Swiss dairy firm Emmi has reported a 5.6% year-on-year increase in sales to CHF3.9 billion (€3.76 billion) in its financial year 2021.
On an organic basis, sales increased 3.6% in 2021, which was above company expectations of 2%–3%.
The company attributed this growth to its strategy, which focuses on a diversified product and country portfolio, differentiated brand concepts, and innovation, the company said.
Emmi’s Swiss business contracted slightly, although strong momentum in foreign markets and strategic niches, such as desserts, remained intact in the second half of the year.
Its brand concepts, such as Emmi Caffè Latte and Kaltbach cheese, consolidated their positions in the market, the company added.
Board Changes
Emmi has announced that Thomas Oehen-Bühlmann, a member since 2009 and vice-chairman since 2012, and Franz Steiger, a member since 2015, will not be standing for re-election to the board of directors of Emmi AG, at the company's annual general meeting in April 2022.
The board has nominated Werner Weiss and Hubert Muff – members of the management board of Emmi’s main shareholder ZMP – to succeed Oehen and Steiger.
Read More: Emmi Nominates CEO Urs Riedener As Next Board Chairman
Divisional Performance
On a divisional basis, strong organic growth was seen in the Americas (9.6%), Europe (5.2%), and Global Trade (11.5%).
In Europe, sales growth was driven by sales of its Italian speciality desserts and brand concepts, such as Emmi Caffè Latte and Kaltbach cheese.
The dessert business also performed well in the US, with Emmi Dessert USA, which was acquired in the previous year, posting a strong increase in sales.
The company’s Switzerland division reported a 2.2% decline in sales, to CHF1.65 billion (€1.59 billion), which the company described as ‘slightly better than expected.'
Elsewhere, the global trade division generated sales worth CHF121.4 million (€116.96 million) in 2021, up 13.1% from CHF107.4 million (€103.47 million) in 2020.
The cheese segment in the division reported organic sales growth of 9.6%, driven by a strong performance by the Kaltbach brand.
Outlook
Emmi upheld its earnings forecasts communicated in March 2021, which it later confirmed in August, despite significantly higher global inflation rates and a sharp rise in input costs.
The company is currently anticipating an operating profit at the EBIT level and a net profit margin in the middle of the targeted ranges.
© 2022 European Supermarket Magazine. Article by Dayeeta Das. For more Fresh Produce news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
