Switzerland-based bakery firm Hiestand has reported a buoyant first-half of the year thanks largely to the acquisition of Germany’s Fricopan Group.
Hiestand saw sales leap almost 50% to CHF353.2m (US$293.7m) during the first six months of the year; operating profit jumped almost 45% to CHF31.1m.
The company, which also has operations in eight countries outside Switzerland, admitted that sales were buoyed by its May 2006 acquisition of Fricopan.
However, Hiestand pointed to “very substantial” organic sales growth during the second quarter of 2007, when revenue climbed almost 16%.
The results led Hiestand to confirm its financial targets for 2007. The company has forecast organic sales growth of 8-10% and an EBIT margin of 8-9%.
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Hiestand said that price hikes and efficiency gains would offset the threat of rising commodity costs. “The sharp, sustained rise in the price for raw materials such as flour, butter and packaging materials expected in the second half of the year will be offset through increases in prices and productivity in other areas,” Hiestand said.