Emmi Exceed Sales and Earnings Targets
Acquisitions, encouraging international growth and strict cost management have helped Emmi, the Swiss dairy group, to increase net profit by 14.3% to SFr86.1m (Eur67m) on net sales ahead by 2.5% to SFr2.68b in its 2010 financial year. EBIT grew by 24.5% to SFr135.8m and the EBIT margin improved from 4.2% to 5.1%.
“We have proven that we have a robust position in our domestic and key international markets,” comments Urs Riedener, chief executive of Emmi. “The growth in profit is an important basis to enable investment in an Emmi that is successful over the long term.”
Net sales in Switzerland rose by 0.4% to SFr1.95b. Factors such as the strong performance of brand concepts including Emmi Caffe Latte, Kaltbach and Luzerner, as well as the acquisitions of Fromalp and Nutrifrais, had a positive impact.
Emmi achieved an 8.4% increase in sales in international markets to SFr731.8m. The encouraging performance of Emmi Roth USA, growing exports of cheese and Emmi Caffe Latte, the collaboration with Venchiaredo and the expansion of the Trentinalatte brand in Italy as well as the acquisition of Fromalp made a significant contribution to this figure.
Emmi expects consumer sentiment in Switzerland as well as in the US and Germany – its two most important international markets – to remain stable in 2011.
Emmi is projecting group-wide sales growth of between 3% and 5% in 2011. In Switzerland, it expects an increase of 0% to 3%, and on international markets, growth of between 10% and 15%. These figures include the impact of acquisitions, with Fromalp and Onken being particularly relevant. Profitability is predicted to remain at a similar level to 2010, with EBIT of between SFr120-140 million and a net profit margin of around 3%.
In 2011, Emmi will continue to invest in further expanding its international business and strengthening its domestic market. Target organic volume growth in its international markets in the medium to long term is likely to remain at 6 to 8%, while the net profit margin will probably be in the range of 2.5 to 3.5%.
