Emmi booked a drop in full-year earnings today (24 March) as one-time charges hit the bottom line. On an adjusted basis, however, the Swiss dairy stressed 2014 profits were up on 2013.
Emmi revealed a 19.2% dip in EBIT, which declined to CHF136.2m (US$140.7m), and a 24.6% fall in net profit, which dropped to CHF78.9m. The company attributed the decreases to one-off items such as impairment charges relating to its Italian unit Trentinalatte. CEO Urs Riedener commented: "The adjustment has a substantial negative impact on our income statement, but the adjusted figures clearly show that Emmi is on the right path in terms of profitability."
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On an adjusted basis, profits increased in 2014. Operating profit stripping out non-recurring items rose 6.7% and adjusted net profit was up 12.1%.
Net sales in the year totaled CHF3.4bn, a rise of 3.2%. Emmi said it saw “encouraging” growth in the saturated Swiss market, where sales increased 1.3%. Elsewhere, the Americas, Europe and global milk trade units all expanded the top line with sales up 2.7%, 8.3% and 13.2% respectively.
Looking to 2015, Emmi forecast a drop in sales due to the negative impact of the strength of the Swiss franc. Group sales are expected to drop 2-3% in the 12 months. However, Emmi also reiterated its medium term sales forecast range of positive 2-3%.
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"Emmi is doing everything in its power to ensure that Swiss dairy products continue to have sufficient sales potential in international markets. Nevertheless, currency effects will have a negative impact on Emmi’s performance in 2015. Emmi expects a markedly negative currency translation effect and an additional organic decline in sales. Emmi also expects a decline in income," the company concluded.
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