EQS Group-Ad-hoc: Emmi Management AG / Key word(s): Half Year Results Emmi with consistently positive performance 18-Aug-2021 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement.

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Media release

Ad hoc release pursuant to Art. 53 of the Listing Rules

Lucerne, 18 August 2021 - The Emmi Group increased sales by 6.2 % to CHF 1,883.6 million in the first half of 2021, with organic growth of 3.7 % exceeding its own expectations. The positive performance is being driven by renewed momentum in the international business, successful brand concepts such as Emmi Caffè Latte and Kaltbach, and growth in strategic niches such as desserts. In the Swiss domestic market, sales declined as expected following a record first six months in 2020 due to the pandemic. The good overall performance with a further improvement in earnings at EBIT and net profit level reflects the robustness of the business model and is a result of the consistent and long-term strategy. The company's positive long-term outlook is strengthened by an expanded sustainability model geared towards a netZERO 2050 agenda. Despite continued uncertainties and rising input costs worldwide, Emmi is adjusting its sales forecast for the full year upwards slightly and confirming its guidance for EBIT and net profit margin.

In brief: . Total sales growth of 6.2 % or 3.7 % in organic terms (acquisition effect 3.2 %, currency effect -0.7 %) . All business divisions except Switzerland (-3.3 %) with strong organic sales growth (Americas 11.9 %,Europe 4.9 %, Global Trade 14.3 %) . Improvement in gross profit margin (36.1 % to 37.2 %) due to organic growth and acquisition of EmmiDessert USA (formerly Indulge Desserts Group) . EBIT up +15.5 % (CHF 112.0 million to CHF 129.4 million) and improved EBIT margin (6.3 % to 6.9 %) . Net profit up +21.4 % (CHF 81.3 million to CHF 98.7 million) and improved net profit margin (4.6 % to 5.2%) . Increasing pressure on results in 2HY/2021 due to rising input costs (especially packaging and logistics)and latent interest rate and currency risks . Improved full-year forecast for the Group's organic sales growth from the previous range of 1 % to 2 % toa revised 2 % to 3 % due to momentum in the international business . Confirmation of guidance for EBIT (CHF 275 million to 290 million) and net profit margin (5.2 % to 5.7 %)for full-year 2021

Urs Riedener, CEO of the Emmi Group: "Our proven strategy, which is geared towards sustainable and profitable growth, coupled with the consistent development of our company and product portfolio with strong brand concepts, continues to bear fruit. Overall, we succeeded in growing profitably on a broad basis in a difficult and still volatile environment. While we were able to outperform expectations and post strong growth internationally, as expected business in Switzerland settled at pre-crisis levels following the record first half of 2020, with continued significant losses in the food service and industrial customer businesses. At the same time and against the backdrop of the recent floods and heat waves, our recently revised and expanded sustainability plans - which outline how we intend to develop our business over the long term with respect for nature and future generations - have further gained in importance. For the full year, I am confident that we will achieve our annual targets, which have been adjusted slightly upwards in terms of sales, despite the continuing uncertainties with regard to economic develo-pments and the further course of the pandemic."

Key figures 


Amounts in CHF million                       1HY 2021 1HY 2020 
Net sales                                    1,884    1,774 
   of which business division Switzerland    802      829 
   of which business division Americas       710      599 
   of which business division Europe         310      292 
   of which business division Global Trade   62       54 
 
Sales growth                                 6.2 %    6.6 % 
   of which acquisition effect               3.2 %    9.5 % 
   of which currency effect                  -0.7 %   -4.9 % 
   of which organic growth                   3.7 %    2.0 % 
 
EBIT                                         129      112 
   as % of net sales                         6.9      6.3 
Net profit                                   99       81 
   as % of net sales                         5.2      4.6 The overall positive acquisition effect of 3.2 % is due to the following factors:

Positive impact: . Acquisition of Chäs Hütte Zollikon GmbH (Switzerland, 29 July 2020) . Acquisition of Emmi Dessert USA (formerly Indulge Desserts Group, USA, 6 October 2020)

Negative impact: . Sale of Lácteos Caprinos S.A. (Spain, 18 December 2020)

Internal shifts in the distribution channels of individual customers also led to acquisition or divestment effects in the business divisions Americas and Europe. However, these shifts between individual business divisions had no impact on the Group.

Sales performance: strong organic growth in the international business

Emmi took effective advantage of the initial normalisation of the coronavirus situation in key international markets in the first half of 2021 to revive growth momentum and thus achieve good organic sales growth overall. At 3.7 %, this was even higher than the company's own expectations.

All business divisions contributed to the profitable increase in sales of 6.2 % overall (from CHF 1,773.5 million to CHF 1,883.6 million), albeit to a lesser extent in the Swiss domestic market. Following the record sales achieved in the first half of the previous year due to the pandemic, business at home developed as expected and forecasted more complex.

With net sales of CHF 801.8 million (previous year: CHF 828.8 million), the Swiss business saw an organic decline of 3.3 %, primarily on the back of the exceptionally high organic growth in the same period of 2020 (3.8 %). This is mainly attributable to the retail business, which suffered significant setbacks compared to the exceptional previous year driven by pantry loading and border closures. The resurgence of old patterns of consumer behaviour, including shopping tourism, combined with further restaurant closures in some areas and the slow recovery of business with industrial customers, left their mark. The negative effects are particularly visible in the dairy products and cheese segments, which account for the lion's share of sales. On the other hand, brand and speciality concepts - in particular Emmi Caffè Latte and Kaltbach cheese - continued to perform well. The general milk price increase in the current year likewise propped up sales.

The business division Switzerland accounted for 42.5 % of Group sales (previous year: 46.7 %). 


Business Division        Sales    Sales    Difference Acquisition Organic 
Switzerland              1HY 2021 1HY 2020 2021/2020  effect      growth 
Dairy products           330.2    343.1    -3.8 %     -           -3.8 % 
Cheese                   189.2    199.7    -5.2 %     -           -5.2 % 
Fresh products           172.4    172      0.2 %      -           0.2 % 
Fresh cheese             53       55.3     -4.1 %     -           -4.1% 
Powder/concentrates      26.8     31.6     -15.2 %    -           -15.2 % 
Other products/services  30.2     27.1     11.4 %     1.1 %       10.3 % 
Total                    801.8    828.8    -3.3 %     0.0 %       -3.3 %

The business division Americas includes the Emmi Group companies in the US, Chile, Spain (excluding Lácteos Caprinos), Tunisia, Brazil, France, Mexico and Canada.

Sales in the business division Americas improved in the first half of 2021 from CHF 598.6 million to CHF 709.5 million. The overall growth of 18.5 % compared with the same period of the previous year is attributable to the acquisition of Emmi Dessert USA, which is developing well, and the high organic growth of 11.9 % (previous year: -1.0 %). Alongside the growth markets of Brazil, Tunisia, Chile and Mexico, this was supported in particular by the recovery of the companies based in the USA, which took a major hit in the previous year due to the coronavirus-related measures implemented in the food service sector.

The business division Americas accounted for 37.7 % of Group sales (previous year: 33.8 %). 


Business Division       Sales    Sales    Difference Acquisition Currency Organic 
Americas                1HY 2021 1HY 2020 2021/2020  effect      effect   growth 
Cheese                  269.9    235.1    14.8 %     -           -4.1 %   18.9 % 
Dairy products          188.5    175      7.7 %      -           -2.1 %   9.8 % 
Fresh products          160.8    96.6     66.4 %     63.9 %      -3.0 %   5.5 % 
Fresh cheese            32.9     30.8     6.6 %      -           -14.8 %  21.4 % 
Powder/concentrates     12.5     11       14.1 %     -           -16.9 %  31.0 % 
Other products/services 44.9     50.1     -10.4 %    -           0.2 %    -10.6 % 
Total                   709.5    598.6    18.5 %     10.3 %      -3.7 %   11.9 %

The business division Europe includes the Emmi Group companies in Germany, Italy, the Netherlands, the UK, Austria and Lácteos Caprinos in Spain (sold on 18 December 2020).

Sales in the business division Europe amounted to CHF 310.4 million in the first half of 2021, compared with CHF 291.9 million in the same period of the previous year. This resulted in overall growth of 6.3 %; excluding acquisition and currency effects, organic growth was 4.9 % (previous year: 2.1 %). Strong growth with Emmi Caffè Latte, Italian speciality desserts (both in Fresh products) and vegan products (in Other products/services) was weakened by the negative performance of the Dairy products and Powder/concentrates segments.

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