Swiss dairy producer Emmi, which produces the Onken yoghurt brand among others, has posted a sales increase of 3.2% for full-year 2017 (+0.5% in organic terms) to CHF 3.36 billion.
EBIT at the group was up 1.6% to CHF 206 million, while net profit was 15.1% higher, at CHF 162 million.
‘Good Sales Performance’
“Emmi made up a good deal of ground in the second half of the year, boosted by the good sales performance in the US and Tunisia, a well-functioning cheese business and more favourable economic conditions,” commented Urs Riedener, chief executive at Emmi Group.
“Our earnings were also supported by the efficiency programme currently running in Switzerland and several international subsidiaries.”
The company noted that its gross profit margin fell from 36.2% the previous year, to 35.7% last year, mainly due to price pressures in the Swiss market.
However, it added that its business in the Americas and Europe improved their margins slightly, ‘despite the significant margin losses suffered in the UK market due to Brexit-related factors’.
The group made several acquisitions during the calendar year, as well as bolstering its operations around the world: in January of last year, it acquired Jackson Mitchell in the US, as well as an 80% stake in Spanish dairy firm Lácteos Caprinos.
In March, it acquired Italy-based Italian Fresh Foods, while in October it increased its stake in Mexican firm Mexideli. Last July, it offloaded its stake in Italian company Venchiaredo.
Outlook
Looking ahead to the coming year, Emmi said that it expects its Tunisian and US operations to experience an increase in demand, while its Chilean operations should also see a recovery.
Closer to home, Emmi said that while the Eurozone economy is expected to grow, the group cited ‘several inhibiting factors’, including ‘continued strong competition, the consequences of Brexit and the performance of the British pound’.
However, it added that it expects its European business to post a ‘positive contribution’ to overall sales performance.
Overall, Emmi expects organic sales growth almost in line with its medium-term forecast in 2018.
About Emmi Group
In Switzerland, Emmi Group focuses on the development, production and marketing of a full range of dairy and fresh products as well as the production, ageing and trade of mainly Swiss cheeses.
Outside Switzerland, Emmi concentrates on brand concepts and specialities in both established and emerging markets, with particular focus on lifestyle, convenience and health products.
The company also positions itself as the leading international producer of Swiss cheese.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
