Swiss food maker Hügli booked higher sales and earnings for the first half of the year despite the negative impact of currency exchange, which had a ten-point impact on the top line.
The company said organic sales increased 5.6% in the period, driven in particular by strong sales trends at Hügli's private label business in Germany and the UK. Acquisitions contributed 6.5% top line growth. Including the impact of currency exchange, reported sales were up 1.1% to CHF187m (US$191.7m), the company revealed.
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"In the first half of the year, Hügli was severely affected by the drastic revaluation of the Swiss franc, in particular against the euro, that had occurred in mid-January. More than 80% of Hügli Group’s sales are not realised in Swiss francs. Exchange rates are on average 10% lower and thus depress recorded sales by above CHF19m," Hügli noted.
The group said it put in a "good" operating performance, which enabled EBIT margin to remain at the consistent level of 8.7%, despite currency losses. Operating profit increased 1.6% to CHF16.3m. Net profit rose 1.8% to CHF11.9m, the group revealed.
Looking to the full year, the company said sales are expected to rise 11% in local currencies, underpinned by 4.5% organic growth and 6.5% acquisition-related growth. EBIT in local currencies is also anticipated to rise in the double digits. Reported sales and EBIT including foreign exchange are "expected to stand at previous year’s level despite currency losses".
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By GlobalData
