Emmi (EMMN) H1 2024 earnings summary

Executive summary

• Sales reached CHF 2,017.2 million, down 4.1% year-over-year, mainly due to negative acquisition (-2.2%) and currency (-1.9%) effects; organic growth was flat at 0.0%.

• EBIT improved to CHF 140.3 million (7.0% margin), up from CHF 138.5 million (6.6%) last year, driven by a 201 bps increase in gross profit margin.

• Net profit rose to CHF 104.4 million (5.2% margin), up 6.7% year-over-year; cash conversion reached 91%.

• Strategic acquisitions in Brazil, Switzerland, and Europe accelerated portfolio transformation and strengthened positions in key markets and niches; a major French dessert acquisition is pending.

• Sustainability initiatives advanced, including recyclable PET bottles and progress in climate and animal welfare targets.

Financial highlights

• Net sales: CHF 2,017.2 million (down 4.1% year-over-year); organic sales flat.

• EBIT: CHF 140.3 million (up 1.3%); EBIT margin 7.0% (+37 bps).

• Net profit: CHF 104.4 million (up 6.7%); net profit margin 5.2% (+52 bps).

• Gross profit margin increased to 38.9% (+201 bps); cash flow from operating activities CHF 179.5 million.

• ROIC improved to 9.0% (from 8.3%); net debt ratio reduced to 0.74x.

Outlook and guidance

• 2024 organic sales growth expected at 1–2% at group level; EBIT guidance CHF 295–315 million; net profit margin 5.0–5.5%.

• Medium-term guidance: organic sales growth 2–3%, net profit margin 5.5–6.0%, ROIC trending higher.

• Slightly higher sales growth anticipated in H2 2024, with continued margin discipline and efficiency focus.

• Outlook excludes potential acquisition effects from Mademoiselle Desserts, pending regulatory approval.