Swiss dairy food company Emmi has said it is on track in the first half despite posting a lower net profit.

The company reported group net profit of CHF20.4m (US$16.4m) for January to June 2005, compared to CHF22.0m a year earlier.

“In a difficult environment with declining price trends on the whole and noticeable reticence on the part of consumers, operating income was up 2.5% from CHF938m to CHF962m,” the company said, adding that the increase was partly attributable to the acquisition this spring of the organic dairy firm Molkerei Biedermann in Bischofszell.

Emmi said that earnings were in line with expectations at 2.1% of operating income. Products such as Caffè Latte and Benecol helped drive a 10% increase in gross profit to CHF307m, while the development and expansion of international distribution structures in key markets proceeded as planned.
Emmi expects to see growth momentum increase in the second half, with the launch of further innovative products in the areas of lifestyle and health foods.