Emmi (EMMN) H2 2024 earnings summary

Executive summary

• Achieved broad-based, volume-driven organic growth of 2.4% year-over-year, ahead of guidance, with acceleration in H2 2024.

• Profitability improved due to cost management, portfolio transformation, and international business expansion.

• Strategic markets in Brazil, Chile, Mexico, and the USA, and niches like ready-to-drink coffee, desserts, and cheese, were strengthened.

• Three acquisitions (Verde Campo, Hochstrasser AG, Mademoiselle Desserts) bolstered future growth and market positions.

• Progress made on sustainability goals, including employee development and circular economy initiatives.

Financial highlights

• Net sales reached CHF 4,349 million, up from CHF 4,242 million in 2023; organic sales growth of 2.4%.

• EBIT was CHF 302.7 million (7.0% margin); excluding Mademoiselle Desserts, EBIT was CHF 308.8 million (7.3% margin, +34 bps year-over-year).

• Net profit was CHF 220.3 million (5.1% margin), up from CHF 212.4 million (5.0%) in 2023.

• Operating cash conversion was 94% (previous year 98%); annualised net debt/EBITDA increased to 2.13x due to acquisitions.

• Dividend proposed at CHF 16.50 (+6.5% year-over-year), payout ratio at 40.1%.

Outlook and guidance

• 2025 guidance: organic sales growth 1.5%–2.5%, EBIT CHF 330–350 million, net profit margin 4.8%–5.3%.

• Medium-term guidance confirmed: organic sales growth 2%–3%, net profit margin 5.5%–6.0%, ROIC trend towards improvement.

• Economic conditions remain challenging, with high input costs, currency headwinds, and macroeconomic uncertainties.