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25.01.2024 06:59:32 - dpa-AFX: EQS-Adhoc: Emmi growing in line with its strategic priorities (english)
Emmi growing in line with its strategic priorities
Emmi Management AG / Key word(s): Sales Result
Emmi growing in line with its strategic priorities
25-Jan-2024 / 06:58 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Ad hoc announcement pursuant to Art. 53 LR
Lucerne, 25 January 2024 - In a continuously challenging market environment,
the Emmi Group achieved broad-based organic growth of 3.5% in 2023. This
reflects the focused implementation of the strategy, the differentiated
market positions and the innovative brand portfolio. Adjusted for negative
currency and acquisition effects, annual sales rose by 0.3% to CHF 4,242.4
million in 2023. Emmi grew in line with its strategic priorities in the key
markets of the division Americas, in Switzerland and in strategic niches
such as ready-to-drink coffee with Emmi Caffè Latte. Organic growth is
therefore in line with the communicated forecast for the 2023 financial
year.
'Thanks to the focused execution of our strategy, our clear market focus and
the outstanding commitment of our teams, we achieved solid organic sales
growth in a challenging market environment in 2023. With our passion,
innovative strength and high-quality standards for our strong brands and
products, we, together with our partners, have once again succeeded in
creating delicious dairy moments,' says Ricarda Demarmels, CEO of the Emmi
Group.
Sales performance of the Emmi Group
In a market environment that remained challenging and in some cases highly
inflationary, the Emmi Group increased its annual sales slightly to CHF
4,242.4 million in 2023 (previous year: CHF 4,230.0 million). This sales
growth of 0.3% is made up of organic growth of 3.5%, a negative currency
effect of 2.2% and a negative acquisition effect of 1.0%. This broad-based,
price-driven organic growth is in line with the Group's own guidance for the
year and reflects the focused execution of the strategy, the differentiated
market positions, the innovative brands and the diversified product
portfolio. It was supported by responsible sales price adjustments.
Emmi achieved growth in line with its strategic priorities, with markets
such as Chile, Mexico, Brazil and Spain showing strong growth. The strategic
niches of ready-to-drink coffee with Emmi Caffè Latte and chilled premium
desserts in the USA also proved to be growth drivers for the Group. Thanks
to its highly market-driven approach and strong, innovative brands, Emmi was
able to further differentiate itself in the market and systematically expand
its positions in 2023.
Sales development was impacted by the challenging market environment, which
continued to be defined by highly dynamic markets, high inflation rates and
subdued consumer sentiment. Currency effects due to the strong Swiss franc
also had a negative impact on sales. Furthermore, there was also a negative
acquisition effect from the sale of Gläserne Molkerei in mid-August 2023,
which is part of the the ongoing, consistent portfolio transformation.
Sales development by division
Division Switzerland
The division Switzerland achieved sales of CHF 1,762.0 million (previous
year: CHF 1,698.1 million) and organic growth of 3.8%, which exceeded
proprietary forecasts. This growth is attributable in particular to
innovative brands such as Emmi Caffè Latte, Emmi Energy Milk, Aktifit,
Luzerner Rahmkäse and Gerber. In addition, the milk price increase by the
industry organisation Milch - which benefits milk suppliers - and the
recovery of the food service business following the pandemic had a positive
impact on growth.
Division Americas
The division Americas generated sales of CHF 1,698.8 million (previous year:
CHF 1,673.9 million). Adjusted for the strong negative currency impact,
principally from the further strengthening of the Swiss franc against the US
dollar, the organic growth of 5.7% was slightly below proprietary
expectations. In Tunisia, sales in the dairy segment were impacted by the
prevailing milk shortage in a challenging market environment. In the USA,
the biggest foreign market, the development of speciality cheeses, which are
predominantly in the premium segment, was generally subdued due to high
price levels and muted consumer sentiment. Athenos, the leader in the US
feta market, performed well despite this. Chilled premium desserts also
performed well in the USA. The key markets of Chile, Mexico, Spain and
Brazil continued to drive growth in various segments.
Division Europe
In a persistently challenging European market environment with subdued
consumer sentiment, the division Europe reported sales of CHF 661.4 million
(previous year: CHF 730.4 million). In addition to the negative acquisition
effect of the sale of Gläserne Molkerei, currency effects had a strong
negative impact on sales. Adjusted for these effects, there was a slight
organic decline in sales of 0.4%, which was somewhat below proprietary
expectations. The export of Swiss cheese, particularly to Germany and the
Netherlands, held back sales growth. This was mainly due to the slowdown in
consumer demand caused by price and exchange rate factors. In addition,
economic uncertainties, high global inventories at distributors and a lack
of availability of raw materials had a negative impact on sales of goat's
milk powder in the Netherlands. In contrast, Emmi Caffè Latte and Dutch
fresh goat's cheese performed well. Emmi also recorded a pleasing increase
in sales of chilled premium Italian desserts in the food service business.
Division Global Trade
The division Global Trade posted sales of CHF 120.2 million (previous year:
CHF 127.6 million), representing an organic decline in sales of 5.7%. The
discontinuation of business in Russia and slightly lower sales in Asia
impacted the cheese business. The decline in the powder business reflects
lower exports of skimmed milk powder from Switzerland.
Emmi will publish its detailed 2023 annual results and outlook for the
current financial year at 7.00 a.m. on 29 February 2024.
Download material and further information
* Media release as PDF
* Media release on the 2023 half-year results
* Alternative performance indicators
* Emmi Media Corner
Contacts
Media
Simone Burgener, Media spokesperson | media@emmi.com
Investors and Analysts
Oliver Wasem, Head of Investor Relations | ir@emmi.com
About Emmi
Emmi is the leading manufacturer of high-quality dairy products in
Switzerland. Its roots date back to 1907, when it was founded by dairy
farmer cooperatives in the Lucerne region. With its focussed strategy,
innovative products and brand concepts established beyond Switzerland, such
as Emmi Caffè Latte and Kaltbach cheese, Emmi has grown into an
internationally active, listed group (EMMN) with a strong local presence in
13 countries.
Emmi's business model is traditionally based on a careful approach to
nature, animals and people. In this way, Emmi creates the best dairy
moments, today and for generations to come, while also contributing to value
creation in rural regions. The company distributes its quality products in
around 60 countries and manufactures these at 57 of its own production sites
in eleven countries. With more than 9,000 employees, around 70% of whom work
outside Switzerland, the Emmi Group generated sales of CHF 4.2 billion in
2023.
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End of Inside Information
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End of Announcement EQS News Service
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1822503 25-Jan-2024 CET/CEST
Emmi Management AG / Key word(s): Sales Result
Emmi growing in line with its strategic priorities
25-Jan-2024 / 06:58 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Ad hoc announcement pursuant to Art. 53 LR
Lucerne, 25 January 2024 - In a continuously challenging market environment,
the Emmi Group achieved broad-based organic growth of 3.5% in 2023. This
reflects the focused implementation of the strategy, the differentiated
market positions and the innovative brand portfolio. Adjusted for negative
currency and acquisition effects, annual sales rose by 0.3% to CHF 4,242.4
million in 2023. Emmi grew in line with its strategic priorities in the key
markets of the division Americas, in Switzerland and in strategic niches
such as ready-to-drink coffee with Emmi Caffè Latte. Organic growth is
therefore in line with the communicated forecast for the 2023 financial
year.
* Broad-based, price-driven organic sales growth of 3.5%, negative
currency effect of 2.2%, negative acquisition effect of 1.0%
* Organic growth in division Switzerland (3.8%) and division Americas
(5.7%), slight organic decline in division Europe (-0.4%)
* Organic growth in line with strategic priorities in key markets such as
Chile, Mexico, Spain, Brazil and Switzerland, and in niches such as
ready-to-drink coffee and chilled premium desserts in the USA
* Growth impacted by negative currency effects and negative acquisition
effect from the disposal of Gläserne Molkerei
'Thanks to the focused execution of our strategy, our clear market focus and
the outstanding commitment of our teams, we achieved solid organic sales
growth in a challenging market environment in 2023. With our passion,
innovative strength and high-quality standards for our strong brands and
products, we, together with our partners, have once again succeeded in
creating delicious dairy moments,' says Ricarda Demarmels, CEO of the Emmi
Group.
Sales performance of the Emmi Group
in CHF Sales Sales Differenc- Acquisitio- Currency Organic
million 2023 2022 e n effect effect growth
2023/2022
Division 1,762.0 1,698.1 3.8% - - 3.8%
Switzerlan-
d
Division 1,698.8 1,673.9 1.5% - -4.2% 5.7%
Americas
Division 661.4 730.4 -9.5% -5.8% -3.3% -0.4%
Europe
Division 120.2 127.6 -5.7% - - -5.7%
Global
Trade
Group 4,242.4 4,230.0 0.3% -1.0% -2.2% 3.5%
In a market environment that remained challenging and in some cases highly
inflationary, the Emmi Group increased its annual sales slightly to CHF
4,242.4 million in 2023 (previous year: CHF 4,230.0 million). This sales
growth of 0.3% is made up of organic growth of 3.5%, a negative currency
effect of 2.2% and a negative acquisition effect of 1.0%. This broad-based,
price-driven organic growth is in line with the Group's own guidance for the
year and reflects the focused execution of the strategy, the differentiated
market positions, the innovative brands and the diversified product
portfolio. It was supported by responsible sales price adjustments.
Emmi achieved growth in line with its strategic priorities, with markets
such as Chile, Mexico, Brazil and Spain showing strong growth. The strategic
niches of ready-to-drink coffee with Emmi Caffè Latte and chilled premium
desserts in the USA also proved to be growth drivers for the Group. Thanks
to its highly market-driven approach and strong, innovative brands, Emmi was
able to further differentiate itself in the market and systematically expand
its positions in 2023.
Sales development was impacted by the challenging market environment, which
continued to be defined by highly dynamic markets, high inflation rates and
subdued consumer sentiment. Currency effects due to the strong Swiss franc
also had a negative impact on sales. Furthermore, there was also a negative
acquisition effect from the sale of Gläserne Molkerei in mid-August 2023,
which is part of the the ongoing, consistent portfolio transformation.
Sales development by division
Division Switzerland
in CHF Sales Sales Differenc- Acquisitio- Currency Organic
million 2023 2022 e n effect effect growth
2023/2022
Dairy 687.9 661.1 4.1% - - 4.1%
products
Cheese 418.2 411.4 1.6% - - 1.6%
Fresh 382.1 362.3 5.5% - - 5.5%
products
Fresh 115.2 106.0 8.7% - - 8.7%
cheese
Powder/con- 82.0 86.4 -5.0% - - -5.0%
centrates
Other 76.6 70.9 8.1% - - 8.1%
products/s-
ervices
Total 1,762.0 1,698.1 3.8% - - 3.8%
The division Switzerland achieved sales of CHF 1,762.0 million (previous
year: CHF 1,698.1 million) and organic growth of 3.8%, which exceeded
proprietary forecasts. This growth is attributable in particular to
innovative brands such as Emmi Caffè Latte, Emmi Energy Milk, Aktifit,
Luzerner Rahmkäse and Gerber. In addition, the milk price increase by the
industry organisation Milch - which benefits milk suppliers - and the
recovery of the food service business following the pandemic had a positive
impact on growth.
Division Americas
in CHF Sales Sales Differenc- Acquisitio- Currency Organic
million 2023 2022 e n effect effect growth
2023/2022
Cheese 635.2 663.0 -4.2% - -4.7% 0.5%
Dairy 427.1 414.1 3.2% - -4.1% 7.3%
products
Fresh 367.2 342.7 7.1% - -5.6% 12.7%
products
Fresh 98.7 96.9 1.8% - -1.3% 3.1%
cheese
Powder/con- 48.5 40.2 20.7% - -3.9% 24.6%
centrates
Other 122.1 117.0 4.3% - 0.0% 4.3%
products/s-
ervices
Total 1,698.8 1,673.9 1.5% - -4.2% 5.7%
The division Americas generated sales of CHF 1,698.8 million (previous year:
CHF 1,673.9 million). Adjusted for the strong negative currency impact,
principally from the further strengthening of the Swiss franc against the US
dollar, the organic growth of 5.7% was slightly below proprietary
expectations. In Tunisia, sales in the dairy segment were impacted by the
prevailing milk shortage in a challenging market environment. In the USA,
the biggest foreign market, the development of speciality cheeses, which are
predominantly in the premium segment, was generally subdued due to high
price levels and muted consumer sentiment. Athenos, the leader in the US
feta market, performed well despite this. Chilled premium desserts also
performed well in the USA. The key markets of Chile, Mexico, Spain and
Brazil continued to drive growth in various segments.
Division Europe
in CHF Sales Sales Difference Acquisitio- Currency Organic million 2023 2022 2023/2022 n effect effect growth Fresh 362.9 371.8 -2.4% -1.2% -3.7% 2.5% products Cheese 124.4 138.5 -10.2% -0.4% -3.2% -6.6% Dairy 55.8 96.8 -42.4% -38.4% -1.9% -2.1% products Fresh cheese 46.3 43.2 7.4% - -3.6% 11.0% Powder/conce- 35.3 39.8 -11.6% -0.3% -3.0% -8.3% ntrates Other 36.7 40.3 -8.9% -0.3% -3.1% -5.5% products/ser- vices Total 661.4 730.4 -9.5% -5.8% -3.3% -0.4%
In a persistently challenging European market environment with subdued
consumer sentiment, the division Europe reported sales of CHF 661.4 million
(previous year: CHF 730.4 million). In addition to the negative acquisition
effect of the sale of Gläserne Molkerei, currency effects had a strong
negative impact on sales. Adjusted for these effects, there was a slight
organic decline in sales of 0.4%, which was somewhat below proprietary
expectations. The export of Swiss cheese, particularly to Germany and the
Netherlands, held back sales growth. This was mainly due to the slowdown in
consumer demand caused by price and exchange rate factors. In addition,
economic uncertainties, high global inventories at distributors and a lack
of availability of raw materials had a negative impact on sales of goat's
milk powder in the Netherlands. In contrast, Emmi Caffè Latte and Dutch
fresh goat's cheese performed well. Emmi also recorded a pleasing increase
in sales of chilled premium Italian desserts in the food service business.
Division Global Trade
in CHF Sales Sales Difference Acquisitio- Currency Organic million 2023 2022 2023/2022 n effect effect growth Cheese 64.0 68.2 -6.0% - - -6.0% Fresh 34.9 35.3 -1.2% - - -1.2% products Powder/conce- 19.1 20.8 -8.2% - - -8.2% ntrates Dairy 1.0 1.4 -29.5% - - -29.5% products Other 1.2 1.9 -35.7% - - -35.7% products/ser- vices Total 120.2 127.6 -5.7% - - -5.7%
The division Global Trade posted sales of CHF 120.2 million (previous year:
CHF 127.6 million), representing an organic decline in sales of 5.7%. The
discontinuation of business in Russia and slightly lower sales in Asia
impacted the cheese business. The decline in the powder business reflects
lower exports of skimmed milk powder from Switzerland.
Emmi will publish its detailed 2023 annual results and outlook for the
current financial year at 7.00 a.m. on 29 February 2024.
Download material and further information
* Media release as PDF
* Media release on the 2023 half-year results
* Alternative performance indicators
* Emmi Media Corner
Contacts
Media
Simone Burgener, Media spokesperson | media@emmi.com
Investors and Analysts
Oliver Wasem, Head of Investor Relations | ir@emmi.com
About Emmi
Emmi is the leading manufacturer of high-quality dairy products in
Switzerland. Its roots date back to 1907, when it was founded by dairy
farmer cooperatives in the Lucerne region. With its focussed strategy,
innovative products and brand concepts established beyond Switzerland, such
as Emmi Caffè Latte and Kaltbach cheese, Emmi has grown into an
internationally active, listed group (EMMN) with a strong local presence in
13 countries.
Emmi's business model is traditionally based on a careful approach to
nature, animals and people. In this way, Emmi creates the best dairy
moments, today and for generations to come, while also contributing to value
creation in rural regions. The company distributes its quality products in
around 60 countries and manufactures these at 57 of its own production sites
in eleven countries. With more than 9,000 employees, around 70% of whom work
outside Switzerland, the Emmi Group generated sales of CHF 4.2 billion in
2023.
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End of Inside Information
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Language: English
Company: Emmi Management AG
Landenbergstrasse 1
6005 Luzern
Switzerland
E-mail: info@emmi.com
Internet: www.emmi.com
ISIN: CH0012829898
Valor: 1282989
Listed: SIX Swiss Exchange
EQS News ID: 1822503
End of Announcement EQS News Service
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1822503 25-Jan-2024 CET/CEST
