Dairy trader Hoogwegt sees results turning

Dairy trader Hoogwegt in Arnhem saw business opportunities turn around in the fiscal year 2024/2025. From a record profit of €20.5 million in the previous year, the result flipped almost to a mirror image: €19.9 million loss. The fiscal year 2024/2025 was thus a year with two faces, as Hoogwegt states in the annual report. The first half was very different from the second half. Moreover, the dynamics in certain areas of the market where Hoogwegt was active were often very different and erratic. The rapidly increased milk production put significant pressure on prices. Revenue did rise to around €3.3 billion, allowing Hoogwegt to maintain its position as the largest dairy trader in the world. However, the net result was not as the company would have liked, especially not in the year it celebrated its 60th anniversary. Now, a company like Hoogwegt does not just collapse, but adjustments and interventions were necessary, as is noted. The company's activities in Poland were halted, and the 50% stake in dairy company Lone Star Dairy in Texas was sold to this company itself. Hoogwegt will continue to handle the trading for Lone Star. A partial refinancing also took place, increasing the consortium of banks from five to eight. Solvency dropped from 31% to 27.7%. Of the revenue, the largest part, almost 60%, was recorded in the EMEA region. This includes Europe, the Middle East, and Africa. Nearly 17% came from Asia and the Pacific region, while the remaining 23% came from the Americas. Also in the background, something changed at Hoogwegt. At Bracamonte, the holding company, Bart Hoogwegt stepped down as commissioner and his role was taken over by Warden Zuketto, who comes from Farm Frites. A sister of Bart Hoogwegt remains on as commissioner. The chairman of the supervisory board is Harold Poelman, a former Cargill manager.