Total assets as at 31 December 2025 were up year on year by CHF 121.7 million or 3.6% to CHF 3,481.2 million (previous year: CHF 3,359.5 million). This increase is primarily attributable to higher cash and cash equivalents as a result of the pleasing cash flow and slightly higher inventories.
Operating net working capital (consisting of inventories and trade receivables and payables) amounted to CHF 722.3 million. The increase of CHF 13.4 million or 1.9% compared with the end of the previous year (CHF 708.9 million) is attributable to slightly higher inventories; however, these were partially offset by higher trade payables. Relative to sales, operating net working capital declined from 16.3% the previous year to 15.2% in the year under review. However, this decline is primarily attributable to the inclusion of a full year of revenue from companies acquired in the previous year, whereas in the prior year, their revenues were recognised only from the acquisition date.
Non-current assets decreased slightly by CHF 26.4 million or 1.5%, from CHF 1,807.0 million the previous year to CHF 1,780.6 million. Property, plant and equipment accounted for the majority of non-current assets at CHF 1,285.8 million (previous year: CHF 1,283.3 million) and increased by CHF 2.5 million overall due to investments slightly exceeding depreciation, despite negative currency effects. Intangible assets, however, declined by CHF 29.6 million, mainly due to scheduled amortisation of customer relationships from the acquisition of Mademoiselle Desserts, as well as negative currency effects.
Liabilities as at 31 December 2025 amounted to CHF 2,257.2 million, compared to CHF 2,229.7 million at the end of the previous year. The slight increase of CHF 27.5 million was mainly due to the increase in trade payables and other liabilities, while bank overdrafts and lease liabilities declined due to amortisation and currency effects. As a result, the equity ratio rose from 33.6% as at 31 December 2024 to 35.2%. The decrease in financial liabilities combined with higher cash and cash equivalents also led to a pleasing decrease of net debt to CHF 882.6 million as at 31 December 2025 (previous year: CHF 1,003.7 million). Relative to EBITDA, net debt fell significantly from 2.13 in the previous year to 1.79 at the end of the year under review.
The return on invested capital (ROIC) amounted to 7.6% in the year under review, compared with 8.6% the previous year. The lower return reflects the expected short-term dilutive effect of the latest acquisitions.
Cash inflow from operating activities amounted to CHF 397.0 million in the year under review, a slight decline of CHF 9.9 million from the record level seen the previous year (CHF 406.9 million). While the increase of CHF 71.7 million in cash flow before changes in net working capital, interest and taxes largely reflects the increase at EBITDA level, the slightly lower cash flow from operating activities is primarily due to the increase in net working capital. This had a negative impact of CHF 30.6 million on cash flow from operating activities in the year under review. Compared with the positive impact of CHF 37.7 million the previous year, this resulted in an overall negative deviation of CHF 68.3 million year on year. Interest and taxes paid also impacted cash flow from operating activities by a total of CHF 13.3 million more than in the previous year, primarily attributable to the acquisitions made in the fourth quarter of the previous year, which are now included for 12 months for the first time.
Cash outflow from investing activities amounted to CHF 202.9 million in the year under review, compared with a high CHF 962.9 million in the previous year due to acquisition activities. The acquisition of The English Cheesecake Company and the purchase of non-controlling interests resulted in cash outflows from acquisition activities totalling CHF 49.6 million in the year under review, compared with an outflow of CHF 844.9 million in the previous year. Investments in property, plant and equipment generated a net outflow of CHF 149.7 million in the year under review, compared with CHF 111.3 million in the previous year.
Excluding cash flow from acquisition activities, a free cash flow of CHF 243.8 million was generated in the year under review. The decrease compared to the CHF 288.8 million reported in the previous year is due to the slightly lower cash flow from operating activities and the increase of investment in non-current assets.
There was a total cash outflow from financing activities of CHF 112.0 million in the year under review, compared with a cash inflow of CHF 508.0 million in the previous year. The majority of the year-on-year difference relates to the issuance of bonds to finance the acquisition of Mademoiselle Desserts in the previous year (inflow of CHF 624.2 million). Compared with the previous year, higher cash outflows resulted from the higher dividend to the shareholders of Emmi AG, whereas less money was spent on repayments of other financial liabilities and dividend payments to minority shareholders in the year under review.
As a result of the cash flows described, cash and cash equivalents rose by CHF 72.9 million from CHF 303.7 million in the previous year to CHF 376.5 million as at 31 December 2025.
The economic conditions will remain challenging in 2026 and beyond. Geopolitical tensions are causing uncertainty all around the world and holding back global growth. In many of the markets relevant to Emmi, only moderate growth dynamic is expected for the current year and, accordingly, consumer sentiment will remain subdued.
In terms of operating expenses, pressure on personnel costs remains high due to inflation-driven wage adjustments and the ongoing shortage of skilled workers. Volatility on procurement markets and in global supply chains is also likely to persist, meaning Emmi still expects high input costs in 2026. The Swiss franc is likely to appreciate further, in particular against the US dollar and the euro, which are important currencies for Emmi. This is weighing on sales and earnings in Swiss francs and reducing the competitiveness of exporting from Switzerland. The biggest steps in the current cycle of interest rate cuts have probably already taken place, so interest rates are likely to be stable at a low level over the course of the year.
Emmi is well positioned in structurally growing markets and strategic niches. Thanks to its balanced geographical presence, high innovative strength and strong brand concepts, Emmi remains agile in order to exploit opportunities arising from the current turmoil, even in times of great uncertainty and subdued consumer sentiment. Emmi will therefore continue to act in a disciplined and prudent manner and counter margin pressure with efficiency and cost-saving initiatives, as well as ongoing portfolio transformation in line with strategic priorities and consumer trends.
In division Switzerland, the overall conditions remain challenging. Import pressure and shopping tourism in neighbouring countries are likely to persist due to the strong Swiss franc. The extraordinarily high quantities of milk produced, combined with stocks that are already elevated, are creating additional price pressure. The lower milk reference price from February 2026 will substantially impact the sales development in Switzerland, but only have an effect on volumes produced as the year progresses. Emmi is combating these negative effects with strong brands, trend-oriented innovations, rigorous customer and consumer focus and products of the usual high quality. Despite the challenges mentioned, Emmi therefore still expects a continuation of the positive volume development of recent years in its home market of Switzerland.
In division Americas, Emmi expects the growth markets of Brazil, Chile and Mexico to continue to perform dynamically in 2026. Emmi also expects further growth momentum in the key US market, even though the subdued consumer sentiment is likely to recover only tentatively.
Innovative premium desserts and Emmi Caffè Latte remain the key growth drivers in division Europe. The Mademoiselle Desserts Group will contribute to organic growth for the full financial year for the first time in 2026. Sales growth should also be supported by the goat’s milk powder business in the Netherlands, where the first positive signals in the export business to Asia are emerging.
For financial year 2026, Emmi expects continued growth dynamic at Group level, with organic growth in the range of 1.0% to 3.0%. In its home market of Switzerland, Emmi generally anticipates a continuation of the positive volume trends seen in recent years. However, the significantly lower milk price and the absence of the positive one-off effect from the second half of 2025 will weigh on organic growth in Switzerland by around 2.5 percentage points and on the Group by around one percentage point. For Switzerland, we therefore expect an organic sales decline of -2.0% to 0.0%. For the international divisions, by contrast, we expect organic growth of 4.0% to 6.0% for Americas and 2.0% to 4.0% for Europe. At EBIT level, the outlook points to an increase in earnings to CHF 335 million to CHF 355 million. Emmi also expects an improvement in the net profit margin to a range of 4.8% to 5.3%.
The medium‑term guidance for organic growth (Group 2% to 3%, Switzerland 0% to 1%, Americas 4% to 6%, Europe 1% to 3%) and for the net profit margin (5.5% to 6.0%) remains unchanged. With regard to ROIC, the previous target (trend towards improvement) is further specified, with a medium‑term target value of 10%. This reflects the strong importance assigned to ROIC in the Group’s internal financial management. The medium‑term dividend policy continues to foresee a payout ratio of 35% to 45% of net profit, but is supplemented by the objective of a yearly increase in the dividend in Swiss francs.