Emmi records positive group sales for 2017

Swiss dairy group Emmi improved group sales by 3.2% to CHF3.4 billion (€2.9bn) in 2017. This development reflects higher sales in the Americas (4.1%) and European divisions, (0.8%) as well as a decline of 0.6% in the Swiss division.

Success factors included the cheese business in the US (cow’s and goat’s milk), Emmi Caffè Latte (mainly in Switzerland, UK and Spain), Rachelli desserts, organic dairy and the Tunisian market.

In the Swiss division, sales dropped 0.6 % to CHF 1.7 billion (€1.47bn). As a result, sales in Switzerland, its home market, were in line with expectations, even though price pressure remained high.

A good second half of the year was largely able to compensate for the losses in the first half of the year. Among other things, this was a consequence of the strengthened Swiss retail trade.

Overall, dairy products (milk, cream, butter) generated largely stable sales. Imports and price pressures remained strong, which mainly affected the cheese and cream cheese segments. The Lucerne cream cheese increased, while the AOP cheeses were declining. This reflects the aforementioned higher imports of cheese.

In fresh products, Emmi Caffè Latte, Jogurtpur and Energy Milk posted higher sales, while Yoqua and its own brands declined.

The Americas Division includes the US, Canada, Chile, Tunisia, Spain (excluding Lácteos Caprinos), France and Mexico. Sales rose to CHF949.8 million (€823m), an increase of 9.7%.

Yogurts, desserts and milk sold in Tunisia under the Vitalait brand posted significantly higher sales, with corresponding positive effects on the dairy and fresh produce segments. These were additionally strengthened by the good development in Chile. In the US, locally produced cow and goat cheese developed well, while sales in Spain increased with Emmi Caffè Latte.

The Americas division’s share of Group sales was 28% (previous year: 27%).

In the Europe Division sales rose to CHF564.1 million (€486.4m), which is an increase of 8.7%.

An overall positive acquisition effect resulted from the investments in Bettinehoeve and Lácteos Caprinos, the acquisition of Italian Fresh Foods and the sale of the shares in Venchiaredo.

For fresh products, Emmi Caffè Latte in the UK and Rachelli’s Italian specialty desserts were very positive. In terms of cheese, Kaltbach specialties in Germany, Austria and the UK increased. However, AOP cheeses and Onken yogurts remained under pressure.

The dairy products reflect the growth in sales of the German organic milk specialist Gläserne Molkerei.

The cream cheese segment was positively impacted by the acquisition growth of Bettinehoeve and negatively impacted by declining volumes and prices in Italy.

The good performance in the milk powder/concentrates segment attributed to higher sales of goat’s milk powder (AVH dairy).

The Europe division’s share of Group sales was 17% (previous year: 16%).

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