Breakdown of the half-year results

Sales

The Emmi Group generated sales of CHF 2,272.4 million in the first half of 2025, equivalent to double-digit sales growth of 12.7% compared with the same period in the previous year (CHF 2,017.2 million). The high growth is primarily attributable to positive acquisition effects of 11.8%. These mainly concern the Mademoiselle Desserts Group acquired in October of the previous year, with Hochstrasser and Verde Campo also contributing to the acquisition-related growth. Sales performance was also impacted by negative currency effects of 3.5%, which are largely attributable to the depreciation of the Brazilian real, the Mexican peso, the euro and the US dollar against the Swiss franc. Taking into account acquisition and currency effects, this resulted in solid growth of 4.4% in organic terms, which pleasingly is broad-based and driven by positive volume development. As a result, the Emmi Group exceeded its own full-year guidance of 1.5% to 2.5% in the first half of the year.

The division Switzerland achieved good organic sales growth of 0.9%. In addition to the encouraging performance of proven brand concepts such as Emmi Caffè Latte, Emmi Energy Milk and Luzerner Rahmkäse, the sales development was also supported by higher milk prices which have been in place since the middle of the previous year. Innovations such as the meal replacement drink Emmi I’m your meal, which was launched in the previous year, and the new Emmi High Protein Water also made a positive contribution. The division Americas generated strong organic growth of 8.3%. The dynamic growth markets of Brazil, Chile and Mexico are the main drivers of growth of the division, and thus also the Group. The cheese trading business in Canada, the locally produced speciality cheese business at Emmi Roth in the USA and the normalisation of milk production in Tunisia also made significant contributions to the division’s strong growth. At 2.2%, organic growth in the division Europe was in line with expectations for the year as a whole. Sales of Emmi Caffè Latte in particular performed well in all markets, as did the Italian speciality desserts. By contrast, slightly lower sales of cheese and goat’s milk products from the Netherlands hampered the sales performance of the division Europe.

Acquisition effects are attributable to the following factors:

• Acquisition of Laticínios Verde Campo S.A. (Brazil, 31 May 2024)
• Acquisition of Hochstrasser Group (Switzerland, 1 October 2024)
• Acquisition of the Mademoiselle Desserts Group (France, 3 October 2024)

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 had no impact on the Group.

Sales developments in the divisions Switzerland, Americas, Europe and Global Trade are explained below.

Sales development Switzerland

The division Switzerland generated net sales of CHF 871.6 million, up 2.0% from CHF 854.8 million in the same period in the previous year. Adjusted for the acquisition of Hochstrasser, this resulted in good organic growth of 0.9%. In addition to the encouraging performance of proven brand concepts such as Emmi Caffè Latte, Emmi Energy Milk and Luzerner Rahmkäse, higher milk prices since the middle of the previous year also supported organic sales growth, which in the first half of the year was at the upper end of the Group’s guidance for the year as a whole (0% to 1%). Organic growth was particularly pleasing in the fresh products and fresh cheese segments, while the cheese segment recorded a decline in sales driven by difficult conditions with high competition and import pressure. The division Switzerland accounted for 38.3% of Group sales (previous year: 42.4%).

In dairy products (milk, cream, butter) – the largest segment – sales increased to CHF 338.4 million in the first half of 2025, compared with CHF 334.1 million in the same period in the previous year. Organic growth of 1.3% primarily reflects the positive effect of the milk price, which was increased in the middle of the previous year on the recommendation of the milk industry organisation Milch, benefiting milk producers.

Sales of fresh products increased from CHF 191.4 million to CHF 200.1 million, equivalent to strong organic growth of 4.5%. Established brand concepts such as Emmi Caffè Latte and Emmi Energy Milk performed particularly well. The meal replacement drink Emmi I’m your meal, which was launched in the previous year, and the innovative new product Emmi High Protein Water, also contributed to the high growth in this segment.

The cheese segment saw a 1.8% decline in sales to CHF 184.9 million, compared with CHF 188.4 million during the same period in the previous year. This development primarily affects traditional cheeses such as Gruyère AOP and processed cheeses such as raclette and fondue. The decline also reflects the further increase in cheese imports compared with the same period in the previous year. Despite the difficult conditions, branded products such as Luzerner Rahmkäse and Scharfe Maxx recorded significant growth in sales.

Sales of fresh cheese increased from CHF 56.1 million to CHF 59.5 million, equivalent to strong sales growth of 6.1%. The growth in this segment was mainly driven by mozzarella, which was positively affected by the good summer weather in June, and high-protein cottage cheese.

The powder/concentrates segment posted sales of CHF 43.1 million, compared with CHF 46.9 million during the same period in the previous year. The decline in sales of 8.0% compared with the same period in the previous year mainly reflects lower sales of skimmed milk powder and milk protein to industrial customers.

In other products/services, sales increased by 20.1% to CHF 45.6 million, up from CHF 37.9 million in the same period in the previous year, thanks to the acquisition-related contribution from the Hochstrasser coffee business. In organic terms, however, sales declined by 3.3%, primarily due to the discontinuation of certain activities outside the core business – in particular juice bottling.

Sales development Americas

The division Americas comprises the Emmi Group companies in the USA, Brazil, Chile, Spain, Tunisia, Mexico and Canada.

Sales in the division Americas increased by 4.0% in the first half of 2025 from CHF 820.5 million to CHF 853.4 million. While the positive acquisition effect from the purchase of Verde Campo in the previous year supported the sales performance, the strongly negative currency effects reduced sales. Taking these effects into account, this resulted in strong organic growth of 8.3%, thereby also well above the Group’s guidance for the year as a whole (3% to 5%) in the first half of the year. The dynamic growth markets of Brazil, Chile and Mexico once again proved to be the main growth drivers. The division Americas accounted for 37.6% of Group sales (previous year: 40.7%).

Cheese – the segment with the highest sales – generated sales of CHF 320.1 million (previous year: CHF 300.2 million) and strong organic growth of 11.2%. Emmi Roth’s cheese business in the USA recorded pleasing growth – thanks in part to the number one feta brand Athenos, as well as other locally produced speciality cheeses. By contrast, the business with Swiss cheese recorded a decline in volume and sales as a result of the price increase that was required because of tariffs and exchange rates. Only the coming months will reveal the price elasticity in the business with Swiss cheese in the USA, especially as further tariff and exchange rate-dependent price increases will be necessary in the second half of 2025. Chile recorded significant growth with locally produced cheese and the trading business in Mexico and Canada.

Sales of dairy products increased by 1.4%, from CHF 208.0 million to CHF 210.9 million. Adjusted for acquisition and currency effects, however, this resulted in strong organic growth of 6.3%. The most important growth drivers were Brazil, where milk and butter in particular recorded notable increases, as well as Chile, which saw significant volume growth for Surlat-branded milk. Encouragingly, there was also positive growth momentum in Tunisia, where milk volumes returned to normal levels. In addition, Darey Brands recorded growth in California with goat’s milk from the nationally leading brand Meyenberg. However, lower milk prices in Spain hampered the sales performance in this segment.

The fresh products segment generated sales of CHF 189.7 million compared with CHF 180.3 million in the same period in the previous year, equivalent to a total increase of 5.2% or 3.1% in organic terms. The strongest growth momentum came from Brazil with yogurt and yogurt drinks, and Spain, where Emmi Caffè Latte and kefir products in particular recorded pleasing growth. Chile and Tunisia also made a positive contribution to the performance of this segment.

Although the other segments are of less importance to the division in terms of sales, they all generated organic sales growth. The organic growth of 6.2% in the fresh cheese segment is mainly attributable to higher sales of mozzarella in Brazil. Strong organic growth of 38.7% was achieved in the powder/concentrates segment, driven by the development of the milk powder business in Brazil. Among other products/services, the trading business in Mexico is the primary growth driver.

Sales development Europe

The division Europe comprises the Emmi Group companies in France, Italy, the UK, the Netherlands, Germany, Austria and Belgium.

Sales in the division Europe amounted to CHF 483.7 million in the first half of 2025. Compared to CHF 286.1 million in the same period in the previous year, this represents growth of 69.1%, which is largely attributable to the acquisition of the Mademoiselle Desserts Group in October 2024. Adjusted for acquisition and currency effects, this resulted in organic growth of 2.2%, which at the end of the first half of the year is in line with the Group’s own expectations for the year as a whole (1% to 3%). The biggest driver of the division Europe’s organic growth is the business with Italian speciality desserts, which is reflected in strong organic growth in the fresh products segment. It is also pleasing that Emmi Caffè Latte was able to successfully continue its growth trajectory despite the challenging macroeconomic environment. The division Europe accounted for 21.3% of Group sales (previous year: 14.2%).

Sales of fresh products amounted to CHF 376.3 million in the first half of 2025, more than double the figure for the same period in the previous year (CHF 171.6 million) – primarily due to the acquisition effect of Mademoiselle Desserts. However, very pleasing organic growth of 6.4% was also achieved. The biggest contribution to this was made by innovative speciality desserts from Italy. Emmi Caffè Latte also performed positively, with growth in all European markets – Germany, the UK, Austria and Benelux.

Sales in the cheese segment decreased from CHF 52.7 million in the same period in the previous year to CHF 51.1 million. Excluding negative currency effects, this resulted in a net sales decline in organic terms of 1.0%. The challenging market environment was reflected in lower cheese sales, particularly in France, Austria and the UK.

Sales in the fresh cheese segment amounted to CHF 20.4 million, compared with CHF 24.3 million in the same period in the previous year. The decline of 16.5% or 13.8% in organic terms is attributable to the decline in international sales of goat’s milk cheese and goat’s cheese curd from the Netherlands.

Sales of powder/concentrates decreased by 9.7% to CHF 16.8 million, compared with CHF 18.6 million in the same period in the previous year. The net sales decline of 7.8% in organic terms is mainly due to delayed deliveries of goat’s milk powder from the Netherlands to the Asian market.

Sales in the dairy products segment increased to CHF 4.1 million. The organic growth of 35.3% is mainly attributable to higher sales of goat’s milk in the Netherlands. In other products/services, the division Europe generated sales of CHF 15.0 million, compared with CHF 15.7 million in the same period in the previous year. The net sales decline in organic terms of 2.2% primarily reflects the highly competitive market for plant-based milk alternatives.

Sales development Global Trade

The division Global Trade primarily comprises direct sales and exports 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: 2.7%).

Sales in the division Global Trade amounted to CHF 63.7 million in the first half of 2025. Compared with CHF 55.8 million in the same period in the previous year, this represents sales growth of 14.2%. Adjusted for the acquisition effect from the shift of distribution channels from the division Europe, organic sales growth amounted to 11.5%.

Organic sales growth of 3.4% in the cheese segment reflects higher surplus exports of industrial cheese, which more than compensated the slight decline in traditional cheeses and processed cheese, particularly in South America and Asia. A decrease of 6.7% in organic terms was recorded in the fresh products segment, which is primarily attributable to the decline in the yogurt business in Asia. The marked increase in the dairy products segment is also attributable to surplus exports, particularly butter and cream.

Gross profit

Gross profit increased to CHF 908.7 million in the first half of 2025, up CHF 124.5 million or 15.9% on the previous year’s figure of CHF 784.2 million. The disproportionate increase relative to the sales performance led to a significantly higher gross profit margin of 40.0% (previous year: 38.9%). This positive development is primarily attributable to acquisition effects – in particular the integration of the Mademoiselle Desserts Group. At the same time, input costs remained at a high level and even increased significantly year on year for some raw materials, such as coffee, cocoa, eggs and fruit. In addition, the marked appreciation of the Swiss franc led to significant negative foreign currency effects, which also had a negative impact on the gross profit margin. However, these negative effects were partly offset by targeted sales price increases, intensified procurement measures and productivity increases along the entire value chain.

Non-recurring effects in the half-year results 2025

No non-recurring effects were recorded in the reporting period or in the same period in the previous year. For this reason, Emmi has opted not to disclose adjusted results.

Operating result

Operating expenses amounted to a total of CHF 690.3 million in the reporting period, representing a significant increase of CHF 101.6 million or 17.3% compared with the previous year’s figure of CHF 588.7 million. As a percentage of sales, operating expenses amounted to 30.4% (previous year: 29.2%), which thus offset the increase in the gross profit margin. Both the absolute increase and the higher percentage of sales are largely attributable to the acquisitions made in the previous year. Because of its size, the Mademoiselle Desserts Group is particularly significant. Not only does it have an above-average gross profit margin compared to the Emmi Group, it also has higher operating expenses as a percentage of sales.

Personnel expenses increased considerably in the first half of 2025 to CHF 372.1 million, up from CHF 297.5 million in the same period in the previous year. The increase of CHF 74.6 million is primarily attributable to acquisition effects. This also led to an increase in personnel expenses as a percentage of sales, which rose from 14.8% in the previous year to 16.4% in the reporting period. In addition, the pressure on wage costs remained high, but this was largely offset by efficiency measures in the personnel area.

Other operating expenses amounted to CHF 318.2 million in the reporting period, up CHF 27.0 million on the previous year’s figure of CHF 291.2 million. The absolute increase is again mainly attributable to acquisition-related effects. As a percentage of sales, however, other operating expenses decreased from 14.4% to 14.0%. This was due in particular to lower marketing and sales expenses – firstly because of the lower relative share of costs at the Mademoiselle Desserts Group and secondly because of higher expenses in the previous year, for example for the 2024 Emmi Caffè Latte anniversary campaign. Energy costs and expenses for maintenance and repairs also declined in relation to sales. On the other hand, logistics costs increased. This was likewise due to the latest acquisitions.

Other operating income amounted to CHF 4.7 million in the first half of the year, compared with CHF 2.3 million in the same period in the previous year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased significantly by CHF 25.3 million to CHF 223.1 million in the reporting period (previous year: CHF 197.8 million), with the increase again primarily attributable to acquisitions. The fact that the previous year’s EBITDA margin of 9.8% was successfully maintained in the reporting period despite the challenging consumer sentiment in many relevant markets is thanks to the increase in the gross profit margin to 40.0% for the first time, offsetting the higher relative operating expenses.

The increase in ordinary depreciation and amortisation to CHF 77.7 million, up from CHF 57.5 million in the same period in the previous year, was driven by the acquisitions made in the previous year. This relates in particular to the depreciation of revalued property, plant and equipment and the amortisation of the Mademoiselle Desserts Group customer relationships newly capitalised as part of the purchase price allocation.

Earnings before interest and taxes (EBIT) amounted to CHF 145.4 million, up CHF 5.1 million from the same period in the previous year (from CHF 140.3 million). As a result of the aforementioned higher depreciation and amortisation, the EBIT margin fell to 6.4% in the first half of 2025 (previous year: 7.0%). Without negative foreign currency effects and the non-cash effects from the purchase price allocation of the Mademoiselle Desserts Group, the EBIT margin would have been on a par with the previous year’s figure.

Result from associates, financial result and income taxes

Result from associates and joint ventures recorded a loss of CHF 0.2 million in the first half of 2025, compared with a loss of CHF 0.8 million during the same period in the previous year.

The financial result (net financial expense) increased by CHF 13.3 million from the same period in the previous year to CHF 20.7 million (previous year: CHF 7.4 million), which is primarily attributable to the CHF 7.5 million increase in net interest expense. This increase resulted on the one hand from interest expenses on the bonds issued in the second half of 2024 to finance the acquisition of Mademoiselle Desserts and on the other from lower interest income due to the general decline in interest rates. While the development of net interest result was in line with expectations, the negative foreign currency result was significantly worse than in the previous year (down CHF 5.8 million). This was mainly due to higher hedging costs and the general appreciation of the Swiss franc.

Income taxes amounted to CHF 20.5 million during the reporting period versus CHF 19.8 million in the same period in the previous year. The expected tax rate for the full year 2025 is therefore 16.5%.

Net profit

Net profit including minority interests was CHF 103.9 million, compared with CHF 112.2 million in the same period in the previous year.

Minority interests in net profit amounted to CHF 6.7 million, a decrease of CHF 1.2 million on the previous year, which is mainly attributable to the buyout of minority interests in the reporting period.

After deducting minority interests, the Emmi Group posted a net profit of CHF 97.2 million (previous year: CHF 104.4 million), equivalent to a net profit margin of 4.3% (previous year: 5.2%). In addition to higher depreciation and amortisation, the margin decline at the level of net profit can also be attributed to the significantly higher net financial expense compared with the previous year.

Assets, financing and cash flow

Total assets as at 30 June 2025 decreased by 1.2% or CHF 41.3 million compared with 31 December 2024 to CHF 3,318.2 million, with the decline predominantly being attributable to negative foreign currency effects resulting from the significant appreciation of the Swiss franc since the end of 2024. Operating net working capital (consisting of inventories and trade receivables and payables) amounted to CHF 747.8 million, an increase of CHF 38.9 million or 5.5% compared with 31 December 2024. Non-current assets declined by CHF 60.1 million, which was primarily driven by negative foreign currency effects, in addition to amortisation exceeding investments. On the liabilities side, current and non-current financial liabilities saw a slight overall decrease, which is attributable not only to repayments but also to negative foreign currency effects. Combined with the lower level of cash and cash equivalents, this resulted in net debt of CHF 1,001.4 million as at 30 June 2025, compared with CHF 1,003.7 million as at 31 December 2024. The equity ratio was 32.8% as at 30 June 2025, down slightly from 33.6% as at 31 December 2024.

Cash inflow from operating activities amounted to CHF 168.0 million, down CHF 11.3 million on the previous year’s figure of CHF 179.3 million. While the increase of CHF 29.0 million in cash flow before changes in net working capital, interest and taxes largely reflects the operating improvement at EBITDA level, the lower cash flow from operating activities can be put down to the change in net working capital and higher tax payments. The change in net working capital had a negative effect of CHF 31.2 million in the first half of 2025, compared with a positive effect of CHF 2.6 million in the same period in the previous year. While interest paid was slightly lower than in the previous year, higher taxes paid had a negative impact on cash flow from operating activities. At CHF 106.1 million, cash outflow from investing activities was CHF 37.8 million higher than the previous year’s figure of CHF 68.3 million. Investments in property, plant and equipment increased by CHF 20.0 million to CHF 73.4 million in the reporting period. Cash outflow from acquisition activities also increased, amounting to CHF 31.6 million (previous year: CHF 11.0 million) and related to the buyout of minority interests. Excluding cash flow from acquisition activities, this resulted in a free cash flow of CHF 93.6 million, compared with CHF 122.0 million in the same period in the previous year. Cash outflow from financing activities amounted to CHF 99.3 million. This was the result of higher dividend payments to shareholders and minority shareholders totalling CHF 89.2 million and the cash outflow from reduced financial liabilities of CHF 10.1 million. In the previous year, cash outflow from financing activities amounted to CHF 91.4 million; the increase in the reporting year mainly relates to higher dividend payments. As a result of the cash flows described above, cash and cash equivalents decreased by CHF 45.5 million compared to 31 December 2024, from CHF 303.7 million to CHF 258.2 million.

Outlook for full year 2025

The outlook for the full year 2025 continues to be defined by an uncertain and challenging economic environment. In many of the markets relevant to Emmi, this is reflected in subdued consumer sentiment, partly due to the decline in real wages in many countries in recent years. Pressure on personnel costs will therefore remain high. The high volatility on procurement markets and in global supply chains is expected to persist, driven not only by trade policy developments such as the dynamic US tariff situation in particular, but also to ongoing and new geopolitical uncertainties. The strengthening of the Swiss franc against other important currencies for Emmi also reached levels in the first half of 2025 that go beyond the ordinary course of business and require special measures to protect the Group’s profitability.

Emmi will therefore continue to implement targeted sales price increases in order to protect the profitability of its export business, while closely monitoring price elasticity in the coming months. The efficiency and cost-saving initiatives will also be significantly intensified in order to protect the Group’s margins. As usual, Emmi will act with discipline and prudence, and counter pressure on margins by continuously transforming its portfolio in line with its strategic priorities. The Emmi Group is convinced that the highest quality, strong brands and innovative concepts are more important than ever during times of subdued consumer sentiment.

In terms of sales performance, Emmi expects slightly lower growth momentum in the second half of the year than in the first half due to the challenging economic conditions and strong sales in the same period in the previous year. For 2025 as a whole, however, Emmi now expects slightly higher organic growth at Group level of 2.0% to 3.0% (previously 1.5% to 2.5%) thanks to the good growth in the first half of the year.

In Switzerland, Emmi continues to operate in a highly competitive market, where import and price pressure have been further intensified by the strength of the Swiss franc. In addition, the milk price effect that supported sales in the first half of the year will not be repeated in the second half. Nevertheless, Emmi continues to forecast organic sales growth of between 0% and 1% for division Switzerland. In the division Americas, based on strong sales in the first half of the year, Emmi expects slightly higher organic growth for the year as a whole of 4% to 6% (previously 3% to 5%), driven by the growth markets of Brazil, Chile and Mexico. However, major uncertainties remain in connection with US tariff policy. In the division Europe, Emmi still expects organic growth of 1% to 3%.

Looking at the results, the Emmi Group expects that the negative effects from the appreciation of the Swiss franc and US tariff policy will be partially offset by slightly higher organic sales and further efficiency and cost-saving measures. Based on the conditions currently known, Emmi maintains the earnings guidance communicated in February and expects EBIT of between CHF 330 million and CHF 350 million and a net profit margin of between 4.8% and 5.3% for 2025 as a whole. Emmi is also confirming its mid-term guidance.