Swiss dairy group Emmi will miss its profit forecasts for 2007, the company warned today (10 December).

The company blamed a delay in being able to pass on rising raw material costs to consumers.

Emmi also admitted that its estimates of how its fresh products would perform internationally were "too optimistic".

"High levels of investment spending to boost Emmi's international market position and the cold, wet summer in Europe mean that earnings from abroad are significantly below expectations," the company said.

Emmi said it sees a net profit margin of 1.5-1.7% for the current year, down from 2.3% in 2006.

However, the company remained upbeat about its prospects for 2008 when its prices will rise in overseas markets.

"The overheating seen on the European milk market seems to be cooling down again and the milk price looks set to stabilise at a high level," Emmi said.