EMMI AG
Emmi Management AG / Key word(s): Half Year Results Ad hoc announcement pursuant to Art. 53 LR Lucerne, 18 August 2023 – In a market environment which remains challenging, the Emmi Group increased its half-year sales by 4.3% to CHF 2,103.4 million. The broad-based organic growth of 6.5% is attributable to the consistent implementation of strategy and differentiated market positions with innovative brand concepts as well as the diversified country and product portfolio. Thanks to operational advances − particularly in the strategic niche of chilled premium desserts in the USA and in important growth markets such as Chile and Mexico − together with the continuing recovery in the food service business, Emmi recorded a clear improvement year on year. EBIT was CHF 138.5 million, with an EBIT margin of 6.6%. With its ambition to be a role model for sustainability, Emmi published its seventh Sustainability Report outlining its multi-year sustainability commitment. In the course of the ongoing portfolio transformation, Emmi disposed of Gläserne Molkerei. Adjusted for the one-off loss on this disposal, Emmi confirms the expectations for full-year 2023 for organic sales growth, EBIT and net profit margin announced on 1 March 2023.
In a continuing challenging market environment characterised by persistently high input costs, the Emmi Group increased its half-year sales to CHF 2,103.4 million (previous year: CHF 2,016.5 million). Sales growth of 4.3% comprises organic growth of 6.5% and a negative currency effect of 2.2%. As expected, price-driven organic growth in the first half-year exceeded our forecast for the full year (3% to 4%) and confirms the consistent implementation of strategy and focus on differentiated market positions with innovative brand concepts as well as the diversified country and product portfolio.
Division Switzerland
The market environment remained challenging for Emmi in the first half of 2023. Input costs increased for longer than expected and are at a historically high level. Nevertheless, thanks to operational advances − particularly in the strategic niche of chilled premium desserts in the USA and in the important growth market of Chile − as well as continuing strong performance in Mexico and the ongoing recovery of the food service business, Emmi managed to improve significantly on the first half of 2022 and reach the level seen the year before last. The consistently implemented efficiency and cost-saving programmes as well as responsible sales price increases also had a supporting effect. This largely offset the significant rise in input costs and compensated to a large extent for the margin losses suffered in the same period last year.
As part of the ongoing consistent portfolio transformation and focus on profitable, strategic markets and niches, Emmi announced the disposal of Gläserne Molkerei GmbH, located in north-eastern Germany, on 6 July 2023, which was completed on 14 August 2023. This transaction has not yet had any impact on the half-year financial statements. In the second half-year, however, it will result in a one-off loss of around CHF 38 million in EBIT and CHF 30 million in net profit. The negative cash impact of the transaction amounts to approximately CHF 10 million.
With its ambition to be a role model in the area of sustainability, a key pillar of its strategy, Emmi made further progress in implementing its sustainability model, which it has been pursuing with consistency and purpose for many years. The Group has now published its seventh Sustainability Report, which reaffirms Emmi’s long-term commitment and highlights the progress it has made, particularly in the areas of employees, the environment and society, as well as in the focus area of sustainable dairy. Emmi is also committed beyond its own core business, for example in the development of a catalogue of criteria for sustainable milk outside Switzerland. The co-initiated resource project “KlimaStaR Milch”, which aims to make the Swiss dairy industry more competitive with respect to climate protection, food competition and competition for land, also got off to a successful start.
The Annual General Meeting elected Urs Riedener as the new Chairman of the Board of Directors last April. Emmi would like to thank outgoing Chairman Konrad Graber for his tireless efforts to secure a strategically sound footing for the Emmi Group over his many years of successful collaboration. Former CFO Ricarda Demarmels succeeded Urs Riedener from within the company's own ranks as CEO of the Emmi Group at the start of the year. Sacha D. Gerber as new Chief Financial Officer from 1 June 2023 and Raffael Payer as new Chief Marketing Officer from 1 October 2023 complete Group Management.
Adjusted for the aforementioned non-recurring effects from the disposal of Gläserne Molkerei and the sale of Ambrosi, Emmi reaffirms its outlook and expects organic sales growth of 3% to 4% at Group level for 2023 as a whole. Division Switzerland continues to face a highly competitive market, with import and price pressure exacerbated by the strength of the Swiss franc, and Emmi is forecasting organic sales growth of between 2% and 3% (previously: 1% to 2%). In its international business, Emmi expects organic growth of 6% to 8% (unchanged) in division Americas and lower organic growth of 0% to 1% (previously: 3% to 5%) in division Europe due to the challenging economic environment.
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Contacts Media Investors and Analysts About Emmi Emmi is the leading manufacturer of high-quality dairy products in Switzerland. Its roots date back to 1907, when it was founded by dairy farmer cooperatives in the Lucerne region. With its focussed strategy, innovative products and brand concepts established beyond Switzerland, such as Emmi Caffè Latte and Kaltbach cheese, Emmi has grown into an internationally active, listed group (EMMN) with a strong local presence in 14 countries. Emmi’s business model is traditionally based on a careful approach to nature, animals and people. In this way, Emmi creates the best dairy moments, today and for generations to come, while also contributing to value creation in rural regions. The company distributes its quality products in around 60 countries and manufactures these at over 50 of its own production sites in eleven countries. With more than 9,000 employees, around 70% of whom work outside Switzerland, the Emmi Group generated sales of CHF 4.2 billion in 2022. End of Inside Information |
| Language: | English |
| Company: | Emmi Management AG |
| Landenbergstrasse 1 | |
| 6005 Luzern | |
| Switzerland | |
| E-mail: | info@emmi.com |
| Internet: | www.emmi.com |
| ISIN: | CH0012829898 |
| Valor: | 1282989 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 1706381 |
| End of Announcement | EQS News Service |
1706381 18-Aug-2023 CET/CEST
