1. Segment reporting

Emmi does not publish segment results since this would cause significant competitive disadvantages in Switzerland and abroad vis-a-vis customers, unlisted and larger listed competitors.

The divisions are not defined strictly according to geographical considerations. The division Americas includes the Emmi Group companies in the USA, Brazil, Spain, Chile, Tunisia, Mexico and Canada. The division Europe comprises those in France, Italy, the UK, the Netherlands, Germany, Austria and Belgium. 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.

2. Other operating income

3. Other operating expenses

4. Depreciation and amortisation

5. Financial result

6. Income taxes

The effective average tax rate of the reporting year amounted to 16.4% (previous year: 15.2%).

Net accruals for current income taxes decreased from CHF 32.8 million to CHF 26.5 million. Deferred income taxes are calculated for every company using the effective applicable tax rate. As at 31 December 2025, the resulting weighted average tax rate was 18.7%. The weighted average tax rate of the previous year was 19.6% Deferred income taxes include recognised tax claims from tax loss carryforwards amounting to CHF 8.8 million (previous year: CHF 11.5 million).

The Emmi Group falls within the scope of the OECD tax reform, which provides for a global minimum tax rate (Pillar II) of 15%. In Switzerland as well as in other countries where the Emmi Group has a presence, the Pillar II regulations came into force in the 2024 financial year. On the basis of the analyses carried out, the implementation of these regulations has no material impact on the consolidated financial statements of the Emmi Group.

The net change of recognised tax claims from tax loss carryforwards increased the income tax expenses in the reporting year by CHF 2.7 million (previous year: decrease by CHF 2.4 million).

7. Earnings per share

Earnings per share is calculated by dividing the net profit attributable to the shareholders of Emmi AG by the average number of shares outstanding. There are no treasury shares that need to be considered in the calculation of the average number of shares outstanding.

8. Trade receivables

9. Other receivables

10. Inventories

11. Prepayments and accrued income

Other prepayments and accrued income in the reporting year and the previous year consist mainly of prepayments, various refunds and accrued income for advertising costs and milk invoices.

12. Loans and other receivables

The carrying amount of loans and other receivables from third parties includes impairments in the amount of CHF 1.3 million (previous year: CHF 1.4 million).

13. Property, plant and equipment

14. Intangible assets

All intangible assets were acquired.

15. Trade payables

16. Other payables

17. Accrued liabilities and deferred income

Other accrued liabilities and deferred income in the reporting year and the previous year comprise in particular contributions to brand organisations, expected earn-out payments for acquisitions, energy costs, advertising costs, HGV road tax and various services.

18. Financial liabilities

18.1 Bonds

The CHF 0.3 million expenses incurred in connection with the issuance of the bond were capitalised under prepayments and accrued income on 30 October 2024. This accrual will be released over the term of the bond. The issue price at 100.029% led to premium income of CHF 0.04 million. The actual interest rate on the bond is thereby increased from 1.1% to 1.21% per year.

The CHF 0.5 million expenses incurred in connection with the issuance of the bond were capitalised under prepayments and accrued income on 22 September 2023. This accrual will be released over the term of the bond. The issue price at 100.13% led to premium income of CHF 0.3 million. The actual interest rate on the bond is thereby increased from 2.0% to 2.04% per year.

The CHF 0.4 million expenses incurred in connection with the issuance of the bond were capitalised under prepayments and accrued income on 21 June 2017. This accrual will be released over the term of the bond. The issue price at 100.4% led to premium income of CHF 0.4 million. The actual interest rate on the bond is thereby increased from 0.5% to 0.51% per year.

In 2020, securities with a nominal value of CHF 0.5 million were repurchased from the stock exchange for investment purposes.

The CHF 0.4 million expenses incurred in connection with the issuance of the bond were capitalised under prepayments and accrued income on 30 October 2024. This accrual will be released over the term of the bond. The issue price at 100.014% led to premium income of CHF 0.03 million. The actual interest rate on the bond is thereby increased from 1.35% to 1.4% per year.

The CHF 0.7 million expenses incurred in connection with the issuance of the bond were capitalised under prepayments and accrued income on 1 December 2021. This accrual will be released over the term of the bond. The issue price at 100.54% led to premium income of CHF 1.1 million. The actual interest rate on the bond was thereby reduced from 0.375% to 0.37% per year.

The proceeds from the bond were used to fund the acquisition of the Athenos business in the USA. Emmi has entered into a cross-currency swap to hedge currency and interest rate risks over the long term. Taking this hedge into account, the net interest rate on the USD nominal value of USD 215.6 million is 2.3% instead of 0.375% on the CHF nominal value of 200.0 million.

The CHF 0.7 million expenses incurred in connection with the issuance of the bond were capitalised under prepayments and accrued income on 30 October 2024. This accrual will be released over the term of the bond. The issue price at 100.207% led to premium income of CHF 0.6 million. The actual interest rate on the bond was thereby reduced from 1.6% to 1.62% per year.

18.2 Maturing structure of financial liabilities

All bonds and the vast majority of bank loans are set at fixed interest rates. For the bond issued in December 2021, the interest rate was applied after including cash flows from the cross-currency swap. There are no financing arrangements in place linked to financial covenants.

In the reporting year, financial liabilities decreased by CHF 23.0 million to CHF 1,307.3 million. Local financing in euro, British pound, Brazilian real and Tunisian dinar decreased, whereas financing in Chilean peso increased during the reporting year. At the end of the reporting year, the share of financing in Swiss francs was 86.4% (previous year: 85.1%), mainly relating to the six bonds. 9.6% (previous year: 10.6%) of the financial liabilities are denominated in euro and 0.1% (previous year: 0.1%) in British pound. CHF 51.5 million (previous year: CHF 55.8 million) or 3.9% (previous year: 4.2%) of financing were raised locally in emerging market currencies such as the Brazilian real, Tunisian dinar, and Chilean peso.

19. Provisions

The decrease in deferred income taxes due to the change in the scope of consolidation includes a reduction of CHF 5.2 million resulting from the finalisation of the purchase price allocation of the Mademoiselle Desserts Group.

Other provisions include, among others, liabilities for staff expenses in foreign countries as required by law (reporting year: CHF 9.4 million, previous year: CHF 8.9 million) and provisions for pending legal matters and business disputes (reporting year: CHF 2.7 million, previous year: CHF 2.4 million). In all cases, the likelihood of occurrence of such events has been assessed at above 50%.

20. Employee benefit schemes

21. Acquisitions

The English Cheesecake Company Ltd., which was acquired during the reporting year, had the following material balance sheet items at the acquisition date and is fully consolidated.

Due to information outstanding as of the reporting date, the purchase price allocations presented above are provisional. The purchase price allocations of the entities acquired in the previous year were finalised during the reporting period. The deferred tax liabilities and the goodwill of the Mademoiselle Desserts Group were reduced by EUR 5.5 million (CHF 5.2 million). No adjustments were made for the other acquisitions.

On 25 November 2025, Mademoiselle Desserts Corby Ltd., in which Emmi holds a 99% interest, acquired The English Cheesecake Company Ltd. As a result, Emmi holds an indirect interest of 99% in The English Cheesecake Company Ltd. The English Cheesecake Company generated net sales of GBP 26 million (CHF 26 million) for financial year 2025 up to the acquisition date and contributed GBP 3 million (CHF 3 million) to group revenue since the acquisition date.

On 31 May 2024, Laticínios Porto Alegre Indústria e Comércio S.A. (LPA), an Emmi subsidiary based in Ponte Nova, Brazil, acquired 70% of the shares in Laticínios Verde Campo S.A., Brazil. Emmi holds 70% of the shares in LPA and therefore has a 49% stake in Verde Campo. In the 2024 financial year up to the date of acquisition, Verde Campo generated net sales of BRL 128 million (CHF 23 million) and contributed BRL 178 million (CHF 29 million) to Group sales since it became part of the Group on 31 May 2024.

On 1 October 2024, Emmi acquired the Lucerne-based coffee roaster Hochstrasser, consisting of the companies Hochstrasser AG Littau, caffè Don George Gourmetrösterei AG and Mediato AG. Hochstrasser generated net sales of CHF 13 million in financial year 2024 up to the date of acquisition and contributed CHF 5 million to Group sales since it became part of the Group on 1 October 2024.

On 3 October 2024, Emmi acquired the French Mademoiselle Desserts Group, which specialises in innovative premium patisserie. The Mademoiselle Desserts Group generated net sales of EUR 308 million (CHF 293 million) in financial year 2024 up to the date of acquisition and contributed EUR 128 million (CHF 122 million) to Group sales since it became part of the Group on 3 October 2024.

22. Goodwill from acquisitions

Goodwill from acquisitions of companies or the purchase of interests in associates or joint ventures is offset against retained earnings at the date of acquisition. The theoretical capitalisation of goodwill and its amortisation over the expected useful life of usually 20 years as well as the theoretical recognition of negative goodwill as a liability over the expected useful life of 5 years would have the following effects on the consolidated financial statements:

Theoretical capitalisation of goodwill

Theoretical recognition of negative goodwill

Theoretical impact on equity incl. minority interests

Theoretical impact on earnings before interest and taxes (EBIT)

Theoretical impact on net profit

23. Unsettled derivative financial instruments

Similar to the underlying transactions, currency forwards, interest rate swaps and other forward transactions used to hedge future cash flows are not recognised in the balance sheet. The result of these derivative instruments is recognised in the income statement on occurrence of the transaction hedged. Derivative financial instruments used to hedge balance sheet positions in foreign currencies are recognised as securities in the current assets or other payables in the current liabilities, respectively. Corresponding changes in value are recognised in the financial result.

In connection with the CHF 200 million bond issued in December 2021 to fund the USD acquisition of the Athenos business in the USA, Emmi entered into a cross-currency swap. This hedges currency and interest rate risks in USD over the entire term of the bond. While the fair value of the currency portion serves as a hedge of balance sheet items and is therefore accounted for in the same way as the hedged item, the fair value of the interest portion is a hedge of future cash flows. Accordingly, the fair value of the interest portion is not recognised.

Emmi also has options to acquire additional shares in a number of Group companies with minority interests. At the same time, put options have usually been granted to the counterparties. These options are not recognised in the balance sheet as they represent derivatives on equity instruments of the own organisation, which are explicitly excluded from the scope of Swiss GAAP FER 27. The strike price of these options is generally based on the corresponding enterprise value at the exercise date and cannot currently be reliably measured. The exercise date varies depending on the agreement. The maturities range from short-term to time-unlimited options.

24. Government grants

In 2025 asset-related government grants of CHF 1.2 million (previous year: CHF 1.6 million) were recognised that were deducted directly from purchase costs. The grants recognised in the year under review relate to incentives for energy‑efficient refurbishments in France and the improvement of water and energy efficiency at a facility in Spain; those in the previous year were mainly for the installation of a solar power facility in the USA.

In 2025 Emmi received income-related government grants of CHF 1.0 million (previous year: CHF 1.1 million), which mainly originate from export contributions in Switzerland and were recognised as a reduction in the cost of materials.

25. Contingent assets and liabilities

Emmi is involved in legal disputes as part of normal business activities. Although the outcome of the lawsuits currently cannot be predicted with certainty, Emmi assumes that none of the disputes will have any significant negative impact on operating activities or on the Group’s financial situation. Expected outgoing payments are provided for accordingly. As at the date of the financial statements, the Group had no major contingent assets.

26. Pledged assets and off-balance sheet leasing/rental obligations

27. Investment obligations and other off-balance sheet liabilities

Furthermore, there are milk purchase agreements that cannot be quantified.

The long-term commodity contracts are purchase agreements for coffee that will be settled at the market price valid in the period of delivery.

28. Transactions with related parties

Business transactions with related parties are based on arm’s length conditions. All transactions are reported in the consolidated financial statements for 2025 and 2024, and consist of deliveries of products and raw materials, loans, and services to and from related parties. The corresponding receivable and payable balances are reported separately in these financial statements (see notes 8, 9, 11, 12, 15, 16 and 17).