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Hochland must write down US acquisition
The private German dairy company Hochland has had a good 2024, except that it had to write down an American subsidiary that was acquired in 2017. Due to its poor performance, the group's gross profit has been almost halved.
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According to the annual report, turnover in 2024 increased by 4,7% (+€106 million) to €2,36 billion. However, gross profit was almost halved and fell from €107,9 million in 2023 to €56,1 million in 2024. The main reason for this, according to the annual report, is a goodwill impairment. This was deemed necessary due to the weak performance on the American market. Due to a renovation of a branch and shortages of skilled personnel, work was not optimal. German specialists were even flown in for a while. Net profit fell from €78,4 million to €9,5 million.
Hochland is originally a Bavarian family business and has its headquarters in Heimenkirch. However, it is active in various European countries, and also beyond. Of the total turnover last year, 37% came from Germany, 63% came from outside Germany. The solvency is still quite high at 60,5%, but is also at its lowest point in the past five years.
CEO Sebastian Schaeffer is optimistic about the current year. Last year, for the first time, more than 440.000 tons of cheese were produced, mainly soft cheese. The expectation is that even more will be produced this year.