Switzerland-based soups and sauces group Huegli saw M&A boost its first-half revenues but the company admitted organic sales were “disappointing”.
Huegli, which supplies consumer brands, retail own-label and ingredients to industrial customers, booked higher half-year sales and earnings.
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The company’s net profit was up 18.1% at CHF10m (US$10.9m) in the first half of 2012, when earnings tumbled by almost a quarter to CHF8.5m.
EBIT, the company said, rose 13.8% to CHF14m thanks to higher sales and “stabilising” raw material prices.
Sales climbed 10.9% to CHF164.4m but Huegli admitted the increase was “mostly due to acquisitions”. Organic sales dipped 0.2%, a performance it described as “disappointing”.
Sales from its brands solutions division – which makes branded products for manufacturers – were up 9.9% on an organic basis. Sales of its own consumer brands products, which include Heirler lactose-free butter and Cenovis soup – increased 4.4% at local currencies, Huegli said.
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By GlobalDataHowever, private-label sales fell 1.1%, while ingredient sales to industrial customers dropped 10.5% on an organic basis.
Foodservice, Huegli’s largest division, accounting for around 45% of sales, saw revenues boosted by M&A. Organic sales dipped 1.5%.
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