ROME: Swiss milk processor and dairy products company Emmi generated sales of CHF1,594million in the first half of 2016 – an increase of 2.0 % compared to CHF1,563 million in the first six months of the previous year.
Swiss milk processor and dairy products company Emmi generated sales of CHF1,594million in the first half of 2016 – an increase of 2.0 % (in organic terms -0.7 %) compared to CHF1,563 million in the first six months of the previous year. It also achieved a net profit of CHF 61 million (previous year CHF46 million) and a net profit margin of 3.8 % (previous year 3.0 %). For full-year 2016, Emmi believes that it is on target for both sales and earnings.
Emmi exceeded its earnings forecasts. The company generated an EBIT of CHF 92.5 million compared to CHF 84.4 million in the previous year (+9.5 %) and an EBIT margin of 5.8 % (previous year 5.4 %). The significant improvement in net profit includes, among others, the non-recurring negative effects of the erratic strengthening of the Swiss franc in 2015.
“The half-year sales reflect the challenging economic environment and the strong competition, with high milk volumes being one of the reasons,” said Urs Riedener, CEO of Emmi. “The profit development is the result of improved earnings abroad and the strong position in niches. “The international subsidiaries contributed again to the profit increase. A further earnings uplift resulted from the more recently acquired companies.”
In the business division Switzerland, sales were 2.4 % below the same period last year at CHF853.2 million (previous year CHF874.2 million). This was due to the declining retail business, low milk prices, high competitive and import pressure, and continued strong retail tourism.
Sales of fresh products grew in spite of this. Caffè Latte, YoQua and Energy Milk all made positive contributions. By contrast, cheese and fresh cheese recorded considerable falls in sales, suffering under the difficult economic conditions in the Swiss market. This was particularly pronounced for AOP cheese, while the Kaltbach specialities and the Luzerner Rahmkäse (Lucerne cream cheese) achieved growth. The decline in dairy products (milk, cream, butter) was caused by a drop in volumes and lower milk prices. Sales in the powder/concentrates segment were unchanged, while those of other products/services were down slightly.
