FDBusiness.com

Swiss dairy group Emmi has posted a 2.2 % increase in net sales in the first half of 2012 to SFr1.34 billion (Eur1.1 billion), with strong growth in its international business. EBIT and net profit were both affected by an extraordinary gain. Adjusted for this effect, earnings before interest and taxes (EBIT) rose by 8.2 % to SFr61.7 million, while net profit increased by 11.4 % to SFr39.3 million, resulting in an EBIT margin of 4.6 % (prior year 4.4 %) and a net profit margin of 2.9 % (prior year 2.7 %).

Emmi has recovered from the currency fluctuations in 2011. Group-wide sales growth of 6% to 8% and EBIT of SFr130 million to SFr145 million for full-year are realistic goals. The target range for net profit margin has been left at approximately 3 %.

Emmi’s sales in Switzerland declined by 4.1 %, reflecting the current difficult situation for the retail, wholesale and catering sectors. Net sales in all product groups, excluding cheese, were reduced to a total of SFr905.3 million (prior year SFr943.7 million). However, Emmi’s international business posted a pleasing 18.4 % increase in sales to SFr433.9 million. In organic terms, when adjusted for acquisition and currency effects, the change amounted to -1.1% (group level), or -4.8% (Switzerland) and +8.4% (international). Net sales are in line with the targets set by the company at the start of the year.

DUrs Riedener, chief executive of Emmi, comments: “We have mastered the continuing challenging environment extremely well. Our strong result is thanks to various established brand platforms and the pleasing performance of our latest acquisitions abroad. Our solid strategy has proven to be robust over the long term.”