SWITZERLAND: International growth continues to propel Emmi
Caffe Latte boosts Emmi at home
International growth, fuelled by acquisitions, have boosted Emmi's full-year sales as the Swiss dairy group continued to reduce its reliance on domestic revenues in 2013.
In a trading update today (6 February), Emmi said total sales rose 10.6% in the year to the end of December, climbing to CHF3.3bn (US$2.7bn).
Gains were driven by a 26% rise in international sales, which rose to CHF1.44bn. The company has said that it wants to raise the proportion of sales it generates internationally to 50% in order to offset declining dairy consumption in Switzerland. In 2012 international sales accounted for 38.2% of group sales and in 2013 this level rose to 43.5%.
In recent years, Emmi has completed a swathe of international acquisitions - including most recently Italy's Rachelli and US yoghurt maker Siggi's - as it looks to realign its business. Acquisitions contributed 8.6% to group sales growth, while organic expansion added 1.6% to the top line.
While Emmi's international sales gains were well flagged in the group's forecasts, Kepler Cheuvreux analyst Christoph Ladner said the company's performance in Switzerland was the "positive surprise". Here, the group booked organic growth of 1.4% - boosted by the continued strong growth of its Caffe Latte brand.
Shares in Emmi were up 2.53% at 10.15 GMT.
Swiss dairy group Emmi has bought out French milk processor Bongrain from Emmi Fondue (EFON), the joint venture operation in which Bongrain held a minority stake....
- Rise of prepared foods in US grocers - analysis
- Work on sugar could stir more clean-label concerns
- Hershey results, outlook, M&A - the top takeaways
- Are consumers getting tired of consuming?
- How are brands organising for e-commerce?
- Nestle, R&R Ice Cream finalise joint venture plans
- Fazer buys European biscuit brands from Mondelez
- Mondelez sees stronger margins, LFL growth
- Pinnacle Foods names Mondelez's Mark Clouse CEO
- Kerry foods Q1 volumes lifted by NPD