Emmi milks its worth
Switzerland’s top dairy concern, Emmi is "encouraged" by its net profit for 2004, which increased by 12.6 per cent to SFr47.3 million ($39.7 million).
The profit was at the lower end of expectations, although the company said it was making progress in markets outside Switzerland.
The group, which has been listed on the stock exchange since last year, said that in a “difficult overall environment both in Switzerland and in the key German market”, it had still managed to boost sales by 2.5 per cent to SFr1.9 billion.
Analysts had forecast that net profit would be between SFr46.9 million and SFr50 million.
Chairman Fritz Wyss, who has transformed the Lucerne group into the largest dairy enterprise in the country, said he was satisfied with the figures at the company’s annual results presentation.
Strong results
Emmi said that the “strong results” could be attributed to a positive performance in the fresh products segment coupled with a marked rise in international business.
Turnover in the cheese division went down by one per cent to SFr889 million but this was better than in the previous year in the wake of increasing liberalisation in Switzerland and exporting greater volumes to major non-European markets.
In a reaction to the figures, Zurich’s cantonal bank cut its rating on the stock and commented that Emmi shares no longer looked cheap.
“Due to the numbers, which are below expectations we cut the share from “marketweight” to “underweight”,” said the bank’s Patrik Schwendimann.
Successful launch
The company has diversified from milk and cheese into higher-margin products, with its range of lifestyle products such as Caffè Latte drinks and aloe vera yoghurts proving a hit among the public.
It said the Caffè Latte launch had been the most successful in its history.
Emmi said it expected sales growth of five per cent this year and a stable net profit margin.
The dairy giant recorded moderate growth in Switzerland in the first quarter of 2005 and also made significant progress in its international markets, the statement added.
A further expansion of its product palette is on the cards this year.
The company also intends to develop its German, Austrian and United States markets, as well as expanding its presence in the Netherlands, Italy, France and Britain.
The firm raised SFr100 million when it floated on the stock exchange in December 2004, money that it has largely earmarked for expansion into new markets.
swissinfo with agencies
Financial figures 2004
Net profit – SFr47.3 million ($39.74 million), an increase of 12.6 per cent compared with 2003 figures.
Sales – SFr1.926 billion (SFr1.979 billion in 2003).
Earnings before interest, taxes, depreciation ands amortisation (EBITDA) – SFr118.7 million (SFr 118 million in 2003).
Emmi has been listed on the Zurich stock exchange (SWX) since December last year.
It has been diversifying from milk and cheese into higher-margin products such as Caffè Latte and aloe vera yoghurts.
A quarter of its sales are made outside Switzerland.
The company says it wants to increase turnover by five per cent this year.
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