Swiss dairy group Emmi has booked an increase in first-half profits, boosted by a one-time gain and growth from its international business.
Net profit in the six months to the end of June climbed 55.4% to CHF54.7m (US$57.1m), the company reported today (30 August).
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Emmi said the disposal of its former Butterzentrale site in Lucerne led to an extraordinary gain, resulting in an increase of CHF15.4m in net profit.
Operating profit increased by 11.4% to CHF39.3m, while net operating profit margin improved to 2.9% from 2.7% last year. Emmi said the increase was achieved as a result of improvements in the group’s international business.
The company saw sales increase 2.2% to CHF1.34bn, boosted by an 18.4% rise in international sales to CHF433.9m. Domestic sales, however, slid 4.1% to CHF905.3m.
For the full year, Emmi said it expects net sales to increase by around 6% to 8%, domestic sales to decline 3% and international sales to grow by around 30%. Adjusted EBIT is expected between CHF130m and CHF145m.
Kepler analyst Jon Cox described the results as “solid enough”, despite the “weakness” in Switzerland.
However, he added: “The guidance for the year might disappoint as some had hoped for a raise. The stock is inexpensive.”
