Swiss private-label manufacturer Huegli has insisted that it expects to drive sales and profits growth as it increases its focus on core activities.
The company today (17 May) announced the sale of its non-core Czech chocolate spreads business, acquired in 1999. The deal is expected to result in a one-time book gain of CHF2m (US$1.8m).
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Commenting on the move, a spokesperson confirmed that some of the proceeds would be reinvested in expanding the company’s core activities.
“We are putting money back into our strategic businesses to drive growth,” the spokesperson insisted. “We are increasing our focus on core activities.”
Huegli raised its outlook for fiscal 2010, with sales expected to attain a level “comparable” to the previous year’s, EBIT anticipated to increase by around 10% and group profit expected to rise by around 20%, including the extraordinary income from the disinvestment.
Last week, the Swiss food maker booked a 17% jump in EBIT for the previous financial year.
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