Encouraging First Half Performance From Emmi
Emmi has reported a 3.8% decline in sales to SFr1.563 billion (€1.447 billion) in the first half of 2015 with revenue down organically by 1.7% as the Swiss dairy group coped well with the negative trend of the euro. However, Emmi exceeded its profit targets. Adjusted EBIT was up by 14.3% to SFr84.9 million and the adjusted EBIT margin was improved from 4.6% to 5.4 %. The adjusted net profit was SFr46.6 million – up by 3.1% – with adjusted net profit margin advancing from 2.8% to 3.0 %.
Emmi’s Switzerland and Americas business divisions performed in accordance with forecasts. The Europe business division performed better than expected.
Urs Riedener, chief executive of Emmi, comments: “This encouraging performance is mainly due to the range of measures that have been consistently applied since the beginning of the year, as well as enhanced earnings in the Europe and Americas business divisions. Our goal in the second half of the year is to keep the decline in sales within reasonable limits – particularly in Switzerland.”
Emmi expects the market situation to remain challenging for the rest of 2015. In Switzerland, higher retail tourism and import pressures, the fierce price competition in the industrial business, and declining consumption in the food service sector will be noticeable. The company anticipates that the negative effects of the weak euro on sales in Switzerland might be even greater in the second half of the year.
In the business division Americas, good organic growth is anticipated, especially in Tunisia, while development in Chile and France is likely to remain muted.
In the business division Europe, the northern European markets will be more stable than those in southern Europe. The pressure will be greatest in economically stricken Italy and price-sensitive Germany, while the UK will benefit as a non-member of the eurozone.
At group level, Emmi is adhering to its sales target and still expects an organic decrease in sales of -3 % to -2 %. Emmi anticipates an EBIT of between SFr170 million and SFr180 million (previously SFr150 million to SFr160 million). The net profit margin is expected to be slightly over 3 %.
