Emmi reports 2018 results

Urs Riedener

Swiss dairy group Emmi generated sales of CHF 3457.4 million in 2018. Compared to 2017 (CHF3.3 billion, or €2.9bn) this represents an increase of 2.8%. Organic, ie, adjusted for currency and acquisition effects, resulted in sales growth of 2.3%. This figure is within the target range of 1.5% to 3% confirmed by Emmi in August 2018.

Sales of the Americas division were at the upper end of expectations. The Swiss division exceeded expectations slightly and the Europe division even significantly.

Success factors included Emmi Caffè Latte (Switzerland and abroad), the Italian desserts, the international goat milk products (primarily US and the Netherlands) and the dynamic development in Tunisia and Chile.

Urs Riedener, CEO of Emmi, explained, “We are satisfied that we have achieved significant organic growth. The quality of the growth is also true with the promotion of brand growth, the good development of niches such as Italian desserts and goat’s milk products as well as the upswing in the emerging markets of Tunisia, Chile and Mexico. We expect that the acquisitions of recent years will continue to boost sales.”

Dairy products (milk, cream, butter) generated significantly higher sales, primarily as a result of higher milk prices. Cheese, Lucerne cream cheese and Le Petit Chevrier were up, while sales of fondue and AOP cheese were down. Among other things, this is due to the 3.2% higher imports of cheese (source: TSM Treuhand).

In fresh products, Emmi Caffè Latte and the new protein-enriched products posted increased sales, while Yoqua and retail own brands declined. The cream cheese sales benefited from the warm summer, which led to a higher mozzarella sales.

The Swiss division’s share of consolidated sales was 49.6% (previous year: 51.4%).

The Americas Division covers the US, Canada, Mexico, Chile, Tunisia, Spain (excluding Lácteos Caprinos) and France.

Sales increased from CHF 949.8 million to CHF 1044.3 million: an increase of 10%. Organic, ie adjusted for currency and acquisition effects, resulted in an increase of 5.6%. This is at the upper end of the projected 4-6%. The positive acquisition effect is attributable to the consolidation-related increase in the stake in premium food importer Mexideli.

Key growth drivers were the significantly higher sales of Emmi Caffè Latte and the Italian specialty desserts from all three dessert companies, which had a positive impact on the fresh produce segment. Overall, organic cheese was slightly negative overall, mainly due to lower AOP cheese sales. Kaltbach and Der Scharfe Maxx, on the other hand, met with a very good response in Germany and led to rising sales in this market

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