Swiss dairy group Emmi has posted a 2.7% increase in net sales to SFr1.31 billion (Eur1.12 billion) in the first half of 2011 in line with forecasts. Earnings before interest and taxes (EBIT) fell by 6.0% to SFr57.0 million, while net profits declined by 11.6% to SFr35.2 million, resulting in an EBIT margin of 4.4%, down from 4.8% in the prior year, and a net profit margin of 2.7% (prior year 3.1%).
According to Emmi, this is the second best result in company’s history – and a good result in light of the currency environment. The expected sales growth of 2 to 3% and EBIT of SFr120-130 million for 2011 remain realistic. The target range for net profit margin has been expanded to between 2.5% and 3.0%.
Fluctuations on the currency markets have posed a major challenge for companies exporting from Switzerland in recent months. The ongoing strength of the Swiss franc against the euro and the US dollar in particular made exports of Swiss products difficult, and increased import pressure. Emmi was not immune from these developments.
Urs Riedener, chief executive of Emmi, says: “Emmi remains in a strong position in its domestic market. At the same time, acquisitions in recent years have had a positive effect on our international business. Both of these factors contributed to our achievement of a pleasing result, in spite of currency turbulence.”
Emmi’s international business accounted for 28% of total sales, with products exported from Switzerland and locally produced products each making up half of this figure.