Huegli, the Switzerland-based food maker, saw its underlying sales growth speed up in the second half of the year thanks to its private-label and B2B divisions.
The company today (27 January) reported a 1.4% increase in sales on an organic basis – which is measured in local currencies and excludes discontinued operations.
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In August, Huegli reported a 0.1% rise in organic sales for the first half of 2011 but an acceleration in revenue growth from its private-label and industrial foods units boosted sales.
However, on a reported basis, the strength of the Swiss franc told in 2011. Sales fell 10.8% to CHF332m (US$361.5m). Huegli said foreign exchange caused “considerable translation losses” of CHF33m.
Nevertheless, Huegli said its manufacturing presence outside Switzerland means costs were expected to have dropped “at a comparable rate” in 2011 and therefore minimise the impact on profits.
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Huegli, which will report its full financial results in April, said its EBIT margin for the year would be 8-9%. The company said that level would be within its “strategic target range” but below last year’s record of 10.2%.
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By GlobalDataLooking ahead, Huegli said it sees sales increasing by 4-5% in 2012. However, it said that EBIT will “grow only at a comparable rate” as raw material costs remain high.
Shares in Huegli were up 1.21% at CHF587 at 14:36 CET.
