27. September 2022
Daniel Pfund, Senior Financial Analyst
Emmi is well known as the Swiss market leader in dairy products. But what is less well known is that the group has diversified significantly with several international acquisitions in the areas of specialty cheese, goat’s milk products and desserts.
Ten years ago, Switzerland accounted for 70% of the group’s sales, while today it represents only 42%. This reduces the dependence on the domestic market (and its oligopolistic distributors) and allows the group to grow its sales more easily. International sales have grown by 11% per year over the past 10 years, much faster than organic growth (which is around 2.5%). At the same time, the EBIT margin has increased from 5.5% to 7.2%.
The company also gave an update on the pricing situation. According to a table sent to analysts, it seems that inflation is not yet under control. Indeed, since February, Emmi has increased its prices every month, from +2.8% in February to 6.1% in August. Thanks to these price increases, the group is aiming for organic growth of around 5% to 6% in 2022 (compared with 2% to 3% for its medium-term model).