Emmi increased sales by 6.6 % to CHF 1,773.5 million in the first six months of the financial year, which were characterised by the coronavirus crisis. The organic growth of 2.0 % achieved by the leading Swiss milk processor was driven in particular by a strong retail performance in the Swiss domestic market, key brand concepts such as Emmi Caffè Latte and sales in strategic niches. The slump in the food service sector triggered by the pandemic affected sales in the business division Americas in particular. EBIT improved by 6.4 % to CHF 112.0 million, while net profit was down by 6.5 % at CHF 81.3 million. Despite considerable uncertainty, Emmi remains cautiously optimistic for the full-year.
Sales in this business division Americas rose from CHF 518.4 million to CHF 598.6 million in the first half of 2020. The year-on-year growth of 15.5 % is mainly due to the acquisitions in Brazil and Chile. Adjusted for the strongly negative currency and major acquisition effects, organic sales declined by 1.0 %, well below the company’s full-year forecast of 4 % to 6 % growth.
In the first half of 2020, sales in the business division Europe amounted to CHF 291.9 million, compared with CHF 279.9 million in the same period last year. This resulted in overall growth of 4.3 %. Excluding acquisition and currency effects, this corresponds to organic growth of 2.1 %, which is in line with our projection for full-year 2020 (1 % to 3 %).
The markets in the business division Europe posted a similar trend to that in Switzerland, with the decline in fresh products, which are focused on convenience, offset by strong growth in dairy products and cheese. However, positive stimulus came from the Fresh products segment in the UK, where Onken yogurts and Emmi Caffè Latte posted gains. In the Cheese segment, higher exports of Swiss cheese to Italy and the Netherlands propped up organic growth. It was likewise pleasing to see Gläserne Molkerei in Germany return to growth on the back of its revised strategy, benefiting from the rise in demand for organic products. This is particularly reflected in the performance of the Dairy products segment.
A special feature of the business division Europe is the key role played by goat’s milk products. Given the high dependency on the food service industry, sales of goat’s cream cheese declined, although this was largely offset by higher sales of goat’s milk powder from the Netherlands.
