Emmi’s Sales and Profit Performance Slightly Above Expectations

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Emmi’s Sales and Profit Performance Slightly Above Expectations

Emmi’s Sales and Profit Performance Slightly Above Expectations
March 09
10:13 2018

Emmi, the Swiss dairy group, increased its sales by 3.2 % to SFr3.36 billion (€2.87 billion) in 2017. In organic terms (adjusted for acquisition and currency effects), group sales grew by 0.5 %. Sales and earnings slightly exceeded Emmi’s expectations.

Earnings before interest and taxes (EBIT) rose by 1.6 % to SFr206 million, resulting in an EBIT margin of 6.1 % (2016: 6.2 %). Net profit was SFr161.6 million, compared with SFr140.3 million in the previous year, resulting in a net profit margin of 4.8 % (2016: 4.3 %).

Urs Riedener, chief executive of Emmi Group, comments: “Emmi made up a good deal of ground in the second half of the year, boosted by the good sales performance in the US and Tunisia, a well-functioning cheese business and more favourable economic conditions. Our earnings were also supported by the efficiency programme currently running in Switzerland and several international subsidiaries.”

Urs Riedener, chief executive of Emmi Group.

The global economy has accelerated, which will benefit the growth markets of Emmi’s business division Americas in particular. Emmi expects a continued increase in demand in Tunisia and the US, while the Chilean market should also confirm signs of a recovery. Foreign currency effects in countries such as Chile, Mexico and Tunisia will continue to be an issue, however. In addition, the European markets in this division (Spain and France) will once again inhibit growth this year.

Although the economy in the eurozone is expected to grow in 2018, our forecast for the business division Europe takes account of several inhibiting factors such as continued strong competition, the consequences of Brexit and the performance of the British pound. This will affect the performance of Emmi’s UK business (Onken yogurts, exports from Switzerland and dessert exports from Italy). Combined with the recent appreciation of the euro, this business division should make a positive contribution to sales performance overall, taking into account all markets.

Given favourable conditions, sales growth may also be possible in Emmi’s home market of Switzerland in 2018.

To support earnings, Emmi will also continue its efficiency and cost-saving programme and step this up above all at its international production sites. Emmi consequently expects operating profit to be higher year-on-year in 2018.

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