Emmi Reports Higher Net Profit for First Half

Emmi, the Swiss milk and dairy-products maker, has announced a higher net profit for the first half of the year. This increase can be attributed to a boost in pricing and cost savings. Additionally, the company now expects stronger sales growth in its Swiss division, while Europe's performance is anticipated to be weaker.

Financial Highlights

Emmi achieved a net profit of 97.8 million Swiss francs ($111.3 million) for the first six months of the year, compared to CHF78.1 million in the previous year. Net sales for the half year reached CHF2.10 billion, showing an increase from CHF2.02 billion. Notably, organic sales rose by 6.5%, driven by favorable pricing.

Earnings before interests and taxes also saw a significant improvement, rising to CHF138.5 million from CHF108.6 million. This increase reflected a margin growth from 5.4% to 6.6%.

Revised Sales Growth Expectations

While Emmi maintains its guidance at the group level, revised expectations have been announced for its Swiss division and Europe:

1. Swiss Division: Emmi now forecasts an organic sales growth rate of 2% to 3%, up from the initial range of 1%-2%. This adjustment is due to the strength of the Swiss franc.
2. European Market: Considering the challenging economic environment in Europe, the company anticipates either flat sales or growth of up to 1%. This revised forecast deviates from the previous projection of 3% to 5% growth.