Emmi profit growth accelerates on minority interests

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Just-food presents the key metrics from company financials in bitesize format, with analyst insight and social media comment alongside graphs illustrating a business’ historical performance to give you an easy-to-read digest of the numbers you need to know.

Swiss dairy company Emmi reported a 15% increase in full-year net profits due to a reduction in “minority interests”, which fell by CHF10.8m (US$11.5m), mainly related to Mittelland Molkerei.

Commenting on the results, chief executive Urs Riedener said: “Emmi made up a good deal of ground in the second half of the year, boosted by the good sales performance in the US and Tunisia, a well-functioning cheese business and more favourable economic conditions.”

– Sales climb 3.2% to CHF3.3bn versus 1.4% increase in 2016 – 2017 organic sales up 0.5%

– EBITDA rises 3.8% to CHF340.7m

– EBIT up 1.5% at CHF205.8m

– Net profit advances to CHF161.6m

For 2018, Emmi sees sales growing 2-3% with a profit margin of 4.5% to 5%

Alain Oberhuber, an analyst at Swiss financial services firm MainFirst, said: “The positive outcome from the numbers was the “stronger result on EBIT and net income due to more efficiencies and lower tax rates; increase of guidance for FY-18 and mid-term; higher dividend than expected as the company pays out the divestment of Siggi’s”. In terms of negatives, he pointed to: “lower than expected free cash flow of CHF155.4m vs. our CHF175m due to higher capex and NWC; lower gross margin of 35.7% vs. our 36% due to stronger price pressure in Switzerland, but slight improvement in Americas and Europe”.

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