Emmi Group reported a 4.8% rise in first-half core profit to 152.3 million Swiss francs on Wednesday, as the Swiss dairy group raised its full-year organic sales growth outlook on broad-based volume growth and margin gains.
Net sales increased 2.2% year-over-year to 2.32 billion francs, driven by 3.6% organic growth, though partially offset by a 2.1% currency headwind. The Americas division led performance with organic growth of 4.8%, while Europe expanded 2.3%. Switzerland and Latin American markets, including Chile, Spain, Brazil, and Mexico, were key contributors to volume-driven gains.
EBIT rose 5.3% to 152.3 million francs, lifting the EBIT margin to 6.6% from 6.4%. EBITDA increased 3.4% to 230.7 million francs, with the EBITDA margin improving to 9.9% from 9.8%. Net profit grew 3.8% to 100.9 million francs, though minority interests surged to 12.3 million francs due to higher profitability at subsidiaries in Brazil, Mexico, and Chile.
Cash flow from operating activities strengthened 20.6% to 202.6 million francs, with operating cash conversion rising to 88% from 75%. The net debt ratio declined to 1.73 from 1.79, while return on invested capital increased to 7.9% from 7.6%.
The company raised its group-level organic sales growth guidance to a range of 2% to 3% from 1% to 3%, citing sustained volume momentum. Switzerland’s sales outlook was adjusted to a 1% decline to 1% growth, up from a previous range of 2% decline to flat. Guidance for the Americas division remained unchanged at 4% to 6%, while Europe’s outlook stayed at 2% to 4%. EBIT guidance was maintained at 335 million to 355 million francs, and the net profit margin target was kept at 4.8% to 5.3%.
Emmi’s nutrition+ platform gained traction as a new growth driver, while the integration of Emmi Desserts neared completion, with management focusing on realizing synergies. CEO Ricarda Demarmels noted the first-half performance reflected the group’s strategy execution and customer collaboration, emphasizing the relevance of its portfolio amid volume-driven growth.
