Swiss cheesemaker Emmi AG became the latest victim of Brexit, lowering its sales forecast as the pound’s weakness makes European-produced goods less competitive in the U.K.
The drop in sterling is cutting into revenue of the Onken yogurts that Emmi produces in Germany and A-27 desserts it makes in Italy, the company said Wednesday, adding that demand in Spain, Italy and France is also weak. The stock plunged as much as 12 percent.
“The issue is the U.K. market, where it has raised prices to offset currency weakness but local players haven’t needed to do so,” wrote Jon Cox, an analyst at Kepler Cheuvreux.
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