SWITZ: Acquisitions and foreign growth boost Emmi profits
In Switzerland, Emmi's net sales dropped by 2.1%
Swiss dairy Emmi has booked an increase in full-year sales, boosted by recent acquisitions and international growth.
Net sales in 2011 climbed by 1.4% to CHF2.72bn (US$2.96bn), the company said today (2 February). The increase was down to "significant growth" abroad and the "positive development of recent acquisitions", Emmi said.
Revenue from the firm's international business grew by 10.9% to CHF811.4m, which came in at the upper end of Emmi's expectations. The figure was boosted, the company said, by the the purchases of yoghurt business Onken, US cheese maker Cypress Grove Chevre, and Italian desserts firm A-27, in addition to growth in the US.
In Switzerland, however, net sales dropped by 2.1% to CHF1.91bn due to low volumes. The company said it expects import pressure in Switzerland to remain in 2012.
"The level of retail demand is expected to be volatile," Emmi said. "In the major international markets of US and Germany, we expect it to be stable, and in Italy a subdued consumer sentiment."
Nonetheless, Emmi said it expects costs savings and "strong brand concepts" to be the company's "main drivers of success" in 2012.
Emmi's share price edged up 0.98% to CHF195.80 at 13:00 CET today.
Swiss dairy group Emmi has increased its stake in France's Diprola and Spain's Kaiku as it looks to expand internationally....
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