3. Material topics

3.1 Economic performance

The Emmi Group understands “economic performance” to mean the creation of value in an economic and social context. In addition to the established growth and profitability targets, the manner in which the corporate targets are implemented along the value chain is of central importance (see section 3.11 Responsible business conduct). The Emmi Group pursues its corporate goals as part of its corporate and sustainability strategy. Economic performance encompasses both direct and indirect economic impacts; e.g. through procurement, tax payments or the income of its employees.

3.1.1 Impact on the environment and society, and opportunities and risks

The global dairy industry plays an important role in driving value creation in the agricultural economy and is relevant to the economy as a whole. Approximately 982 million tonnes (t) of milk are produced worldwide every year (Dairy Market Review, 2025). Around one billion people make a living directly or indirectly from the dairy industry. An important socio-economic factor is the large number of jobs in agriculture and manufacturing, primarily in rural areas, which are supported by approximately 108 million farms (IFCN Annual Sector Database with Long Term Dairy Outlook, 2024). The world’s 20 largest milk processors alone generate sales of around CHF 220 billion (RaboResearch, 2024). Globally, sales in 2024 amounted to approximately CHF 870 billion (Global Dairy Market Report, 2024). With sales of around CHF 4.7 billion (2025), the Emmi Group’s impact is less significant at the global level, yet its socio-economic contribution certainly remains relevant in the direct business environment; i.e. for employees, milk suppliers and shareholders, as well as the communities at the production sites.

Job losses and the removal of economic factors that support individual locations could have significant economic and social consequences, especially in rural areas. Many people in such areas are directly or indirectly dependent on successful milk marketing. Strengthening rural areas by creating jobs and ensuring the security of supply is of key importance to economic stability and improving the quality of life.

A decline in the economic performance of the dairy industry could also affect global food security. A decline in production could lead to shortages and higher prices. The continuity provided by the Emmi Group and its achievements in terms of innovation, which are geared towards consumer needs and current nutritional trends, are important for meeting market requirements and contributing to the health and satisfaction of consumers.

3.1.2 Management approach and goals

The economic performance of the Emmi Group is under the strategic control of the Board of Directors and the operational management of Group Executive Management. Emmi’s management model is designed for the medium to long term, with the aim of sustainable and profitable growth and added value for its stakeholders.

Strategic goals and priorities

Long-term strategic goals and financial “north stars” (growth, profitability and return on capital) form the basis of Emmi’s management model. These long-term goals are translated into annual goals and cascaded across the entire organisation. The (strategic) progress is reviewed three times a year on the basis of rolling forecasts and a qualitative assessment. Important principles in the management model are foresight and adaptability.

While the Emmi Group is further strengthening its leading position as a milk processor in the Swiss domestic market, it is also focussing on its international growth in the strategic markets of the USA, Chile and Brazil. The Emmi Group strives to continuously optimise its brand, product and corporate portfolio, and focusses on innovations in strategic niches, such as ready-to-drink coffee, speciality cheeses, chilled premium desserts and plant-based milk alternatives. It also aims to develop strong brand concepts that meet current consumer needs and market trends. The company seeks to achieve cross-divisional excellence and to be a leader in sustainability.

Emmi Group strategy

Short and mid-term guidance

The Emmi Group sets itself short-term and medium-term targets for economic success. These include target ranges for organic sales growth in the divisions and for the Group as a whole. Target ranges are also set for the operating result (EBIT) and the net profit margin from a Group perspective. Other medium-term goals in connection with economic success relate to return on invested capital (ROIC) and the payout ratio.

The short-term guidance for the following or current financial year and the mid-term guidance are part of the outlook in the financial commentary.

The Emmi Group creates value for investors in several ways: for shareholders, this is achieved through a sustained increase in the share price and a continuous dividend policy with a payout ratio of between 35% and 45%. The foundation for this is built on consistently meeting the announced targets. The Emmi Group is also a safe and reliable investment option for debt providers by keeping debt within a narrowly defined limit.

Added value for other stakeholders

The Emmi Group also aims to take responsibility for stakeholders in the upstream value chain and create added value as part of sustainable and profitable growth. In addition to respecting human rights, ensuring fair working conditions and a living wage for people working in raw material production and logistics is relevant from a social perspective.

Group of experts for monitoring developments in agricultural policy and the dairy industry

The Board of Directors formed a group of experts under the title of Agricultural Council to monitor current and future agricultural policy matters and general dairy industry developments in Switzerland. In the year under review, the Agricultural Council consisted of five members of the Board of Directors and the five following external experts: the Managing Director of Central Switzerland Milk Producers (ZMP), which has a stake in Emmi; the Director of Swiss Milk Producers (SMP); the President of Milk industry organisation (BO Milch); the President of milk producing organisation Mittelland Milch; and the Managing Director of milk producing organisation mooh. The external members of the Agricultural Council receive annual remuneration of CHF 5,000 each, plus compensation for meetings (of which there are generally two per year) and travel expenses. For all five members of the Board of Directors, their activities as part of the Agricultural Council are included in the remuneration disclosed in section 6 of the Remuneration Report.

Information on the management approach in terms of promoting a sustainable dairy industry and responsible sourcing can be found in these two sections.

Sustainable dairy

Responsible sourcing

3.1.3 Developments in the year under review

Breakdown of economic performance

The Emmi Group spends more than half a billion Swiss francs per year on its employees, procures goods and services worth more than CHF 3 billion from its suppliers, pays around CHF 40 million in income taxes and distributes more than CHF 80 million in dividends to its shareholders, which is in line with the target payout ratio of 35% to 45% of net profit. A significant proportion of the dividend goes to the majority shareholder Central Switzerland Milk Producers (ZMP) and ultimately to more than 2,800 milk suppliers, as well as to numerous members of other shareholder associations. Other shareholders pay the dividend to milk suppliers or cheese dairies.

3.1.4 Outlook

Information on the outlook for the financial year 2026 can be found in the financial commentary.