Swiss food group Huegli Holding has reaffirmed its confidence in its whole business despite its private-label division seeing sales slide during the first half of the year.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Huegli, which produces a range of food, from organic to private-label, and operates in the foodservice sector, saw sales and earnings rise in the first six months of 2007.
Operating profit rose 21% to CHF13.9m (US$11.5m) on the back of a 6.4% rise in revenue to CHF162m.
Over half of Huegli’s business is made up of natural and organic foods, the production of industrial foods for industry players and private-label lines for discount retailers. The foodservice sector accounts for 40% of Huegli’s sales.
While Huegli saw growth across much of its business, it saw sales from private-label slide 3% during the six months to the end of June.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataHuegli has recently moved to expand its presence in foodservice but CFO Andreas Seibold said the company would look to grow all four of its divisions.
“We have four divisions, we are happy with four divisions and we want to grow them,” Seibold told just-food. Seibold said private-label sales had dipped after strong growth in recent years due to weakness in Germany and Eastern Europe but said Huegli is looking to “consolidate the business and grow again”.
Seibold added that the growth in the company’s first-half profits came after a period of intense investment in 2006 when expansion in Germany, the Czech Republic and Poland weighed on earnings.
