Russian juice and dairy giant Wimm-Bill-Dann Foods has reported lower interim profit, despite an increase in sales.
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The company posted net income of US$12.9m, or 29 cents per share, for the six months to 30 June, compared to $17.7m, or 40 cents per share, in the year-ago period.
Sales rose 22.8% to $580.4m from $472.6m a year earlier. Sales in the company’s dairy business rose 33.4% to $429.2m, driven by increased regional production.
“We remain committed to our regional expansion strategy and we are constantly widening our regional product offering as consumer spending is growing steadily in the regions,” said CEO Sergei Plastinin.
“Profitability for the group is continuing to suffer from the higher cost of raw milk, increases in personnel and transportation costs and high depreciation charges. At the same time we are taking concrete steps to improve our margins and operational efficiency, including setting management targets linked to profit as opposed to volume, product range optimisation and tight control over costs,” he added.
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