Emmi reports strong growth for 2021
Emmi net sales percentage. Image: Emmi
Annual sales are approaching the CHF4 billion mark for Emmi, the largest dairy group in Switzerland, and the company had a strong organic growth of 3.6% in 2021.
EBIT increased in 2021 by CHF12.9 million (4.8%) to CHF 284.1 million. Net income increased by 7.0% to CHF216.7 million.
While business in Switzerland declined slightly for Emmi after the pandemic-related growth in 2020, the momentum in foreign markets and in the strategic niches such as desserts continued. Emmi’s brand concepts once again asserted themselves as growth drivers – above all Emmi Caffè Latte and Kaltbach Käse.
In the Swiss dairy group’s most important expansion market, the US, Emmi has strengthened the strategically important mainstay of speciality cheeses with the acquisition of the Athenos business (number one in the US feta market) and Emmi also expects additional export opportunities for Swiss cheese. Another important key is the development of Emmi Dessert USA, established in 2020, and its integration into the Emmi dessert network.
For 2022, Emmi is assuming organic growth in sales at group level, which, based on inflation, should be slightly at 2.5% to 3.5%. While sales in Switzerland will again fall slightly (-1% and 0%), Emmi expects continued strong organic growth in international business. Due to inflation, this should be above the medium-term expectations in Europe at 3% to 5% and in the Americas, at 6% to 8%.
In terms of the operating result, Emmi expects an increase to CHF290 million to CHF305 million at EBIT level, while the net profit margin should be between 5% and 5.5%.
Uncertainties about macroeconomic developments and accelerating inflationary pressure are likely to persist at the dairy group in 2022. Likewise the sluggish recovery in the food service sector.
Overall, the pressure on margins will increase significantly again. Against this background, consistent implementation of the strategy and further targeted investments in growth and efficiency gains remain key for the Swiss dairy group. Where it is economically unavoidable, Emmi will not be able to avoid passing on part of these additional costs.