Emmi growing in line with its strategic priorities
- Emmi achieved broad-based organic growth of 3.5% in 2023.
- Sales rose by 0.3% to CHF 4,242.4 million in 2023.
- Emmi grew in line with its strategic priorities in key markets.
Emmi Management AG / Key word(s): Sales Result Ad hoc announcement pursuant to Art. 53 LR |
Lucerne, 25 January 2024 – In a continuously challenging market environment, the Emmi Group achieved broad-based organic growth of 3.5% in 2023. This reflects the focused implementation of the strategy, the differentiated market positions and the innovative brand portfolio. Adjusted for negative currency and acquisition effects, annual sales rose by 0.3% to CHF 4,242.4 million in 2023. Emmi grew in line with its strategic priorities in the key markets of the division Americas, in Switzerland and in strategic niches such as ready-to-drink coffee with Emmi Caffè Latte. Organic growth is therefore in line with the communicated forecast for the 2023 financial year.
- Broad-based, price-driven organic sales growth of 3.5%, negative currency effect of 2.2%, negative acquisition effect of 1.0%
- Organic growth in division Switzerland (3.8%) and division Americas (5.7%), slight organic decline in division Europe (-0.4%)
- Organic growth in line with strategic priorities in key markets such as Chile, Mexico, Spain, Brazil and Switzerland, and in niches such as ready-to-drink coffee and chilled premium desserts in the USA
- Growth impacted by negative currency effects and negative acquisition effect from the disposal of Gläserne Molkerei
“Thanks to the focused execution of our strategy, our clear market focus and the outstanding commitment of our teams, we achieved solid organic sales growth in a challenging market environment
in 2023. With our passion, innovative strength and high-quality standards for our strong brands and products, we, together with our partners, have once again succeeded in creating delicious
dairy moments,” says Ricarda Demarmels, CEO of the Emmi Group.
Sales performance of the Emmi Group
in CHF million |
Sales |
Sales |
Difference |
Acquisition |
Currency |
Organic |
Division Switzerland |
1,762.0 |
1,698.1 |
3.8% |
- |
- |
3.8% |
Division Americas |
1,698.8 |
1,673.9 |
1.5% |
- |
-4.2% |
5.7% |
Division Europe |
661.4 |
730.4 |
-9.5% |
-5.8% |
-3.3% |
-0.4% |
Division Global Trade |
120.2 |
127.6 |
-5.7% |
- |
- |
-5.7% |
Group |
4,242.4 |
4,230.0 |
0.3% |
-1.0% |
-2.2% |
3.5% |
In a market environment that remained challenging and in some cases highly inflationary, the Emmi Group increased its annual sales slightly to CHF 4,242.4 million in 2023 (previous
year: CHF 4,230.0 million). This sales growth of 0.3% is made up of organic growth of 3.5%, a negative currency effect of 2.2% and a negative acquisition effect of 1.0%. This
broad-based, price-driven organic growth is in line with the Group’s own guidance for the year and reflects the focused execution of the strategy, the differentiated market positions, the
innovative brands and the diversified product portfolio. It was supported by responsible sales price adjustments.
Emmi achieved growth in line with its strategic priorities, with markets such as Chile, Mexico, Brazil and Spain showing strong growth. The strategic niches of ready-to-drink coffee with Emmi
Caffè Latte and chilled premium desserts in the USA also proved to be growth drivers for the Group. Thanks to its highly market-driven approach and strong, innovative brands, Emmi was able to
further differentiate itself in the market and systematically expand its positions in 2023.
Sales development was impacted by the challenging market environment, which continued to be defined by highly dynamic markets, high inflation rates and subdued consumer sentiment. Currency
effects due to the strong Swiss franc also had a negative impact on sales. Furthermore, there was also a negative acquisition effect from the sale of Gläserne Molkerei in mid-August 2023, which
is part of the the ongoing, consistent portfolio transformation.
Sales development by division
Division Switzerland
in CHF million |
Sales |
Sales |
Difference |
Acquisition |
Currency |
Organic |
Dairy products |
687.9 |
661.1 |
4.1% |
- |
- |
4.1% |
Cheese |
418.2 |
411.4 |
1.6% |
- |
- |
1.6% |
Fresh products |
382.1 |
362.3 |
5.5% |
- |
- |
5.5% |
Fresh cheese |
115.2 |
106.0 |
8.7% |
- |
- |
8.7% |
Powder/concentrates |
82.0 |
86.4 |
-5.0% |
- |
- |
-5.0% |
Other products/services |
76.6 |
70.9 |
8.1% |
- |
- |
8.1% |
Total |
1,762.0 |
1,698.1 |
3.8% |
- |
- |
3.8% |
The division Switzerland achieved sales of CHF 1,762.0 million (previous year: CHF 1,698.1 million) and organic growth of 3.8%, which exceeded proprietary forecasts. This
growth is attributable in particular to innovative brands such as Emmi Caffè Latte, Emmi Energy Milk, Aktifit, Luzerner Rahmkäse and Gerber. In addition, the milk price increase by the industry
organisation Milch – which benefits milk suppliers – and the recovery of the food service business following the pandemic had a positive impact on growth.
Division Americas
in CHF million |
Sales |
Sales |
Difference |
Acquisition |
Currency |
Organic |
Cheese |
635.2 |
663.0 |
-4.2% |
- |
-4.7% |
0.5% |
Dairy products |
427.1 |
414.1 |
3.2% |
- |
-4.1% |
7.3% |
Fresh products |
367.2 |
342.7 |
7.1% |
- |
-5.6% |
12.7% |
Fresh cheese |
98.7 |
96.9 |
1.8% |
- |
-1.3% |
3.1% |
Powder/concentrates |
48.5 |
40.2 |
20.7% |
- |
-3.9% |
24.6% |
Other products/services |
122.1 |
117.0 |
4.3% |
- |
0.0% |
4.3% |
Total |
1,698.8 |
1,673.9 |
1.5% |
- |
-4.2% |
5.7% |
The division Americas generated sales of CHF 1,698.8 million (previous year: CHF 1,673.9 million). Adjusted for the strong negative currency impact, principally from the
further strengthening of the Swiss franc against the US dollar, the organic growth of 5.7% was slightly below proprietary expectations. In Tunisia, sales in the dairy segment were impacted by
the prevailing milk shortage in a challenging market environment. In the USA, the biggest foreign market, the development of speciality cheeses, which are predominantly in the premium segment,
was generally subdued due to high price levels and muted consumer sentiment. Athenos, the leader in the US feta market, performed well despite this. Chilled premium desserts also performed well
in the USA. The key markets of Chile, Mexico, Spain and Brazil continued to drive growth in various segments.
Division Europe
in CHF million |
Sales |
Sales |
Difference |
Acquisition |
Currency |
Organic |
Fresh products |
362.9 |
371.8 |
-2.4% |
-1.2% |
-3.7% |
2.5% |
Cheese |
124.4 |
138.5 |
-10.2% |
-0.4% |
-3.2% |
-6.6% |
Dairy products |
55.8 |
96.8 |
-42.4% |
-38.4% |
-1.9% |
-2.1% |
Fresh cheese |
46.3 |
43.2 |
7.4% |
- |
-3.6% |
11.0% |
Powder/concentrates |
35.3 |
39.8 |
-11.6% |
-0.3% |
-3.0% |
-8.3% |
Other products/services |
36.7 |
40.3 |
-8.9% |
-0.3% |
-3.1% |
-5.5% |
Total |
661.4 |
730.4 |
-9.5% |
-5.8% |
-3.3% |
-0.4% |
In a persistently challenging European market environment with subdued consumer sentiment, the division Europe reported sales of CHF 661.4 million (previous year:
CHF 730.4 million). In addition to the negative acquisition effect of the sale of Gläserne Molkerei, currency effects had a strong negative impact on sales. Adjusted for these
effects, there was a slight organic decline in sales of 0.4%, which was somewhat below proprietary expectations. The export of Swiss cheese, particularly to Germany and the Netherlands, held
back sales growth. This was mainly due to the slowdown in consumer demand caused by price and exchange rate factors. In addition, economic uncertainties, high global inventories at distributors
and a lack of availability of raw materials had a negative impact on sales of goat’s milk powder in the Netherlands. In contrast, Emmi Caffè Latte and Dutch fresh goat’s cheese performed well.
Emmi also recorded a pleasing increase in sales of chilled premium Italian desserts in the food service business.
Division Global Trade
in CHF million |
Sales |
Sales |
Difference |
Acquisition |
Currency |
Organic |
Cheese |
64.0 |
68.2 |
-6.0% |
- |
- |
-6.0% |
Fresh products |
34.9 |
35.3 |
-1.2% |
- |
- |
-1.2% |
Powder/concentrates |
19.1 |
20.8 |
-8.2% |
- |
- |
-8.2% |
Dairy products |
1.0 |
1.4 |
-29.5% |
- |
- |
-29.5% |
Other products/services |
1.2 |
1.9 |
-35.7% |
- |
- |
-35.7% |
Total |
120.2 |
127.6 |
-5.7% |
- |
- |
-5.7% |
The division Global Trade posted sales of CHF 120.2 million (previous year: CHF 127.6 million), representing an organic decline in sales of 5.7%. The discontinuation of
business in Russia and slightly lower sales in Asia impacted the cheese business. The decline in the powder business reflects lower exports of skimmed milk powder from Switzerland.
Emmi will publish its detailed 2023 annual results and outlook for the current financial year at 7.00 a.m. on 29 February 2024.
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Contacts
Media
Simone Burgener, Media spokesperson | media@emmi.com
Investors and Analysts
Oliver Wasem, Head of Investor Relations | ir@emmi.com
About Emmi
Emmi is the leading manufacturer of high-quality dairy products in Switzerland. Its roots date back to 1907, when it was founded by dairy farmer cooperatives in the Lucerne region. With its focussed strategy, innovative products and brand concepts established beyond Switzerland, such as Emmi Caffè Latte and Kaltbach cheese, Emmi has grown into an internationally active, listed group (EMMN) with a strong local presence in 13 countries.
Emmi’s business model is traditionally based on a careful approach to nature, animals and people. In this way, Emmi creates the best dairy moments, today and for generations to come, while also contributing to value creation in rural regions. The company distributes its quality products in around 60 countries and manufactures these at 57 of its own production sites in eleven countries. With more than 9,000 employees, around 70% of whom work outside Switzerland, the Emmi Group generated sales of CHF 4.2 billion in 2023.
End of Inside Information
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Company: | Emmi Management AG |
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EQS News ID: | 1822503 |
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1822503 25-Jan-2024 CET/CEST