FDBusiness.com

Challenging Italian Yogurt Market Impacts Emmi’s First Half Profits

 Breaking News
  • UK Grocery Prices Rising at Fastest Rate in Four Years The latest grocery market share figures from Kantar Worldpanel, for the 12 weeks to 5 November 2017, show UK supermarket sales have increased in value by 3.2% year-on-year in the run up to Christmas. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “Volume sales have increased by less than 1%, meaning it’s [...]...
  • Alcohol Minimum Unit Pricing to Go Ahead in Scotland The UK Supreme Court has ruled that minimum unit pricing for alcohol, which was passed overwhelmingly by the Scottish Parliament in 2012, can now proceed. Scottish Health Secretary Shona Robison has welcomed the decision and confirmed she intends to make a statement to Parliament shortly, setting out the Scottish Government’s next steps. Following the unequivocal backing [...]...
  • GEA Brings Together Technologies to Supply Extended Production Line For BMI GEA has recently been selected to supply an extended pasta filata cheese production line for BMI in Jessen, Germany. With this exemplary project GEA brings together its joint cheese-making expertise, resulting from its acquisition of de Klokslag and CMT in 2014 and 2015 respectively, with GEA’s flow and processing experience to provide a single offering for this [...]...
  • Bosch Packaging Technology Wins German Design Award 2018 The Sigpack VPF (Vertical Platform for Flat Pouches), the first freely scalable flat pouch machine from Bosch, has been honoured with the German Design Award 2018 in the Excellent Product Design category. The German Design Council presents the prestigious award on an annual basis. The German Design Award is the second prestigious accolade for the [...]...
  • Premier Foods Returns to Revenue Growth Premier Foods, the UK convenience food group, has reported group revenue of £353.3 million for the 26 weeks ended 30 September 2017 – an increase of 1.5% on the prior period – with Branded revenue in line with last year at £295.4 million while Non-branded revenue increased by 10.1% to £57.9 million. Group reported half year [...]...

Challenging Italian Yogurt Market Impacts Emmi’s First Half Profits

Challenging Italian Yogurt Market Impacts Emmi’s First Half Profits
August 28
09:31 2014

Swiss dairy group Emmi has increased sales by 3.1% to SFr1.63 billion (Eur1.35 billion) in the first half of 2014 but net profit after exceptional items decreased by 76.1% to SFr9.8 million with EBIT down 41% to SFr39.8 million. The drop in profitability was due to the difficult economic situation in Italy and the challenging conditions in the yogurt market, which necessitated an impairment charge on Emmi’s Trentinalatte business of SFr38.5 million. Adjusted for non-recurring items, EBIT rose by 14.3% to SFr74.3 million and net profit by 15.9 % to SFr45.2 million in the first half.

Emmi is continuing to pursue its international strategy and grow both organically and through targeted acquisitions. One example of this is its increased stake in Gläserne Molkerei in Germany, which has risen from 24% to 76%.

Emmi achieved sound growth in its home market of Switzerland, as well as in the US, Spain, Chile and Tunisia. In organic terms (adjusted for acquisitions and in local currency) this resulted in group-wide sales growth of 4.1%. International sales increased by 7.1% (organically by 8.4%) to SFr724.0 million, with sales performance in line with the plan announced in the spring. The acquisition effects are attributable to the acquisitions of Käserei Studer (Switzerland) and Rachelli (Italy) and also to the sale of the stake in Nutrifrais (Switzerland).

Urs Riedener, CEO of Emmi, says: “The difficult situation in Italy made the impairment unavoidable. It’s regrettable, but it does reflect Emmi’s intention to take action rather than simply sit and wait for disagreeable situations to go away. The increases in sales, adjusted EBIT and net profit are encouraging. They are evidence that our strategy has put us on the right track and we will continue to pursue it with determination.”

Emmi has confirmed its sales forecast for 2014 of 3% to 4 % group growth and has adjusted its EBIT and net profit forecasts as a consequence of the impairment in Italy.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 28, 2017Fi Europe
  • December 4, 2017Plastics and Paper in Contact with Foodstuffs 2017
  • January 8, 2018RAI Exhibition
  • January 16, 2018Sival Plant Production Trade Show
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements