International Sales Boost Emmi
Swiss dairy group Emmi has reported a 9.6% rise in net sales of SFr2.98 billion (Eur2.43 billion) for 2012, helped by the continued expansion of its business outside Switzerland. Other important contributors were recent acquisitions, the performance of Emmi Caffè Latte in Switzerland and abroad (+11%), and newly launched products in Switzerland such as cheese slices ‘Chasschiibe’ and ‘Mix-it Muesli’. In organic terms (adjusted for acquisition and currency effects), net sales fell slightly by 1.3%, in line with forecasts.
Net sales in Switzerland declined from SFr1.91 billion to SFr1.84 billion. The 3.6% drop in net sales is attributable in part to the decision to forego sales from activities outside the core business, primarily unprofitable logistics services for third parties. Other factors were lower volumes in trading and food service business and substantial pressure from imports in certain segments, such as mozzarella.
In international markets, Emmi achieved a 40.4% increase in sales, to Sfr1.14.billion. Emmi Caffè Latte increased significantly in its four biggest markets in terms of sales, rising by 12% overall and witnessing the highest level of growth in Spain (approximately 50%). Among the other products to post sales growth were Le Gruyère AOC and the Kaltbach cheeses. Businesses acquired over recent years also performed very well. The cheeses produced locally in the United States by Cypress Grove Chèvre and Emmi Roth USA, and Bontà Divina desserts generated double-digit growth. In local currency terms and adjusted for acquisitions, growth amounted to 4,7 %. This is a promising result in view of the fact that, unlike in the prior-year period, there were no butter exports in the second half of 2012 to help ease the situation on the milk market and given that organic growth came primarily from cheese, fresh products and dairy products.
Emmi’s CEO Urs Riedener comments: “2012 marked an important and encouraging step in the implementation of our strategy. I am very pleased with how our business outside Switzerland has performed. This business has become an important pillar for Emmi. Another positive element is that in Switzerland we held our market position well in our core business, retail. Going forward, we are well equipped to continue performing successfully in our key markets.”
