Hochdorf explores sale of businesses as part of restructuring efforts

SWITZERLAND – Switzerland-based dairy products manufacturer, Hochdorf Group has announced its consideration of a potential sale or partial sale of the business as part of its ongoing financial restructuring efforts.

The company, which owns brands such as Bimbosan baby food and Babina infant formula, revealed that it is expanding its approach to potential investors but emphasized that no final decisions have been made at this point.

Hochdorf has been actively reshaping its operations in recent years, with a focus on infant formula. In September, it unveiled plans to close a factory in its namesake Swiss town, resulting in the loss of 40 full-time jobs.

The latest update on its 2023 performance highlighted significant operational progress, with a remarkably positive EBITDA after experiencing deep negative territory in previous years.

Despite the positive operating performance, Hochdorf acknowledged challenges stemming from a complex financing and capital structure, leading to the need for further restructuring options.

The company indicated that a competitive capacity for earnings alone might not be sufficient to offset the legacy burdens of the past.

Meanwhile, unaudited financial figures for 2023 showed an increase in net sales revenue compared to the previous year, with sales in both the food solutions and infant nutrition divisions exceeding expectations.

The EBITDA for the year was reported to be in the higher single-digit million range, a notable improvement from the loss of SFR10.1 million (US$11.4 million) in 2022.

Hochdorf emphasized its commitment to a sustainable financial basis and job preservation, acknowledging the challenges posed by increasing interest rates from the hybrid bond issued in 2017.

The company is actively exploring various options, with a particular focus on a sale or partial sale while maintaining the continuity of the operating business.

Hochdorf, with roots dating back to 1895, employs around 330 people and distributes its products in over 90 countries.

In addition to its branded products, the company provides dairy ingredients and offers co-manufacturing services. Further details on Hochdorf’s restructuring plans are awaited.

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