Swiss dairy group Emmi has booked a slight decline in first-half net profits, despite a “considerable” increase in sales during the period.
Emmi said today (28 August) that sales rose 17% in the first half of 2013, increasing to CHF1.57bn in the period. The top line was boosted by acquisitions, however Emmi flagged up pricing pressure in European markets – notably Switzerland.
The company said its sales trend “remains on track” and raised its full-year sales outlook from previous estimates of 6-8% to a range of 8-10%.
Lower prices hit margins and the company said net profit slid 0.8% to CHF39m. The group said adjusted operating profit rose 5.3% to CHF53m.
Emmi reafirmed its full-year profit outlook for flat EBIT of CHF140-155m and a net profit margin of around 3%.