds an MSc in Mechanical Engineering from the Swiss Federal Institute of Technology (ETH) in Zurich He was Chief Executive Officer (CEO) of GEA Group Aktiengesellschaft a Düsseldorf-based mechanical engineering company listed on Germany’s MDAX stock index and has been a member of the GEA Group Executive Board since joining the company in May 2001 Initially responsible for the Group’s chemical activities he was appointed CEO of GEA Group on 1 January 2005 Jürg spent nearly 20 years with ABB and the Alstom Group where he held several management positions Holcim is a global leader in innovative and sustainable building solutions with net sales of CHF 26.4 billion in 2024 Our 65,000 employees are driven by our purpose to build progress for people and the planet across our regions to improve living standards for all We partner with our customers to offer the broadest range of advanced solutions from sustainable building materials ECOPact and ECOPlanet all the way to Elevate’s advanced roofing and insulation systems The UB researchers Yolanda Llergo and Santiago Riera palynologists from the Prehistoric Studies and Research Seminar of the UB (SERP) led by the UB professor Josep Maria Fullola have set off a study of the textile remains of a prince grave from the 6th century BC in Hochdorf (Baden-Wurttemberg The importance of this archaeological discovery is stressed by the rich grave goods (jewellery bronze and gold) preserved on it which belonged to a Celtic figure who held a high position in the Hallstatt society a Central European culture who experienced the transition from Brozen Age to Iron Age The excellent preservation of the grave made possible to confirm that it contained some rich textile grave goods These remains characterize the discovery as exceptional because textiles are scarcely preserved in archaelogical sites was under a six-metre high tumulus; evidences show that up to eight people had a dinner to honour the deceased the mead contained by a 500 litres cauldron it was proved that the deceased wore a blue dress and was wrapped in several light clothes of strong colours the walls and floor of the chamber were entirely covered with woven and embroidered textiles and all was decorated with flowers Please email us at publicaffairs@yu.edu Copyright © 2023 | Yeshiva University News | Editor Login | Privacy Policy Agency builds presence in Tel Aviv buying controlling stake in Ben-Natan Golan M&C Saatchi has opened an office in Israel following the purchase of a controlling stake in the Tel Aviv-based agency Ben-Natan Golan for an undisclosed sum The new management team includes: Alon Hochdorf as chief executive; Tzur Golan executive creative director; and Anat Ben-Natan as client services director a former chief executive of ZenithOptimedia in Israel was previously the chief executive of Ben-Natan Golan Golan was co-chief executive and creative director at Ben-Natan Golan “We are starting M&C Saatchi Tel Aviv for two reasons because we have found three exceptional partners who share our entrepreneurial spirit and the belief that nothing is impossible the high concentration of hi-tech industries is of particular interest for future investment It seems appropriate for a ‘start-up’ advertising network like us to invest in the ‘start-up nation’.” Jack Wolfskin and Rafa (a pharmaceutical company) will be among the founding clients “Chutzpah is intrinsic to Israeli society and also part of the Saatchi DNA Our agency in Tel Aviv stands at the center of creative thinking and technological innovation – we hope to add some new ingredients to M&C Saatchi’s future story.” M&C Saatchi has expanded its presence in New York and India through purchases in the last six months (Text: Ed Owen. This article first appeared on campaignlive.co.uk)