FDBusiness.com

Emmi increased its sales by 1.1% to SFr3.494 billion (€3.275 billion) in 2019 and achieved organic growth of 2.2 %. The organic revenue growth was broad-based across all business divisions and is in the upper third of the target range of 1.5% to 2.5%, after being revised downwards from 2% to 3% when the company reported its half-year results. Growth drivers included strategic niche markets such as Italian speciality desserts and goat’s milk products, branded products such as Emmi Caffè Latte and the growth markets of Latin America and North Africa.

EBIT (earnings before interest and taxes) amounted to SFr217.8 million, up slightly from the previous year’s SFr216.7 million, and was also within the range of expectations. The EBIT margin was 6.2% (previous year 6.3 %). This resulted in a net profit of SFr166.2 million (previous year adjusted for the non-recurring effect from the sale of the minority stake in “siggi’s” was SFr175.5 million).

Urs Riedener, chief executive of Emmi Group.

Emmi took major steps forwards in the implementation of its strategy in 2019, further strengthening its position in growth markets outside of Europe and making investments in promising niches. The former was achieved in particular by increasing the stake in LaticíniosPorto Alegre in Brazil and the merger of Surlatand Quillayes in Chile – both of them strengthened the Latin American business as well as the brand business. Measures boosting Emmi’s position in attractive strategic niche markets included the stake in Austrian goat’s and sheep’s milk processor Leeb, the acquisition of Italian dessert company Pasticceria Quadrifoglio and the purchase of the blue cheese production site in the US.

Urs Riedener, chief executive of Emmi Group, comments: “We are generating solid revenue; thanks to our various acquisitions, we are poised to achieve major growth in 2020.”

For 2020, Emmi expects organic revenue growth in line with its medium-term forecast (2% to 3%) and a further improvement in EBIT.