In 2023 Emmi generated organic growth of 3.5% and net sales of CHF 4,242.4 million. This represented a slight increase of 0.3% on the previous year’s figure of CHF 4,230.0 million. This overall growth consists of organic growth of 3.5%, a negative acquisition effect of 1.0% and a negative foreign currency effect of 2.2%. Organic growth is therefore within the range of our own expectations for the year as a whole (3% to 4%), which were confirmed at the end of the first half of the year. Compared to the previous year’s high organic growth, which was heavily affected by inflationary developments, organic growth during the year under review was still heavily price-driven, although in line with expectations flattened out during the second half of the year due to the fading away of price effects.
Organic growth on the home market in Switzerland amounted to 3.8%, thereby outperforming our expectations. Alongside price effects, this growth is attributable in particular to proven brand concepts such as Emmi Caffè Latte, Emmi Energy Milk and Aktifit in the fresh products segment and Luzerner Rahmkäse and Gerber in the cheese segment. The division Americas achieved organic growth of 5.7%, which was slightly below our expectations. Sales development in this division was held back in particular by performance in the US, the most significant foreign market, in the cheese segment. Conversely, companies in Chile, Brazil, Mexico and Spain made a positive contribution, with each achieving significant growth. The division Europe also performed below our expectations, posting an organic decline in sales of 0.4% due to the challenging economic environment. In particular the Swiss cheese exports and the goat’s milk powder business in the Netherlands held back sales development in the division Europe. On the other hand, Emmi Caffè Latte, chilled premium Italian desserts and Dutch fresh goat’s cheese made a positive contribution to performance.
Thanks to leading market positions and differentiated brands and innovations, the strategic niche of ready-to-drink coffee experienced further strong growth. The continued strong sales performance of Emmi Caffè Latte in Spain, Switzerland and in division Europe’s key markets is especially pleasing. Sales in the speciality cheeses segment increased further, although exchange rate and price effects had a tangibly negative effect on foreign demand for Swiss speciality cheeses. Among chilled premium desserts, in particular Emmi Dessert USA stood out, once again posting satisfactory growth. On the other hand, sales of plant-based milk alternatives dropped overall in the face of challenging market conditions.
The negative acquisition effect is due to the divestment of Gläserne Molkerei (Germany, 14 August 2023).
Developments in the divisions Switzerland, Americas, Europe and Global Trade are explained below.
|
in CHF million |
Sales 2023 |
Sales 2022 |
Difference 2023/2022 |
Acquisition effect |
Organic growth |
|
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 Switzerland |
1,762.0 |
1,698.1 |
3.8% |
– |
3.8% |
The Switzerland division achieved sales of CHF 1,762.0 million in 2023 (previous year: CHF 1,698.1 million), corresponding to organic growth of 3.8%. Growth thus flattened out over the second half of the year in line with expectations, although exceeded our own expectations for the year as a whole (2.0% to 3.0%). Growth was generated by, inter alia, brand concepts such as Emmi Caffè Latte, Emmi Energy Milk and Aktifit in the fresh products segment and Luzerner Rahmkäse and Gerber in the cheese segment. Growth was also boosted by the continuing recovery in the food service sector and price effects. The division Switzerland accounted for 41.5% of Group sales (previous year: 40.1%).
Sales in the dairy products segment (milk, cream, butter) rose by 4.1%, reflecting not only price effects but also the highly dynamic food service sector as well as strategic retail trade channels. Emmi also performed strongly with new products such as organic milk in reusable glass bottles and milk packaging depicting Disney characters.
The cheese segment posted organic growth of 1.6%. Most of the increase related to the processed cheese segment, where in particular Gerber-brand products have been becoming increasingly popular. Despite the challenging environment in the natural cheese segment, the further growth achieved by Luzerner Rahmkäse was a positive note.
The fresh products segment grew pleasingly by 5.5% in organic terms, proving to be a major growth driver of the division. Thanks to various innovations and new products, the branded products Emmi Caffè Latte, Emmi Energy Milk and Aktifit in particular continued to enjoy great popularity and recorded correspondingly strong gains.
In addition, the fresh cheese segment reported pleasing growth of 8.7%, primarily driven by sales of mozzarella and quark in the retail and food service business.
The decline in sales by 5.0% in the powder/concentrates segment reflects the lower sales of milk powder to industrial customers.
The other products/services segment experienced strong organic growth of 8.1%. This is due to higher revenue from services and trading goods for the food service sector.
|
in CHF million |
Sales 2023 |
Sales 2022 |
Difference 2023/2022 |
Acquisition effect |
Currency effect |
Organic growth |
|
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 Americas |
1,698.8 |
1,673.9 |
1.5% |
– |
-4.2% |
5.7% |
The division Americas includes the Emmi Group companies in the US, Brazil, Spain, Chile, Tunisia, Mexico and Canada.
The division Americas achieved organic sales growth during the reporting period of 5.7% and sales of CHF 1,698.8 million. This represents an overall increase in sales of 1.5% compared to the previous year (CHF 1,673.9 million). Strongly negative currency effects, due in particular to the devaluation of the US dollar against the Swiss franc, had a negative impact on performance, reducing it by 4.2%. The organic sales growth of 5.7% was slightly below our expectations (6% to 8%). Group companies in Chile, Brazil, Mexico and Spain stood out as drivers of growth for the division. The division Americas accounted for 40.1% of Group sales (previous year: 39.6%).
The largest segment in terms of sales, cheese, achieved only moderate organic growth of 0.5%. In particular, business in the US posted negative performance in terms of both locally produced cheese and speciality cheese imported from Switzerland. On the other hand, trading business in Canada and Mexico grew, as did sales of locally produced cheese in Chile and Brazil.
The dairy products segment recorded organic growth of 7.3%. This development was driven primarily by business in Chile, which improved significantly following the previous year’s operational distribution difficulties. Emmi also achieved significant growth in Spain with cow’s milk and in the US with goat’s milk under the Meyenberg brand. The decline in sales in Tunisia due to a shortage of milk, by contrast, restricted growth in this segment.
Organic growth of 12.7% was achieved in the fresh products segment. The largest contribution came from Spain where, alongside yogurt, further significant growth was pleasingly achieved also by Emmi Caffè Latte. Moreover, the speciality desserts of Emmi Dessert USA and yogurt and yogurt drinks in Chile, Tunisia and Brazil contributed strongly to organic growth in this segment.
The organic growth of 3.1% in the fresh cheese segment resulted primarily from Mexideli’s trading business and locally produced fresh cheese under the Green Valley brand in California, while growth in this segment was held back by the performance of the mozzarella business in Brazil. On the other hand, Brazil was the main driver of organic growth of 24.6% in the powder/concentrates segment. Organic growth of 4.3% in the other products/services segment is primarily due to the positive development in Mexideli’s trading business.
|
in CHF million |
Sales 2023 |
Sales 2022 |
Difference 2023/2022 |
Acquisition effect |
Currency effect |
Organic growth |
|
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 Europe |
661.4 |
730.4 |
-9.5% |
-5.8% |
-3.3% |
-0.4% |
The division Europe includes the Emmi Group companies in Italy, Germany, the Netherlands, France, the UK and Austria.
The division Europe suffered a slight organic decline in sales of 0.4% during the reporting period with sales of CHF 661.4 million, representing an overall decline of 9.5% (CHF 730.4 million) compared to the previous year. In addition to the divestment effect of 5.8% resulting from the disposal of Gläserne Molkerei, currency effects had a negative impact of 3.3% on sales. As a result of the organic decline in sales of 0.4%, the division Europe fell just short of its forecast for the year as a whole (0% to 1%). The organic decline in sales is primarily attributable to the cheese segment, while the fresh products and fresh cheese segments were only partially able to make up for this decline. The division Europe accounted for 15.6% of Group sales (previous year: 17.3%).
The largest segment in terms of sales, fresh products, achieved organic growth of 2.5%. Once again, the growth drivers were innovative speciality desserts from Italy and the product range of Emmi Caffè Latte, with significant growth in Germany, the UK and Austria.
The cheese segment posted an organic decline of 6.6%. The decline affected mainly Germany and the Netherlands with speciality cheeses imported from Switzerland. This development was due primarily to the slowdown in consumer demand caused by price and exchange rates.
Sales in the dairy products segment fell by a total of 42.4% as a result of the divestment of Gläserne Molkerei. After adjustment for acquisition and currency effects, there was still an organic decline of 2.1% resulting from sales of milk and cream in Austria.
In the fresh cheese segment, business relating to fresh goat’s cheese in the Netherlands continued to develop positively, resulting in significant organic growth of 11.0%.
The sales achieved from powder/concentrates fell in organic terms by 8.3% as a result of falling sales of goat’s milk powder in the Netherlands. This negative development was fuelled by economic uncertainties, globally high inventory held by distributors and a shortage of raw materials.
The organic decline in sales by 5.5% in the other products/services segment was due primarily to non-dairy products in Austria, Germany and Italy.
|
in CHF million |
Sales 2023 |
Sales 2022 |
Difference 2023/2022 |
Acquisition effect |
Currency effect |
Organic growth |
|
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 Global Trade |
120.2 |
127.6 |
-5.7% |
– |
– |
-5.7% |
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 2.8% of Group sales (previous year: 3.0%).
Sales of the division Global Trade amounted to CHF 120.2 million. Compared to the previous year’s figure of CHF 127.6 million, this represents an organic decline in sales of 5.7%.
The organic decline in sales by 6.0% in the cheese segment is mainly attributable to lower sales in Asia coupled with the discontinuation of deliveries to Russia during the first half of 2022. The fresh products segment fell by 1.2%, primarily driven by the negative development of yogurt in Asia and of yogurt drinks in northern Europe. The decline by 8.2% in the powder/concentrates segment reflects lower exports of skimmed milk powder from Switzerland.
The gross profit increased during the year under review by CHF 72.1 million to CHF 1,555.2 million (previous year: CHF 1,483.1 million) despite significant negative currency effects in conjunction with the negative effect resulting from the disposal of Gläserne Molkerei. Alongside organic growth, this increase reflects primarily the higher gross profit margin of 36.7%, which was significantly higher than the previous year’s figure (35.1%). Following the temporary margin decline in the previous year, the increase in the margin was driven above all by operational improvements by individual foreign companies such as Quillayes Surlat in Chile and dessert companies in the US and Italy, as well as the continual transformation of the Group’s portfolio. Moreover, measures to increase productivity and in the area of procurement once again had a positive effect, along with delayed effects of sales price increases.
As part of the process of ongoing portfolio transformation and a focus on profitable growth segments, during the year under review Emmi sold the 100%-owned Gläserne Molkerei and the minority interest of 25% in the Italian Ambrosi S.p.A., which had a significant impact on the income statement.
The divestment of Gläserne Molkerei resulted in a pre-tax loss of CHF 37.2 million, which is reported in “Other operating expenses” and had an impact in this amount on the figures for EBITDA, EBIT and EBT. After taking account of the positive tax effect of CHF 8.3 million at the selling Swiss company, this transaction had a net impact of CHF 28.9 million on profit including minority interests and on net profit. Disregarding the positive tax effect, the transaction also resulted in a net outflow of cash and cash equivalents of CHF 11.5 million.
The sale of the minority interest in Ambrosi S.p.A. resulted in a pre-tax profit of CHF 3.0 million, which is recorded under “Income from associates and joint ventures”, and had a corresponding impact on EBT. After accounting for the tax effect, this left a gain of CHF 2.8 million under profit including minority interests and net profit. The net inflow from this transaction in terms of cash and cash equivalents amounted to CHF 27.1 million.
The previous year’s income statement was significantly impacted by the impairment of non-current assets at Gläserne Molkerei totalling CHF 13.1 million. This amounted to CHF 13.0 million for the item “Depreciation of property, plant and equipment” and to CHF 0.1 million for the item “Amortisation of intangible assets”. Adjusted for this non-recurring effect, EBIT and EBT increased by CHF 13.1 million last year, while profit including minority interests and net profit increased by CHF 11.8 million.
Operating expenses increased by a total of CHF 73.3 million to CHF 1,186.1 million in the year under review (previous year: CHF 1,112.8 million). After adjustment for the loss from the disposal of Gläserne Molkerei, the increase due to inflation was CHF 36.1 million, or 3.2%, which corresponds to a disproportionate increase in relation to sales and accordingly held back the increase in the margin at the level of gross profit.
Personnel expenses were CHF 566.1 million in the year under review, compared to CHF 556.5 million in the previous year. The increase of CHF 9.6 million resulted primarily from higher wage costs in all countries due to inflation. However, the increase was largely aligned with sales, from 13.2% during the previous year to 13.3% during the year under review.
During the year under review, other operating expenses amounted to CHF 620.0 million or CHF 582.8 million after adjustment for the loss from the disposal of Gläserne Molkerei. Compared to the previous year (CHF 556.3 million), the increase in terms of adjusted figures was CHF 26.5 million, entailing a rise from 13.1% during the previous year to 13.7% as a proportion of sales. A significant increase, both in absolute terms and in relation to sales, resulted in particular from higher costs of energy and operating materials. The higher cost of electricity and fuel drove up the cost of energy and operating materials to CHF 118.6 million, a significant increase of CHF 23.5 million or 24.8%. Marketing and sales-related expenses also posted an increase, reaching a total of CHF 140.7 million compared to CHF 130.1 million in the previous year, pursuing the goal of strengthening established brand concepts. Logistics costs followed an opposite trajectory, thereby supporting margins, as they to some extent normalised after the previous year’s record highs, falling by CHF 21.9 million or 13.6% to CHF 139.6 million (previous year: CHF 161.5 million).
Other operating income amounted to CHF 6.7 million in the year under review, down slightly on the previous year’s figure of CHF 9.0 million.
During the period under review, earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to CHF 375.8 million, or CHF 413.0 million excluding the loss from the disposal of Gläserne Molkerei. Compared to the previous year (CHF 379.3 million), this represents an adjusted increase of CHF 33.7 million. The EBITDA margin therefore rose from the previous year’s 9.0% to the adjusted figure of 9.7% in the period under review.
Depreciation and amortisation fell by CHF 8.8 million in the year under review, from CHF 126.4 million to CHF 117.6 million. However, if the previous year’s impairment of non-current assets at Gläserne Molkerei is factored out, this resulted in an increase of CHF 4.3 million.
During the period under review, earnings before interest and taxes (EBIT) amounted to CHF 258.2 million (previous year: 253.0 million), or CHF 295.4 million (previous year adjusted: CHF 266.1 million) excluding the loss from the disposal of Gläserne Molkerei. Compared to the previous year, EBIT therefore increased by CHF 5.2 million, or by CHF 29.3 million based on the respective adjusted figures. The resulting EBIT margin of 6.1% (adjusted 7.0%) was accordingly also above the previous year’s margin of 6.0% (adjusted 6.3%).
Following a loss of CHF 0.1 million in the previous year, income from associates and joint ventures recorded a profit of CHF 3.9 million. Excluding the profit from the disposal of Ambrosi S.p.A., profit during the year under review amounted to CHF 0.9 million.
The financial result (net financial expenses) was CHF 24.0 million, compared to CHF 23.3 million in the previous year. Net interest expense rose by CHF 2.4 million to CHF 16.5 million in the year under review (previous year: CHF 14.1 million). This increase was due in particular to the refinancing of euro promissory notes in mid 2022 and the general increase in financing costs for various local financing arrangements. On the other hand, with a loss of CHF 6.5 million, the foreign currency result was improved by CHF 1.9 million than the previous year (CHF 8.4 million).
Income taxes during the year under review amounted to CHF 32.6 million, compared to CHF 38.9 million (adjusted: CHF 40.3 million) in the previous year. Adjusted for the tax effect from the disposal of Gläserne Molkerei and Ambrosi, tax expenses amounted to CHF 40.7 million in the year under review. The tax rate of 13.7% (adjusted: 14.9%) was thus significantly lower than in the previous year (17.0% or adjusted 16.6%). The lower tax rate is due primarily to a change in tax legislation in Brazil approved in December 2023, which resulted in a recognition of previously unrecognised tax loss carryforwards.
Profit including minority interests was CHF 205.5 million. Compared to CHF 190.6 million in the previous year, this represents an increase of CHF 14.9 million. The increase on the basis of adjusted figures was CHF 29.2 million.
The significant increase in the amount of profit attributable to minority interests from CHF 8.1 million in the previous year to CHF 19.2 million in the year under review is a positive sign, even though it diminishes the net profit. However, it means that companies with minority interests were able to increase their overall profitability significantly during the period under review.
The resulting net profit of CHF 186.3 million thus came in CHF 3.8 million higher than the previous year (CHF 182.5 million). However, the net profit for the year under review, adjusted for non-recurring effects mentioned, of CHF 212.4 million was significantly higher, by CHF 18.1 million, than the adjusted figure for the previous year of CHF 194.3 million. The net profit margin was 4.4% (adjusted 5.0%) compared to 4.3% (adjusted 4.6%) in the previous year.