Shareholder Letter

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Ricarda Demarmels, CEO, and Urs Riedener, Chairman of the Board of Directors

Dear Shareholders,

For almost 120 years, Emmi has stood for quality and innovation in the production of high-quality dairy products – a unique heritage that we honour with mindful responsibility all along our value chain. We have been pursuing our strategic focus for years in a disciplined manner and with the aim of creating the best dairy moments together – today and for generations to come.

The first half of the year showed how quickly the world can change – and how fragile supposed certainties are. The environment is characterised by political tensions, economic uncertainty and a loss of trust. It is precisely in times like these that the true character of a company becomes apparent. At Emmi, we remain firmly committed to what guides us: our strategy, our culture and our conduct. We stand for reliability, entrepreneurial adaptability and collaboration based on trust, responsibility and proximity.

Innovation and sustainability are key drivers of our further development. The global trend towards healthy nutrition, natural products and high-quality proteins confirms us in this, and offers the opportunity to show the full strength of dairy as a natural product and to respond to current nutritional needs.

Together with our employees and partners, we are shaping this path with courage, principles and a clear vision for the future.

“The solid half-year result underlines the strength of our robust business model and the effectiveness of our strategy. Our innovative spirit as well as trends towards healthy nutrition, naturalness and high-quality proteins give us the opportunity to show the full potential of dairy as a natural product and to respond to current nutritional needs.”

Ricarda Demarmels

Broad-based organic growth

The Emmi Group generated sales of CHF 2,272.4 million in the first half of 2025 (previous year: CHF 2,017.2 million), which corresponds to growth of 12.7%. Acquisition effects of 11.8%, primarily attributable to the acquisition of the Mademoiselle Desserts Group, were a positive driver of the sales performance. The strong Swiss franc, on the other hand, led to negative currency effects of 3.5%, with the appreciation particularly pronounced against the Brazilian real, the Mexican peso, the euro and the US dollar. After adjusting for acquisition and currency effects, this resulted in good, broad-based organic growth of 4.4%, which is based on positive volume development. The key drivers were the growth markets of Brazil, Chile and Mexico and strategic niches such as ready-to-drink coffee with Emmi Caffè Latte in all markets and premium desserts from the Italian companies. The sustained growth momentum reflects the Group’s consistent strategy implementation, strong innovative ability and entrepreneurial adaptability.

Division Switzerland recorded good organic growth of 0.9% with sales of CHF 871.6 million (previous year: CHF 854.8 million). Leading innovative brand concepts such as the iconic brands Emmi Caffè Latte, Emmi Energy Milk as well as Luzerner Rahmkäse performed well. The innovations Emmi I’m your meal and Emmi High Protein Water were also in good demand. The increase in milk prices since the middle of the previous year had a supportive effect.

Division Americas reported strong growth momentum, with organic growth of 8.3% and sales of CHF 853.4 million (previous year: CHF 820.5 million). This was largely due to the positive performance of the growth markets of Brazil, Chile and Mexico.

In a challenging macroeconomic market environment, the division Europe achieved organic growth of 2.2% and sales of CHF 483.7 million (previous year: CHF 286.1 million). The acquisition of the Mademoiselle Desserts Group resulted in a significant acquisition effect in the first half of the year compared with the previous year. The innovative dessert portfolio of the Italian dessert companies was a key driver of the division’s organic sales performance.

Solid result despite challenging market environment

The Emmi Group posted a solid result in the first half of 2025, which was characterised by geopolitical uncertainties, trade policy challenges and subdued consumer sentiment. From a Group perspective, the negative impact of US tariffs has so far remained limited due to the predominantly local value creation. On the other hand, strongly negative foreign currency effects resulting from the significant appreciation of the Swiss franc weighed on results and margins at all levels.

Gross profit increased disproportionately to sales growth to CHF 908.7 million (previous year: CHF 784.2 million), with an improved gross profit margin of 40.0% (previous year: 38.9%) as a consequence of acquisitions. Higher personnel costs led to a significant increase in operating expenses, which is mainly attributable to the acquisition of the Mademoiselle Desserts Group.

EBITDA increased to CHF 223.1 million (previous year: CHF 197.8 million), largely as a result of acquisitions. Despite higher operating expenses and strongly negative foreign currency effects, the EBITDA margin was successfully maintained at the previous year’s level of 9.8%. EBIT increased to CHF 145.4 million (previous year: CHF 140.3 million), while the EBIT margin of 6.4% was below the previous year’s margin of 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. Higher financial expenses, which were again negatively impacted by significantly higher foreign currency losses compared to the previous year, led to a lower net profit of CHF 97.2 million compared to the previous year (previous year: CHF 104.4 million), with a net profit margin of 4.3% (previous year: 5.2%).

Innovatively aligned with consumer trends

The Emmi Group strengthened its leading position with innovations in the first half of 2025. The global trend towards healthy nutrition, natural products and high-value proteins can be tangibly felt, and offers the opportunity to show milk as a natural product in all of its strength and to provide answers to current nutritional needs. The company has differentiated itself on the market with natural recipes, sustainable packaging and trend-oriented concepts. With Emmi High Protein Water, Emmi has tapped into a new product category of functional beverages for consumers with an active lifestyle. In Spain, the Kaiku Ñam drink meal was launched and, at the same time, the Emmi I’m your meal portfolio in Switzerland was expanded to include the flavours strawberry and double zero.

Innovative products with high-quality protein complemented the internationally established brand portfolios of Emmi Energy Milk, Kaiku, Laticínios Porto Alegre, Verde Campo and Surlat, as well as the iconic brand Emmi Caffè Latte, which was expanded with a high-protein line. With Onken KiddOs and lactose-free yogurts from Laticínios Porto Alegre, Emmi is responding to consumer demand for natural products made using traditional methods and with few ingredients. The expansion of the Emmi Energy Milk Double Zero product range meets the demand for less sugar and more natural ingredients.

With the creation of Emmi Desserts PowerHouse, the Emmi Group has brought together all the major dessert traditions under one roof and strengthened its established dessert business. As category captain in the growing premium desserts category, Emmi offers an innovative portfolio ranging from traditional desserts such as tiramisu and Belgian lava cakes to global trend products such as mini beignets and cake bites, as well as seasonal innovations such as limoncello tiramisu.

“With focus, discipline, high innovative strength and entrepreneurial consistency, we achieve sustainable and profitable growth – even in a challenging environment.”

Urs Riedener

Convincing the market with sustainability

Responsibility has a long tradition at Emmi. Ever since its beginnings in 1907, the Emmi Group has stood for a commitment to sustainability that is deeply rooted in its strategy. In line with economic, social and environmental considerations, Emmi thus generates sustainable, profitable growth along the entire value chain. Emmi also made further progress in implementing its sustainability strategy in the first half of 2025.

Understanding sustainability as a driver of innovation and implementing this in collaboration with partners has a measurable impact on people, society and the environment. As a founding member of RecyPac, Emmi co-initiated the development of Switzerland’s first circular solution for plastic packaging and beverage cartons. National collection was launched in January 2025. This means that all packaging solutions – from plastic and PET to glass – can be collected in Switzerland and recycled. Emmi Caffè Latte Mr. Big is now available in Switzerland with a simplified design featuring a permanently attached cup and lid. The new concept reduces littering and saves material by eliminating the aluminium seal. Emmi Dessert Italia reached an important milestone too by switching all packaging to 100% recyclable materials. Sustainability is also integrated into the corporate strategy of the Mademoiselle Desserts Group, which was acquired in October 2024. The Group has pursued a focused CSR agenda for over 15 years and renewed its B Corp certification, awarded by the independent organisation B Lab for high social and environmental standards, in 2025. By fully converting all UK production facilities to renewable energy, the company reached an important milestone in further reducing its CO2 emissions as part of its decarbonisation programme.

Since 2022, the industry initiative KlimaStaR Milk has been shaping a sustainable future for the dairy industry with an impact that extends beyond national borders. The aim of the project is to reduce the carbon footprint of milk while also reducing food and land competition. The findings of the project are also being incorporated into our international sustainability efforts. The first pilot operations in Brazil and Chile are collecting their baseline data and planning location-specific measures to reduce emissions. With “LPA Low Carbon”, our Brazilian subsidiary Laticínios Porto Alegre is pursuing the goal of systematically measuring emissions in milk production and reducing them with targeted measures. Initial pilot operations are providing representative data to identify sustainable practices and engage customers.

In addition, 93% of the milk volume purchased by the subsidiary Quillayes Surlat in Chile is now certified with the animal welfare label Bienestar Animal. Quillayes Surlat is the first South American company to purchase this certified milk. Quillayes Surlat is also investing in dual vocational training, using targeted training programmes to build its own talent pool and create opportunities for young people in the region. Since 2022, 30 young people have completed the training programme and 54 internships have also been awarded.

Slight increase in sales guidance and confirmation of earnings guidance for 2025

Emmi expects the macroeconomic situation to remain challenging in the second half of 2025, with continued volatility on the procurement markets, subdued consumer sentiment, geopolitical tensions and the negative impact of US tariff policy. The strong Swiss franc reduces the profits of foreign companies when converted from foreign currency to Swiss francs and also weighs on Swiss export business. At the same time, import pressure is increasing in the domestic market of Switzerland.

Emmi considers itself strategically well positioned to grow profitably even in this volatile environment. Due to the continued strong performance of the growth markets in Brazil, Chile and Mexico, Emmi expects slightly higher organic growth for the division Americas and, consequently, for the Group as a whole compared with the guidance communicated in February.

As far as results are concerned, the Emmi Group expects that the negative effects of 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 is maintaining the earnings guidance for EBIT and net profit margin communicated in February. The mid-term guidance also remains unchanged.

Urs Riedener

Chairman of the Board of Directors

Ricarda Demarmels

CEO