Solid First Half Performance By Emmi
Helped by rising international sales, Swiss dairy group Emmi has increased net profit by 21.5% to SFr39.9m (Eur31m) on sales down by 0.5% to SFr1.27b for the first half of 2010. The profit margin was 3.1 % and Emmi anticipates stable sales for the second half of the year, with the margin remaining at around 3 %.
Net sales in the Swiss market fell by 2.8 % to SFr932.2m. The fall was lower than expected and was primarily due to reductions in the price for raw milk. However, sales volumes in the Swiss market remained at around the same level as the prior year.
Emmi achieved a 6.5 % increase in sales in its international business to SFr343.0m. At constant currencies, the international markets actually posted growth of 9.4 %, while volume growth was 7.2 %. The cheese business in the US developed positively and Roth Kase USA, acquired by Emmi in 2009, performed well.
Emmi’s strategy is based on three pillars – a strong domestic market, international growth and rigorous cost management. The acquisition of the Californian cheese specialist Cypress Grove Chevre, announced on 20th August, and the total acquisition of CASP (Contract Aseptic & Specialty Packaging) in New York, further strengthens Emmi’s position in its largest foreign market. Investments made in the first half of the year, such as the takeover of Fromalp in Zollikofen on 1st July, and the acquisition of a minority stake in the Italian fresh cheese specialist Venchiaredo, will also have an impact in the months ahead.
Looking forward, Emmi anticipates stable sales in the Swiss market and the international business to see sales increase by 8-10 % including acquisitions, or 6-8 % from organic growth.
