Emmi reports solid organic growth

Last year the Swiss dairy group Emmi generated net sales of CHF3,494 million (€3.3bn).

The organic growth of 2.2%, is broadly supported across all divisions. In the second half of the year, sales grew organically much faster than in the first half of the year, especially in Switzerland and the Europe divisions. The growth drivers were the strategic niche markets such as Italian dessert specialities and goat milk products, Emmi Caffè Latte and the growth markets of Latin America and North Africa.

The past year was also characterised by intensive work on the investment and product portfolio in line with the long-term corporate strategy. Emmi’s position in growth markets outside Europe was further strengthened and investments were made in niches.

“We were very active in terms of acquisitions in 2019 and have thus tapped important development potential for the coming years. In this way we can strengthen our business in growth markets, promote branded products and further expand our strong positions in Italian desserts and goat milk products,” explained Urs Riedener, CEO of Emmi.

In Switzerland, organic growth of 1% was higher than expected, partly due to the positive development of Emmi Caffè Latte and the milk price increase as of October.

By contrast, organic growth in the Americas division of 4.1% was at the lower end of the target range. Business with cow and goat milk cheese, Emmi Caffè Latte in Spain and the Mexico market developed particularly well in this division. The ongoing unrest in Chile and the low milk production in Tunisia are a challenge, the company said.

The Europe division recorded organic growth of 1.6%, which has been adjusted downwards as part of the half-year results. In Europe, the strategically relevant niche markets such as Italian dessert specialities and goat’s milk products posted encouraging growth. While Emmi Caffè Latte also grew strongly in Europe, declining volumes and lower prices at the Gläsernen Molkerei in Germany weighed on division growth in Europe.

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