Swiss food group Huegli has reported and increase of 3.6% in organic sales for the full year 2014.

Sales were up to CHF377m (US$414.50m), when stripping out the currency effects.

All business segments reported an increase in sales, however sales in its foods service arm were sluggish at +0.3% to CHF161.6m.

The firm reported “good growth” in Germany, with a 7.3% increase in sales. Switzerland and the rest of Western Europe were hit by challenges in its food service segment, as well as the loss of a private label “key” account.

Huegli says it expects mid -single digit growth in organic sales and that EBIT for 2015. However, on a reported basis the company issued a warning on the impact that the “massively overvalued” Swiss franc will have on group performance. “Based on the assumption that the prevailing currency relations will last until the end of the year, we expect that they will negatively offset the good organic operating performance, and therefore project the recorded sales and EBIT 2015 to stand at the previous year’s level.”

Shares in Huegli fell 6.91% to CHF680.00 at GMT12.19 today (29 January).