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29.02.2024 06:58:40 - Emmi on track with good annual result
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Emmi Management AG / Key word(s): Annual Results
Emmi on track with good annual result
29-Feb-2024 / 06:57 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, 29 February 2024 - The Emmi Group performed well in a continuously challenging market environment and achieved
broad-based organic growth of 3.5% in 2023. Adjusted for negative currency and acquisition effects, sales rose by 0.3%
to CHF 4,242.4 million. The consistent focus on strategic markets and attractive niches contributed to the positive
organic development. The Emmi Group was able to significantly improve its annual result thanks to considerable progress
- particularly in the strategic niche of chilled premium desserts in the US and Italy as well as in important growth
markets such as Chile and Mexico -, the ongoing portfolio transformation and the consistent implementation of
efficiency programmes. The adjusted EBIT of CHF 295.4 million and the adjusted net profit margin of 5.0% were at the
upper end of the target range. For the 2024 financial year, the Emmi Group anticipates subdued organic sales growth of
1% to 2% in the near term, but further improved EBIT results (CHF 295 million to CHF 315 million) and net profit margin
(5.0% to 5.5%). Emmi also confirms its medium-term objectives.
. Organic sales growth at Group level 3.5% (previous year: 7.0%), negative currency effect 2.2%, negative
acquisition effect 1.0%
. Organic growth in divisions Switzerland (3.8%) and Americas (5.7%), slight organic decline in division
Europe (0.4%)
. EBIT adjusted for the one-time loss from the divestment of Gläserne Molkerei at CHF 295.4 million at the
upper end of the target range (CHF 275 million to CHF 295 million) and 11.0% higher than in the previous year (CHF
266.1 million), adjusted EBIT margin 7.0% (previous year: 6.3%)
. Adjusted net profit of CHF 212.4 million, up 9.3% on the previous year (CHF 194.3 million), adjusted for
the one-time loss on the divestment of Gläserne Molkerei and the profit from the sale of the minority interest in
Ambrosi, adjusted net profit margin of 5.0% (previous year: 4.6%), also at the upper end of the target range (4.5%
to 5.0%)
. Progress in ongoing portfolio transformation and focus on profitable growth: the divestment of Gläserne
Molkerei and the sale of the minority interest in Ambrosi resulted in a one-time loss of CHF 37.2 million at EBIT
level and CHF 26.1 million at net profit level
. 7th Sustainability Report published; progress in employee development, sustainable dairy farming and
reduction of own greenhouse gas emissions
. Proposal for a dividend increase of 6.9% to CHF 15.50 per share (previous year: CHF 14.50) with an
adjusted payout ratio of 39% (previous year: 40%)
. Outlook for 2024: organic sales growth of 1% to 2%, EBIT of CHF 295 million to CHF 315 million, net
profit margin of 5.0% to 5.5%
"With our robust business model, clear strategy and significant operational improvements in our foreign markets, we
were able to assert ourselves in a challenging inflation-driven market environment and achieve a positive annual result
for 2023. With far-sightedness, responsible action and innovative strength, we made important progress in line with our
growth priorities in strategic markets and niches," says Ricarda Demarmels, CEO of the Emmi Group.
Key figures Emmi Group
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** The adjustment effect in the previous year relates to an impairment of non-current assets at Gläserne Molkerei. This amounts to CHF 13.1 million at EBIT level and CHF 11.8 million at net profit level. Good annual result in a challenging market environment
In a market environment that remained challenging and in some cases highly inflationary, the Emmi Group increased its annual sales to CHF 4,242.4 million in 2023 (previous year: CHF 4,230.0 million). The sales growth of 0.3% is comprised of an organic increase 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 thus in the middle of the Group's own guidance range for the financial year. The Emmi Group was able to make further progress thanks to the focused implementation of the strategy, the differentiated market positions, innovative brands and the diversified product and country portfolio. More information on the sales development can be found in the media release dated 25 January 2024. The positive annual result for 2023 is due in particular to the strategy geared towards long-term profitable growth, attractive brand and niche businesses and the highly agile, regionally anchored organisation, which enabled significant operational improvements at various companies. The Emmi Group was thus able to achieve a sound result at the upper end of its own guidance range. Gross profit increased to CHF 1,555.2 million (previous year: CHF 1,483.1 million) despite negative currency effects and the negative acquisition effect resulting from the divestment of Gläserne Molkerei. The gross profit margin increased to 36.7% (previous year: 35.1%). In addition to organic growth, the increase primarily reflects the ongoing portfolio transformation and the operational progress made by several foreign companies such as Quillayes Surlat in Chile, Emmi Dessert US and Emmi Dessert Italy. Consistently implemented efficiency programmes, strict cost discipline and responsible price increases, which took effect after a delay, also supported this. Personnel expenses rose due to inflation-driven increases in salary costs to CHF 566.1 million (previous year: CHF 556.5 million). The significant increase in other operating expenses to the adjusted figure - in order to take account of the loss resulting from the divestment of Gläserne Molkerei - of CHF 582.8 million (previous year: CHF 556.3 million) is primarily attributable to significantly higher energy costs driven by the market. On the other hand, higher expenses for marketing and sales as well as maintenance and repairs were offset by significantly lower logistics costs. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) thus amounted to CHF 413.0 million (previous year: CHF 379.3 million). The EBITDA margin therefore rose from the previous year's 9.0% to the adjusted figure of 9.7% in the period under review. Depreciation and amortisation decreased from CHF 126.4 million to CHF 117.6 million in the period under review. However, excluding the non-recurring effect from the impairment of Gläserne Molkerei in the previous year, there was a slight increase of CHF 4.3 million. As a result, adjusted earnings before interest and taxes (EBIT) amounted to CHF 295.4 million. Compared to the adjusted previous year (CHF 266.1 million), this represents an increase of 11.0%. The resulting adjusted EBIT margin of 7.0% was also significantly above the prior-year adjusted margin of 6.3%. Adjusted for the loss on the divestment of Gläserne Molkerei and the profit on the sale of the minority interest in Ambrosi, net profit came to CHF 212.4 million, exceeding the adjusted prior-year figure of CHF 194.3 million by 9.3%. On the basis of the adjusted figures, the net profit margin also improved significantly from 4.6% in the previous year to 5.0% in the period under review. In line with a consistent dividend policy and on the basis of the positive result and solid balance sheet, the Board of Directors proposes an increase in the dividend of 6.9% to CHF 15.50 per share (previous year: CHF 14.50). Continuous portfolio transformation
As part of its ongoing and consistent portfolio transformation and its focus on profitable, strategic markets and niches, Emmi announced the divestment of Germany-based Gläserne Molkerei GmbH on 6 July 2023 and completed the sale on 14 August 2023. This non-recurring effect impacted 2023 EBITDA and EBIT by CHF 37.2 million and net profit by CHF 28.9 million. Excluding the positive tax effect, the transaction resulted in a net outflow of cash and cash equivalents of CHF 11.5 million. On 3 July 2023, the sale of the non-strategic minority interest in Ambrosi S.p.A., which had already been announced in 2022, was also completed. This non-recurring effect had a positive impact on net profit of CHF 2.8 million and also led to a net inflow of cash and cash equivalents of CHF 27.1 million. Responsible business model
MORE TO FOLLOW) Dow Jones Newswires
February 29, 2024 00:58 ET (05:58 GMT)
Emmi Management AG / Key word(s): Annual Results
Emmi on track with good annual result
29-Feb-2024 / 06:57 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, 29 February 2024 - The Emmi Group performed well in a continuously challenging market environment and achieved
broad-based organic growth of 3.5% in 2023. Adjusted for negative currency and acquisition effects, sales rose by 0.3%
to CHF 4,242.4 million. The consistent focus on strategic markets and attractive niches contributed to the positive
organic development. The Emmi Group was able to significantly improve its annual result thanks to considerable progress
- particularly in the strategic niche of chilled premium desserts in the US and Italy as well as in important growth
markets such as Chile and Mexico -, the ongoing portfolio transformation and the consistent implementation of
efficiency programmes. The adjusted EBIT of CHF 295.4 million and the adjusted net profit margin of 5.0% were at the
upper end of the target range. For the 2024 financial year, the Emmi Group anticipates subdued organic sales growth of
1% to 2% in the near term, but further improved EBIT results (CHF 295 million to CHF 315 million) and net profit margin
(5.0% to 5.5%). Emmi also confirms its medium-term objectives.
. Organic sales growth at Group level 3.5% (previous year: 7.0%), negative currency effect 2.2%, negative
acquisition effect 1.0%
. Organic growth in divisions Switzerland (3.8%) and Americas (5.7%), slight organic decline in division
Europe (0.4%)
. EBIT adjusted for the one-time loss from the divestment of Gläserne Molkerei at CHF 295.4 million at the
upper end of the target range (CHF 275 million to CHF 295 million) and 11.0% higher than in the previous year (CHF
266.1 million), adjusted EBIT margin 7.0% (previous year: 6.3%)
. Adjusted net profit of CHF 212.4 million, up 9.3% on the previous year (CHF 194.3 million), adjusted for
the one-time loss on the divestment of Gläserne Molkerei and the profit from the sale of the minority interest in
Ambrosi, adjusted net profit margin of 5.0% (previous year: 4.6%), also at the upper end of the target range (4.5%
to 5.0%)
. Progress in ongoing portfolio transformation and focus on profitable growth: the divestment of Gläserne
Molkerei and the sale of the minority interest in Ambrosi resulted in a one-time loss of CHF 37.2 million at EBIT
level and CHF 26.1 million at net profit level
. 7th Sustainability Report published; progress in employee development, sustainable dairy farming and
reduction of own greenhouse gas emissions
. Proposal for a dividend increase of 6.9% to CHF 15.50 per share (previous year: CHF 14.50) with an
adjusted payout ratio of 39% (previous year: 40%)
. Outlook for 2024: organic sales growth of 1% to 2%, EBIT of CHF 295 million to CHF 315 million, net
profit margin of 5.0% to 5.5%
"With our robust business model, clear strategy and significant operational improvements in our foreign markets, we
were able to assert ourselves in a challenging inflation-driven market environment and achieve a positive annual result
for 2023. With far-sightedness, responsible action and innovative strength, we made important progress in line with our
growth priorities in strategic markets and niches," says Ricarda Demarmels, CEO of the Emmi Group.
Key figures Emmi Group
in CHF million 2023 2023 2022 2022 adjusted* adjusted** Net sales 4,242 4,230 Sales growth in % 0.3 8.1 Net sales increase in organic terms in % 3.5 7.0 Acquisition effect in % -1.0 2.1 Currency effect in % -2.2 -1.0 Earnings before interest and taxes (EBIT) 258.2 295.4 253.0 266.1 as % of net sales 6.1 7.0 6.0 6.3 Net profit 186.3 212.4 182.5 194.3 as % of net sales 4.4 5.0 4.3 4.6 Investments in fixed assets (excl. acquisitions) 145.1 206.2 as % of net sales 3.4 4.9 Headcount (full-time equivalents) as at 31.12. 9,346 9,368 * Adjusted for non-recurring effects of CHF 37.2 million at EBIT level and CHF 26.1 million at net profit level. In the year under review, these resulted from the divestment of Gläserne Molkerei and the sale of the minority interest in Ambrosi S.p.A.
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** The adjustment effect in the previous year relates to an impairment of non-current assets at Gläserne Molkerei. This amounts to CHF 13.1 million at EBIT level and CHF 11.8 million at net profit level. Good annual result in a challenging market environment
In a market environment that remained challenging and in some cases highly inflationary, the Emmi Group increased its annual sales to CHF 4,242.4 million in 2023 (previous year: CHF 4,230.0 million). The sales growth of 0.3% is comprised of an organic increase 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 thus in the middle of the Group's own guidance range for the financial year. The Emmi Group was able to make further progress thanks to the focused implementation of the strategy, the differentiated market positions, innovative brands and the diversified product and country portfolio. More information on the sales development can be found in the media release dated 25 January 2024. The positive annual result for 2023 is due in particular to the strategy geared towards long-term profitable growth, attractive brand and niche businesses and the highly agile, regionally anchored organisation, which enabled significant operational improvements at various companies. The Emmi Group was thus able to achieve a sound result at the upper end of its own guidance range. Gross profit increased to CHF 1,555.2 million (previous year: CHF 1,483.1 million) despite negative currency effects and the negative acquisition effect resulting from the divestment of Gläserne Molkerei. The gross profit margin increased to 36.7% (previous year: 35.1%). In addition to organic growth, the increase primarily reflects the ongoing portfolio transformation and the operational progress made by several foreign companies such as Quillayes Surlat in Chile, Emmi Dessert US and Emmi Dessert Italy. Consistently implemented efficiency programmes, strict cost discipline and responsible price increases, which took effect after a delay, also supported this. Personnel expenses rose due to inflation-driven increases in salary costs to CHF 566.1 million (previous year: CHF 556.5 million). The significant increase in other operating expenses to the adjusted figure - in order to take account of the loss resulting from the divestment of Gläserne Molkerei - of CHF 582.8 million (previous year: CHF 556.3 million) is primarily attributable to significantly higher energy costs driven by the market. On the other hand, higher expenses for marketing and sales as well as maintenance and repairs were offset by significantly lower logistics costs. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) thus amounted to CHF 413.0 million (previous year: CHF 379.3 million). The EBITDA margin therefore rose from the previous year's 9.0% to the adjusted figure of 9.7% in the period under review. Depreciation and amortisation decreased from CHF 126.4 million to CHF 117.6 million in the period under review. However, excluding the non-recurring effect from the impairment of Gläserne Molkerei in the previous year, there was a slight increase of CHF 4.3 million. As a result, adjusted earnings before interest and taxes (EBIT) amounted to CHF 295.4 million. Compared to the adjusted previous year (CHF 266.1 million), this represents an increase of 11.0%. The resulting adjusted EBIT margin of 7.0% was also significantly above the prior-year adjusted margin of 6.3%. Adjusted for the loss on the divestment of Gläserne Molkerei and the profit on the sale of the minority interest in Ambrosi, net profit came to CHF 212.4 million, exceeding the adjusted prior-year figure of CHF 194.3 million by 9.3%. On the basis of the adjusted figures, the net profit margin also improved significantly from 4.6% in the previous year to 5.0% in the period under review. In line with a consistent dividend policy and on the basis of the positive result and solid balance sheet, the Board of Directors proposes an increase in the dividend of 6.9% to CHF 15.50 per share (previous year: CHF 14.50). Continuous portfolio transformation
As part of its ongoing and consistent portfolio transformation and its focus on profitable, strategic markets and niches, Emmi announced the divestment of Germany-based Gläserne Molkerei GmbH on 6 July 2023 and completed the sale on 14 August 2023. This non-recurring effect impacted 2023 EBITDA and EBIT by CHF 37.2 million and net profit by CHF 28.9 million. Excluding the positive tax effect, the transaction resulted in a net outflow of cash and cash equivalents of CHF 11.5 million. On 3 July 2023, the sale of the non-strategic minority interest in Ambrosi S.p.A., which had already been announced in 2022, was also completed. This non-recurring effect had a positive impact on net profit of CHF 2.8 million and also led to a net inflow of cash and cash equivalents of CHF 27.1 million. Responsible business model
MORE TO FOLLOW) Dow Jones Newswires
February 29, 2024 00:58 ET (05:58 GMT)
