Emmi reports record sales in 2020

Emmi Group sales exceeded CHF3.7 billion (€3.35bn) for the first time last year, of which more than CHF2 billion (€1.8bn) was generated outside Switzerland.

In order to ensure sustainable success, Emmi strengthened its systematic cost management last year and at the same time made targeted, value-creating investments in order to strengthen its innovation and growth plans in the long term. These include, for example, the construction of a new cheese dairy in Emmen and the construction of a production facility in Brazil.

Consistent development on the Emmi company portfolio is also an investment in the future, the company says. The acquisition of the US Indulge Desserts not only gives Emmi its own presence in the world’s largest dessert market, but also additional sales opportunities and economies of scale for the global dessert business. On the other hand, the majority stake in Lácteos Caprinos was sold in order to be able to concentrate the resources on high-growth and high-margin companies.

The company’s own targets for 2020 for both EBIT (CHF256.6 million) and the net profit margin (5.1%) were achieved or even slightly exceeded after adjusting for the aforementioned special effect.

The coronavirus-related uncertainties, concerns about economic development in the markets that are important to Emmi and the ongoing price pressure on dairy products in the home market are shaping the outlook for the current year.

The forecasts for Emmi’s business development in the current year are based on the assumption that the situation in the markets relevant to Emmi will stabilise from the second quarter of 2021, but that a return to normality will not return until 2022. Under these circumstances, the organic sales development at group level should experience a similar dynamic in 2021 as in the past year (1% to 2%).

However, depending on the duration of the crisis and certainly up to the first half of the year, high fluctuations in sales are to be expected.

Emmi expects the home market in Switzerland to weaken. The sustained import and price pressure for dairy products in connection with an expected gradual return to earlier consumption patterns is likely to be reflected in a negative sales development of 1% to 2%.

In the Europe division comparable reasons are likely to lead to a slowdown in sales growth (1% to 3%).

The recovery in the Americas division, which was badly affected by the COVID crisis, is likely to accelerate and the division will thus become a growth driver again (4% to 6%).

Continuity can also be expected in the EBIT development (CHF275 million to 290 million) and the net profit margin (5.2% to 5.7%).

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