FDBusiness.com

Emmi Improves Earnings Despite Sales Drop

 Breaking News
  • Diageo Launches New Super-premium Gin Diageo is introducing a new super-premium Italian gin, Villa Ascenti. The launch comes at a time when the super-premium and ultra-premium gin categories are the fastest growing segment within gin in Europe. Villa Ascenti will initially be available in 14 European countries. A new €420,000 (£360,000) distillery has been built on the site of the brand [...]...
  • European Commission Proposes to Increase Price Transparency in the Food Chain Having banned unfair trading practices and improved producer co-operation, the European Commission has presented the third element to improve fairness in the food supply chain by introducing greater transparency in the way prices are reported throughout the chain. The European Commission has tabled a proposal that will make available crucial information on how prices are determined [...]...
  • Irish Distillers Launches ‘A Story of Irish Whiskey’ Podcast Series Irish Distillers, Ireland’s leading supplier of spirits and wines and producer of some of the world’s most well-known and successful Irish whiskeys, has launched its first podcast, ‘A Story of Irish Whiskey’. Produced by Last Cast Media, the five-part series is a story of coming together, sharing, conquering markets and how three families, competitors for [...]...
  • C&C Group Increases Revenue by 187.3% to over €1.5 Billion C&C Group, the UK and Ireland drinks production and distribution business, increased net revenue by 187.3% to €1.575 billion in 12 months ended 28 February 2019, reflecting the acquisition of Matthew Clark and Bibendum from the administrators of Conviviality Group in April 2018. Excluding Matthew Clark and Bibendum, and on a constant currency basis, net [...]...
  • 2 Sisters Accelerates Business Transformation 2 Sisters Food Group has announced a series of actions as part of its accelerating transformational strategy to turnaround the business. The company is making further investments in its UK Poultry and Fox’s Biscuits businesses, and is proposing to reduce the number of its UK Poultry sites in order to produce shorter, more efficient supply [...]...

Emmi Improves Earnings Despite Sales Drop

Emmi Improves Earnings Despite Sales Drop
March 29
15:53 2016

Although sales declined by 5.6% or 3.0% in organic terms to SFr3.214 billion (Eur2.949 billion) in 2015, Swiss dairy group Emmi was able to improve its profit levels with earnings before interest and taxes (EBIT) increasing by 10.7% over the prior year to SFr188.9 million. Net profit amounted to SFr120.2 million, 9.9% higher than in 2014. Emmi expects conditions to remain challenging in 2016, especially in Switzerland, but nevertheless anticipates sales to remain stable overall and income to be slightly higher than in 2015.

Sales in Emmi’s Switzerland business division, which accounts for 56% of group turnover, decreased by 5.0% to SFr1.793  billion with volume effects of -3.3 % and price effects of -1.7 %. The Americas division generated sales of SFr798.1 million, which corresponds to a decline of 5.0% but in organic terms, adjusted for currency and acquisition effects, growth was 2.8%.

In the Europe business division sales decreased by 4.2 % to SFr487.3 million and declined by 0.8% in organic terms. According to Emmi, this is a remarkable result given the weakness of the euro, the low milk prices and the rigorously implemented price increases for Swiss export products. Europe accounted for 15% of group sales.

Urs Riedener, chief executive of Emmi.

Urs Riedener, chief executive of Emmi.

Sales in the business division Global Trade business division dropped by 19.1% to SFr135.2 million, largely due to a reduction in butter and milk powder exports.

Urs Riedener, chief executive of Emmi Group, comments: “The pleasing results are attributable to a marked increase in our earnings abroad. We sold two companies in 2014 that were weak in terms of earnings, we intensified the Operational Excellence programmes in our subsidiaries and we diligently implemented the necessary price increases in eurozone countries. In addition, our established, high-margin brand concepts prevailed, even in challenging conditions. I am very pleased that we were able to achieve this increase in profits without outsourcing production abroad.”

Emmi expects organic group sales in 2016 to remain roughly on a par with 2015, despite the difficult situation in the home market of Switzerland. Emmi is targeting more efficiency improvements in 2016, especially in its foreign subsidiaries. Combined with a strict cost management, this should strengthen the earnings performance. Given the improvement in earnings outside Switzerland, the group’s profitability is likely to improve in 2016 and slightly exceed the 2015 figure.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
  • June 25, 2019BevExpo 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements