Emmi generated net sales of CHF 4,230.0 million in 2022 (previous year: CHF 3,911.9 million) and growth of 8.1%. This consists of organic growth of 7.0%, a positive acquisition effect of 2.1% and a negative foreign currency effect of 1.0%. The broad-based organic growth exceeded our own expectations for the year as a whole (5% to 6%). In a year characterised by strong inflationary developments and markedly rising input costs along the entire value chain, sales growth was also heavily price-driven. The international business continued to exhibit strong momentum, with organic growth of 13.1% in the business division Americas and 6.7% in the business division Europe. With organic growth of 2.9%, the performance of the business division Switzerland was also positive.
Encouragingly, in addition to the key markets of Switzerland and the USA, the growth markets of Brazil and Chile also made a significant contribution to organic growth. The Swiss home market grew in particular in the food service and industrial businesses, after these had declined in the previous years due to the pandemic. Moreover, differentiated brand concepts and price effects fuelled growth in Switzerland. In the USA, the speciality desserts of Emmi Dessert USA, which was acquired in 2020, proved to be important growth drivers. Locally produced speciality cheeses as well as those imported from Switzerland also made an important contribution to organic growth. In Brazil, business in the basic segment with UHT milk and fresh cheese gave a sizeable boost to growth, while in Chile the milk business had a positive impact. In the division Europe, the sustained growth in the strategic niches with innovative Italian speciality desserts and the successful Emmi Caffè Latte brand concept are particularly noteworthy.
Thanks to leading market positions as well as differentiated brands and innovations, the strategic niches experienced strong growth. The continued strong sales performance of Emmi Caffè Latte in Switzerland and in all European markets is especially pleasing. Sales in the speciality cheese segment recorded another increase despite the higher at-home consumption due to the pandemic in the previous year. However, exchange rates and price effects negatively impacted the demand for Swiss speciality cheeses in Europe. Sales of chilled premium desserts produced in Italy and the USA were impressive, generating high growth in all sales markets. In the segment of plant-based milk alternatives, both sales in the USA and growth of the innovative vegan brand Beleaf in Switzerland made good progress.
The positive acquisition effect was due to the acquisition of the leading feta business of Athenos in the strategic area of speciality cheeses in the USA, Emmi’s most important international market (1 December 2021).
Internal shifts in the distribution channels of certain customers also resulted in acquisition or divestment effects in the divisions Global Trade and Europe. However, these shifts between individual divisions did not have any impact on the Group.
Since 1 January 2022, the companies in France have been part of the division Europe (previously division Americas). For better comparability, the prior-year figures in the following sales tables of the two divisions have been adjusted accordingly.
Developments in the divisions Switzerland, Americas, Europe and Global Trade are explained below.
|
in CHF million |
Sales 2022 |
Sales 2021 |
Difference 2022/2021 |
Acquisition effect |
Organic growth |
|
Dairy products |
661.1 |
668.6 |
-1.1% |
– |
-1.1% |
|
Cheese |
411.4 |
416.2 |
-1.2% |
– |
-1.2% |
|
Fresh products |
362.3 |
339.2 |
6.8% |
– |
6.8% |
|
Fresh cheese |
106.0 |
101.4 |
4.6% |
– |
4.6% |
|
Powder/concentrates |
86.4 |
60.8 |
42.0% |
– |
42.0% |
|
Other products/services |
70.9 |
63.6 |
11.5% |
– |
11.5% |
|
Total Switzerland |
1,698.1 |
1,649.8 |
2.9% |
– |
2.9% |
The division Switzerland generated sales of CHF 1,698.1 million in 2022 (previous year: CHF 1,649.8 million), which corresponds to growth of 2.9%. Growth accelerated in the second half of the year and clearly exceeding our own expectations for the full year (0.5% to 1.5%). Necessary price increases were mainly responsible for this growth, partly as a consequence of the increase in milk prices benefitting milk producers. The recovery of the food service and industrial businesses after the pandemic-related declines in previous years also reinforced growth. From a brand perspective, the growth of Emmi Caffè Latte remained strong. Other differentiated brand concepts such as Emmi Energy Milk and Luzerner Rahmkäse also performed well. These positive effects were offset by the expected decline in retail volumes, reflecting a normalisation of the previous years which were marked by the pandemic. The division Switzerland accounted for 40.1% of Group sales (previous year: 42.2%).
The dairy products segment (milk, cream and butter) recorded an organic decline in sales of 1.1%. This development, driven by lower retail sales of milk, could only be partially compensated by positive price effects and the further recovery of the food service business.
The cheese segment experienced an organic decline in sales of 1.2%. This decrease primarily affected retail sales of traditional cheeses, which had recorded exceptional growth in the previous year due to the pandemic. The decline was partially compensated by higher sales prices, which benefit producers in the form of higher milk prices. In this difficult environment, the continued growth of Luzerner Rahmkäse warrants positive mention.
The fresh products segment grew by 6.8% in organic terms, proving to be a major growth driver of the division. The branded products Emmi Caffè Latte and Emmi Energy Milk in particular continued to enjoy great popularity and recorded correspondingly strong gains. Ice cream as part of the food service business also saw an increase in sales.
In addition, the fresh cheese segment reported pleasing growth of 4.6%, primarily driven by sales of mozzarella in the food service business. This sales growth also compensated for the decline in retail sales of quark.
The strong growth of 42.0% in the powder/concentrates segment is based on the higher sales volumes of milk powder to industrial customers following the heavy losses in previous years due to the pandemic.
The other products/services segment also experienced strong organic growth of 11.5%. This pleasing result was thanks to the positive momentum in the plant-based products business, where the products of the vegan brand Beleaf, among others, continued to grow.
|
in CHF million |
Sales 2022 |
Sales 2021 |
Difference 2022/2021 |
Acquisition effect |
Currency effect |
Organic growth |
|
Cheese |
663.0 |
531.3 |
24.8% |
15.3% |
3.9% |
5.6% |
|
Dairy products |
414.1 |
381.8 |
8.4% |
– |
-3.5% |
11.9% |
|
Fresh products |
342.7 |
288.8 |
18.6% |
– |
-0.8% |
19.4% |
|
Fresh cheese |
96.9 |
71.7 |
35.2% |
– |
9.6% |
25.6% |
|
Powder/concentrates |
40.2 |
32.2 |
25.0% |
– |
9.6% |
15.4% |
|
Other products/services |
117.0 |
88.4 |
32.3% |
0.4% |
0.4% |
31.5% |
|
Total Americas |
1,673.9 |
1,394.2 |
20.1% |
5.8% |
1.2% |
13.1% |
The division Americas includes the Emmi Group companies in the USA, Brazil, Spain, Chile, Tunisia, Mexico and Canada. Since 1 January 2022, the companies in France have been part of the division Europe (previously division Americas). For better comparability, the prior-year figures have been restated accordingly.
Sales in the division Americas increased from CHF 1,394.2 million in the previous year to CHF 1,673.9 million. The overall growth of 20.1% was driven by the high organic growth of 13.1% and the acquisition of the Athenos feta cheese business. Compared to the first half of the year, growth continued to accelerate in the second half of the year and thus exceeded our own expectations (10% to 12%). Growth was broad-based and driven by the US companies as well as the companies in Brazil, Spain and Mexico. The division Americas accounted for 39.6% of Group sales (previous year: 35.6%).
Adjusted for the acquisition effect from the Athenos business acquisition in the USA and the positive currency effects, the cheese segment recorded organic growth of 5.6%. A large part of this growth stems from the USA, with an increase in both locally produced and imported speciality cheeses from Switzerland. Sales in Canada and Brazil also performed well, as did the trading business in Mexico. However, the decline in sales in Chile due to distribution difficulties hampered performance in this segment.
The dairy products segment recorded organic growth of 11.9%. A key driver of the positive performance was Brazil and the new production facility for UHT milk that was commissioned there. Spain and Chile with cow’s milk and Meyenberg in California with goat’s milk also made a significant, positive contribution to organic growth. The decline in sales in Tunisia due to a shortage of milk, by contrast, restricted growth in this segment.
Organic growth of 19.4% was achieved in the fresh products segment. The majority of this growth was driven by locally produced speciality desserts of Emmi Dessert USA, which was acquired in 2020. The yogurt business in Tunisia, Spain and Brazil also made a positive contribution to performance, while Emmi Caffè Latte in Spain continued its pleasing growth trajectory.
The growth in the segments for fresh cheese (organic growth: 25.6%) and powder/concentrates (organic growth: 15.4%) is attributable to increased sales in Brazil. In the other products/services segment, the organic growth of 31.5% is due to the positive development of Mexideli’s trading business and increased sales of plant-based products in the USA.
|
in CHF million |
Sales 2022 |
Sales 2021 |
Difference 2022/2021 |
Acquisition effect |
Currency effect |
Organic growth |
|
Fresh products |
371.8 |
369.5 |
0.6% |
– |
-7.5% |
8.1% |
|
Cheese |
138.5 |
170.5 |
-18.8% |
-6.8% |
-6.1% |
-5.9% |
|
Dairy products |
96.8 |
94.8 |
2.2% |
– |
-7.8% |
10.0% |
|
Fresh cheese |
43.2 |
38.4 |
12.3% |
– |
-8.6% |
20.9% |
|
Powder/concentrates |
39.8 |
37.3 |
6.8% |
– |
-8.2% |
15.0% |
|
Other products/services |
40.3 |
35.9 |
12.2% |
– |
-8.5% |
20.7% |
|
Total Europe |
730.4 |
746.4 |
-2.1% |
-1.5% |
-7.3% |
6.7% |
The division Europe includes the Emmi Group companies in Italy, Germany, the Netherlands, France, the UK and Austria. Since 1 January 2022, the companies in France have been part of the division Europe (previously division Americas). For better comparability, the prior-year figures have been restated accordingly.
The division Europe generated sales of CHF 730.4 million, a decrease of 2.1% compared to the previous year (CHF 746.4 million). Adjusted for acquisition and currency effects, organic growth of 6.7% resulted, which is in line with our own forecast for the year as a whole (6% to 8%). Speciality desserts from Italy and Emmi Caffè Latte once again made a significant contribution to organic growth in all European markets. The strongly negative currency effects resulted from the depreciation of the euro and the British pound against the Swiss franc. The equally negative acquisition effects were driven by shifts in the distribution channels of certain customers to the division Global Trade. The division Europe accounted for 17.3% of Group sales (previous year: 19.1%).
The largest segment in terms of sales, fresh products, achieved pleasing organic growth of 8.1%. Once again, the growth drivers were innovative Italian speciality desserts and the product range of Emmi Caffè Latte, with significant growth across all European markets.
The cheese segment posted an organic decline of 5.9%. This mainly relates to speciality cheeses imported from Switzerland and sold in Germany and the Netherlands, which saw a normalisation in sales compared to the high volumes of the prior-year period influenced by the pandemic, particularly at cheese counters, and reinforced by signs of a slowdown in demand fuelled by prices and exchange rates.
The organic increase in sales of 10.0% in the dairy products segment reflects the positive sales performance of organic milk produced at Gläserne Molkerei in Germany.
The fresh cheese segment recorded high organic growth of 20.9%, supported by the recovery of fresh goat’s cheese sales at Bettinehoeve in the Netherlands. During the pandemic, sales had temporarily fallen due to the high share of sales in the food service sector. Sales of goat’s milk powder from the Netherlands also increased, resulting in organic growth of 15.0% in the powder/concentrates segment. The organic growth of 20.7% in the other products/services segment was driven primarily by non-dairy products.
|
in CHF million |
Sales 2022 |
Sales 2021 |
Difference 2022/2021 |
Acquisition effect |
Organic growth |
|
Cheese |
68.2 |
55.2 |
23.5% |
20.9% |
2.6% |
|
Fresh products |
35.3 |
34.8 |
1.6% |
– |
1.6% |
|
Powder/concentrates |
20.8 |
26.6 |
-21.9% |
– |
-21.9% |
|
Dairy products |
1.4 |
2.5 |
-45.0% |
– |
-45.0% |
|
Other products/services |
1.9 |
2.3 |
-15.8% |
– |
-15.8% |
|
Total Global Trade |
127.6 |
121.4 |
5.1% |
9.5% |
-4.4% |
The division Global Trade primarily comprises direct sales from Switzerland to customers in countries where Emmi has no subsidiaries. These include the Asian and Eastern European markets, most South American countries and the Arabian Peninsula. The division Global Trade accounted for 3.0% of Group sales (previous year: 3.1%).
Sales in the division Global Trade amounted to CHF 127.6 million, compared to CHF 121.4 million in the previous year, growing by 5.1%. Adjusted for acquisition effects, which resulted from internal shifts in the distribution channels of certain customers from the division Europe to the division Global Trade, the result was an organic decline of 4.4%.
The cheese segment recorded organic growth of 2.6% despite the discontinuation of deliveries to Russia. The sales lost from Russia were compensated by exports to other European countries. The organic growth of 1.6% in the fresh products segment was primarily attributable to growing sales of yogurt in Asia. The decrease of 21.9% in the powder/concentrates segment reflects the lower exports of surpluses of skimmed-milk powder which had been necessary in the same period last year due to weaker domestic sales.
Gross profit increased by CHF 53.2 million to CHF 1,483.1 million in the year under review (previous year: CHF 1,429.9 million). While organic growth and the acquisition of Athenos in the USA in December 2021 had a positive impact on gross profit, overall negative foreign currency effects and in particular the lower gross profit margin of 35.1% compared to the previous year had a negative impact (previous year: 36.6%). This margin decline is due to a marked inflation-driven increase in input costs, which became even more expensive due to the war in Ukraine and have only been partially offset by sales price increases so far. The negative margin development was additionally mitigated by further strategic progress in the transformation of the company and product portfolio, as well as by the intensified measures to increase productivity and in the area of procurement.
The current economic disruptions have triggered a series of structural market changes. These have hit the organic dairy product market in Germany particularly hard. This development placed a further strain on the business performance of Gläserne Molkerei, clouding its future prospects over the medium term. This resulted in an impairment of non-current assets of CHF 13.1 million, which is included in “Depreciation on property, plant and equipment” at CHF 13.0 million and “Amortisation on intangible assets” at CHF 0.1 million. Adjusted for this non-recurring effect, EBIT and EBT increased by CHF 13.1 million, while profit including minority interests and net profit increased by CHF 11.8 million.
No significant non-recurring effects were recorded in the previous year.
Operating expenses rose by CHF 68.5 million to CHF 1,112.8 million in the year under review (previous year: CHF 1,044.3 million). In relation to sales, however, these decreased from 26.7% in the previous year to 26.3%, thus compensating for part of the loss of margin in gross profit.
Personnel expenses were CHF 556.5 million in the year under review, compared to CHF 534.8 million in the previous year. The increase of CHF 21.7 million resulted primarily from the worldwide rise in wage costs as a consequence of inflationary developments. Nevertheless, personnel expenses increased less sharply compared to sales (from 13.7% in the previous year to 13.2%), which had a correspondingly supportive effect on margins.
Other operating expenses were CHF 556.3 million in the year under review compared with CHF 509.5 million in the previous year, up CHF 46.8 million or 9.2%. In relation to sales, this also represents a slight increase from 13.0% in the previous year to 13.1%. A significant increase, both in absolute terms and in relation to sales, resulted in particular from higher logistics costs as well as the costs of energy and operating materials. Higher prices due to inflation combined with the continued instability of supply chains caused logistics costs to rise by a staggering CHF 31.2 million or 24.0% to CHF 161.5 million. The cost of electricity and fuel also rose significantly, driving up the cost of energy and operating materials to CHF 95.0 million, an increase of CHF 13.5 million or 16.5%. Accumulated marketing and sales-related expenses amounted to CHF 130.1 million, compared to CHF 139.1 million in the previous year, displaying a contrary and thus margin-supporting development. This decline, which stems primarily from the first half of the year, is due to a deliberate focus in terms of marketing activities on established brand concepts such as Emmi Caffè Latte.
Other operating income amounted to CHF 9.0 million in the year under review, down slightly on the previous year figure of CHF 9.2 million.
As a consequence of this development, earnings before interest, taxes, depreciation and amortisation (EBITDA) in the year under review amounted to CHF 379.3 million. Compared to the previous year (CHF 394.7 million), this represents a decrease of CHF 15.4 million. The EBITDA margin therefore fell from 10.1% in the previous year to 9.0%.
Depreciation and amortisation increased by CHF 15.7 million in the year under review, from CHF 110.7 million to CHF 126.4 million. Adjusted for the impairment at Gläserne Molkerei of CHF 13.1 million, depreciation and amortisation in the year under review amounted to CHF 113.3 million, which corresponds to an adjusted increase of CHF 2.6 million.
Earnings before interest and taxes (EBIT) came in at CHF 253.0 million in the year under review, down CHF 31.1 million on the previous year. EBIT adjusted for the impairment at Gläserne Molkerei amounted to CHF 266.1 million. Therefore, the adjusted deviation from the previous year was CHF 18.0 million. The resulting EBIT margin of 6.0% (or adjusted 6.3%) was accordingly also below the previous year’s margin of 7.3%.
Following a profit of CHF 3.7 million in the previous year, income from associates and joint ventures recorded a loss of CHF 0.1 million.
The financial result (net financial expenses) was CHF 23.3 million, compared to CHF 11.9 million in the previous year. On the one hand, this increase reflects a CHF 5.3 million lower foreign currency result due to higher hedging costs, and on the other, a CHF 7.7 million higher net interest expense. This increased due to the bond issued in the previous year, the refinancing of the euro promissory note in the year under review, as well as the generally increased financing costs for various local financing arrangements.
Income taxes amounted to CHF 38.9 million, compared to CHF 45.2 million in the previous year. Adjusted for the positive tax effect from the impairment at Gläserne Molkerei, tax expenses amounted to CHF 40.3 million in the year under review. The tax rate of 17.0% (or adjusted 16.6%) thus increased slightly compared to the previous year (16.4%).
Profit including minority interests was CHF 190.6 million. Compared to CHF 230.7 million in the previous year, this represents a decrease of CHF 40.1 million. The decrease on the basis of adjusted figures in the year under review was CHF 28.3 million.
Minority interests in profit recorded a decline from CHF 13.9 million in the previous year to CHF 8.1 million in the year under review, which is due to the buy-out of minority interests in the year under review as well as lower results from companies with minority interests.
The resulting net profit of CHF 182.5 million thus came in CHF 34.2 million lower than the previous year (CHF 216.7 million). Adjusted for the impairment at Gläserne Molkerei, the net profit for the year under review was CHF 194.3 million and the adjusted deviation from the previous year was CHF 22.4 million. The net profit margin was 4.3% (or adjusted 4.6%) compared to 5.5% in the previous year.