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.
With regard to its Swiss operations, Emmi faces rapid growth in the competition from cheaper imports, particularly with regard to its cheese production. The recent opening of the Swiss marketplace to ...
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