FDBusiness.com

Emmi Holding its Own in a Challenging Environment

 Breaking News
  • Bel to Produce Mini Babybel at its First Canadian Factory Bel Group, a world leader in branded cheese and a major player in the healthy snack market, plans to build its first Canadian plant in Sorel-Tracy, Quebec. The facility, which is scheduled to begin commercial production in early 2020, will be fully dedicated to producing Mini Babybel® cheese. These dairy snacks encased in small and [...]...
  • Irish Whiskey Industry Welcomes EU-Japan Trade Agreement The Irish Whiskey Association has welcomed the signing of the EU-Japan Economic Partnership Agreement, the largest trade deal negotiated yet by the European Union. While sales of Irish whiskey remain relatively low, Japan is currently the largest market in Asia for Irish whiskey and last year Irish whiskey sales in Japan recorded a 15.7% growth to [...]...
  • Optimal Packaging – iba.OPERATE! Sustainable, efficient, safe, fast and smart: With “iba.OPERATE! Packaging & Processing Solutions”, iba is dedicating a large special section in hall B1 to packaging solutions, materials and processes. An attractive appearance is not everything. Hygienic packaging is just as crucial, especially in the food sector. Over 180 companies will be presenting their solutions and novelties in [...]...
  • Eriez Magnetics Europe Celebrates 50 Years of Manufacturing Excellence Industry-leading manufacturers, Eriez Magnetics Europe Ltd, mark its 50th anniversary this year. From humble beginnings has emerged a company who now has a strong customer base and can proudly boast numerous technological achievements and significant growth over half a century. Eriez Europe was established when Bob Merwin, CEO of Eriez Manufacturing Co. in Erie, USA recognised [...]...
  • Royal Unibrew Completes Acquisition of French Lemonade Business Royal Unibrew, the Denmark-based beverages group, has completed the acquisition of Etablissements Geyer Fréres for an enterprise value of DKr660 million (€88.5 million) financed by bank debt. The acquisition of Etablissements Geyer Fréres will give Royal Unibrew increased access to the French soft drinks market and will further strengthen its export portfolio. Employing about 100 [...]...

Emmi Holding its Own in a Challenging Environment

Emmi Holding its Own in a Challenging Environment
August 29
12:00 2016

Swiss dairy group Emmi has reported sales of SFr1.594 billion (€1.458 billion) for the first six months of 2016, which is 2.0 % higher than the previous year’s figure. In organic terms (adjusted for acquisition and currency effects) sales fell by 0.7 %. This was mainly due to low international milk prices.

Emmi exceeded its earnings forecasts. The company generated an EBIT of SFr92.5 million – up 9.5% on the previous year – and an EBIT margin of 5.8 % (previous year 5.4 %). Net profit was SFr60.8 million, compared with SFr46.2 million in the previous year (+31.6 %), with a net profit margin of 3.8 % (previous year 3.0 %). The significant improvement in net profit includes, among others, the non-recurring negative effects of the erratic strengthening of the Swiss franc in 2015.

Emmi’s business in Switzerland, which accounted for 54 % of group sales in the first half, reported sales down 2.4% on the corresponding period in 2015 at SFr853.2 million. This was due to the declining retail business, low milk prices, high competitive and import pressure, and continued strong retail tourism.

Urs Riedener, chief executive of Emmi.

Urs Riedener, chief executive of Emmi.

Urs Riedener, chief executive of Emmi, comments: “The half-year sales reflect the challenging economic environment and the strong competition, with high milk volumes being one of the reasons. The profit development is the result of improved earnings abroad and the strong position in niches. The international subsidiaries contributed again to the profit increase. A further earnings uplift resulted from the more recently acquired companies.”

Recent acquisitions by Emmi include: the cheese business of JL Freeman (Canada, 15 April 2015); Redwood Hill (USA, 31 December 2015); a stake in Bettinehoeve (Netherlands, 2 February 2016); an increased stake in SDA Chile (Chile, 19. May 2016); and the purchase of Cowgirl Creamery (USA, 31. May 2016).

Emmi does not expect the economic conditions to change significantly in the second half of the year, with the highly competitive and volatile environment and the low milk prices likely to remain determining factors in the second half of the year. In addition, significant macroeconomic uncertainties recently appeared. For example, it is not yet possible to fully assess the consequences of the Brexit vote in the UK.

Sales development in 2016 continues to be strongly affected by the challenging situation in the Swiss market, where import pressure and retail tourism persist. At group level, Emmi therefore anticipates a sales growth of -1 % to 1 % (previously 0 % to 1 %) and has slightly increased its earnings outlook (previous EBIT SFr180 million to SFr190 million, new EBIT SFr185 million to SFr195 million; previous net profit margin slightly above 3%, new net profit margin slightly above 3.5 %).

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements