Results of the first half of 2015

Transcription

1 Results of the first half of 2015 Presentation for analysts and investors Lucerne, 18 August 2015

2 Overview of the first half of 2015 Results for the first half of 2015 Success factors Focus on the second half of the year, outlook

3 Key figures for the first half of 2015 Organic decline in sales lower than expected, income above expectations Net sales CHF 1,563 million Decline of 3.8 % (organic: decline of 1.7 %) Negative currency effect: CHF 57 million Adjusted EBIT CHF 85 million* Increase of 14.3 % EBIT margin 5.4 % (1HY 2014: 4.6 %) Adjusted net profit CHF 47 million* Increase of 3.1 % Net profit margin 3.0 % (1HY 2014: 2.8 %) * 2015: EBIT and net profit adjusted for non-recurring effects of CHF -0.5 million and CHF -0.4 million respectively. These are attributable to the extraordinary sale of property, plant and equipment. 2014: EBIT and net profit adjusted for non-recurring effects of CHF million and CHF million respectively. These are attributable to the extraordinary impairment in Italy less the extraordinary gains on the sale of property, plant and equipment. First half of 2015, Results presentation, 18 August 2015 Page 3

4 Key success factors in the first half of 2015 Important progress of the subsidiaries abroad Swift implementation of price increases abroad Cost savings with our international suppliers Efficiency gains with Operational Excellence measures Cost saving in logistics, maintenance and energy First half of 2015, Results presentation, 18 August 2015 Seite 4

5 Sales split by business division Switzerland and Americas according to plan, Europe better than expected Switzerland Net sales CHF 874 million Decline of 3.0 % Americas Net sales CHF 387 million Decline of 5.1 % (organic: increase of 3.0 %) Europe Net sales CHF 231 million Decline of 1.3 % (organic: decline of 0.7 %) Global Trade Net sales CHF 71 million Decline of 13.8 % (organic: decline of 13.3 %) Organic = adjusted for acquisition and currency effects First half of 2015, Results presentation, 18 August 2015 Page 5

6 Geographic distribution of the business divisions Country overview First half of 2015, Results presentation, 18 August 2015 Page 6

7 Key influential factors: Switzerland Drop in sales due to high import pressure Supporting factors Fresh products: growth of Emmi Caffè Latte and Pure Swiss Yogurt New product launches: YoQua and Pure Swiss Yogurt Drink Inhibiting factors Cheese: increase in imports and associated decline in sales (brands and AOP) Fresh cheese: price reductions due to high import pressure Fresh products: non-coffee drinks below expectations Price competition in the industrial business Retail trade in general: declining sales First half of 2015, Results presentation, 18 August 2015 Page 7

8 Key influential factors: international Encouraging sales development by key brands, AOP cheese under pressure Supporting factors Spain: Emmi Caffè Latte and lactose-free range UK: Emmi Caffè Latte and Onken USA: cheese produced locally and imported from Switzerland Tunisia: milk and desserts In general: Italian desserts Acquisition effect of Gläserne Molkerei Inhibiting factors Europe: AOP cheese, especially Emmentaler Chile: difficult economic environment Sale of Trentinalatte and the business activities of Emmi Penn Yan First half of 2015, Results presentation, 18 August 2015 Page 8

9 Sales by business division Relative size of individual business divisions largely unchanged Americas 24.8 % (CHF 387 million) Europe 14.8 % (CHF 231 million) Top three countries, sales Switzerland USA Spain Switzerland 55.9 % (CHF 874 million) Global Trade 4.5 % (CHF 71 million) Group net sales in first half of 2015: CHF 1,563 million First half of 2015, Results presentation, 18 August 2015 Page 9

10 Sales by product group Slightly higher proportion of dairy products, product portfolio still high quality Dairy products 32 % (CHF 504 million) Fresh products 25 % (CHF 384 million) First half of 2014 Cheese: 30 % Dairy products: 30 % Fresh products: 26 % Fresh cheese: 6 % Powder/concentrates: 4 % Other products/services: 4 % Other products/services 5 % (CHF 81 million) Powder/concentrates 3 % (CHF 45 million) Fresh cheese 5 % (CHF 82 million) Cheese 30 % (CHF 467 million) Group net sales in first half of 2015: CHF 1,563 million First half of 2015, Results presentation, 18 August 2015 Page 10

11 Overview of key figures for the first half of 2015 Sales as planned, adjusted earnings higher than previous year Amounts in CHF million 1HY15* 1HY14** 1HY13*** 1HY12 1HY11 Net sales 1,563 1,625 1,567 1,339 1,310 Earnings before interest, taxes, depreciation and amortisation (EBITDA) as % of net sales Earnings before interest and taxes (EBIT) as % of net sales Net profit as % of net sales Headcount (full-time equivalents) 5,307 5,310 5,112 3,820 3, * 2015: EBITDA and EBIT adjusted for non-recurring effects of CHF -0.5 million and net profit of CHF -0.4 million. These are attributable to the extraordinary sale of property, plant and equipment. ** 2014: EBITDA adjusted for non-recurring effects of CHF 1.1 million, EBIT of CHF million and net profit of CHF million. These are attributable to the extraordinary mpairment in Italy less the extraordinary gains on the sale of property, plant and equipment. *** EBITDA and EBIT adjusted for non-recurring effects of CHF 2.4 million and net profit of CHF 2.0 million. These are attributable to the extraordinary gains on the sale of property, plant and equipment. First half of 2015, Results presentation, 18 August 2015 Page 11

12 Development of net sales in the first half of 2015: Group Decline at Group level 3.8 % Group sales in CHF million +1.4% -3.5% -1.7% Extraordinary factors (positive impact on sales): Increased stake in Gläserne Molkerei (Germany) 1 Acquisition of the cheese business of JL Freeman (Canada) 2 Extraordinary factors (negative impact on sales): Sale of Trentinalatte (Italy) 3 Sale of business activities of Emmi Penn Yan (USA) 4 1 Stake increased on 1 October Purchased on 15 April Sold on 31 October Sold on 18 December Acq. FC Org Acq: acquisition effect; FC: currency effect; org: organic growth First half of 2015, Results presentation, 18 August 2015 Page 12

13 Development of net sales in the first half of 2015: Switzerland Decline in sales reflects tougher environment Sales Switzerland in CHF million +0.0% +0.0% -3.0% Dairy products Sales CHF million, -3.3 % - Lower milk prices - Slightly lower volumes Cheese Sales CHF million, -6.0 % - Decline in AOP and branded cheese - Significant increase in imports (+7.8 %) Fresh products Sales CHF million, -0.4 % - Single-digit growth in Emmi Caffè Latte - Positive boost from Pure Swiss Yogurt and YoQua - Declines in other drinks 2014 Acq. FC Org Acq: acquisition effect; FC: currency effect; org: organic growth First half of 2015, Results presentation, 18 August 2015 Page 13

14 Development of net sales in the first half of 2015: Americas Significant organic growth, negative currency situation Sales Americas in CHF million -1.8% -6.3% +3.0% Chart to be updated + 1.2% Cheese Sales CHF million, +5.5 % (org %) - Growth in locally manufactured cow s and goat s milk cheese - Positive acquisition effect: J.L. Freeman Dairy products Sales CHF million, % (org %) - Growth in Tunisia - Decline in Chile - Negative acquisition effect: Sale of business activities of Emmi Penn Yan 2014 Acq. FW org Acq: acquisition effect; FC: currency effect; org: organic growth Fresh products Sales CHF 86.1 million, % (org %) - Sales growth in Tunisia - Positive performance by lactose-free range from Kaiku in Spain - Growth of Emmi Caffè Latte in Spain - Negative acquisition effect: Emmi Pan Yan First half of 2015, Results presentation, 18 August 2015 Page 14

15 Development of net sales in the first half of 2015: Europe Sales better than expected, systematic implementation of price increases Sales Europe in CHF million +12.5% -13.1% -0.7% Fresh products Sales CHF million, % (org %) - Growth of Emmi Caffè Latte - Positive boosts from Onken in the UK - Positive performance of dessert business - Negative acquisition effect: Trentinalatte Cheese Sales CHF 52.7 million, % (org. -5.5%) - Lower sales of AOP and branded cheese, especially Emmentaler - Positive acquisition effect: Gläserne Molkerei 2014 Acq. FC Org Dairy products Sales CHF 46.7 million, % (organic %) - Higher sales of Dutch AVH Dairy Trade - Positive acquisition effect: Gläserne Molkerei Acq: acquisition effect; FC: currency effect; org: organic growth First half of 2015, Results presentation, 18 August 2015 Page 15

16 Overview of the first half of 2015 Results for the first half of 2015 Success factors Focus on the second half of the year, outlook

17 Net sales to gross profit Gross profit virtually stable, higher gross profit margin in CHF million Net sales Gross profit as % of net sales 1HY15 1, HY14 1, D in % Increase in gross profit margin thanks to: price increases abroad lower procurement costs in Switzerland and abroad disposal of entities with unsatisfactory profitability First half of 2015, Results presentation, 18 August 2015 Page 17

18 Gross profit to adjusted EBIT (extract) Disproportionately low increase in operating expenses in CHF million Net sales Gross profit 1HY15 1, HY14 1, D in % Substantial reduction in costs thanks to savings and efficiency measures as % of net sales Operating expenses as % of net sales EBITDA as % of net sales * ** Depreciation and amortisation *57.9 ** EBIT (adjusted) as % of net sales * ** * After adjustment of the extraordinary sale of property, plant and equipment. ** After adjustment of non-recurring effects from extraordinary impairments in Italy less the extraordinary gains on the sale of property, plant and equipment. First half of 2015, Results presentation, 18 August 2015 Page 18

19 Extraordinary income and expenses Extraordinary effects due to impairments and the sale of property in CHF million 1HY15 1HY14 EBIT published Impairment Italy Income generated from sale of property, plant and equipment EBIT (adjusted) : The extraordinary sale of property, plant and equipment resulted in a negative impact of CHF -0.5 million (EBIT) and CHF -0.4 million (net profit) in CHF million 1HY15 1HY14 Net profit published Impairment Italy Income generated from sale of property, plant and equipment Additional tax expense Net profit (adjusted) : The extraordinary impairment in Italy less the income from the sale of property, plant and equipment resulted in a negative impact of CHF million (EBIT) and CHF million (net profit) First half of 2015, Results presentation, 18 August 2015 Page 19

20 Overview of operating expenses Savings and efficiency measures take effect in CHF million 1HY15 1HY14 D in % Personnel expenses as % of net sales Marketing and sales-related expenses as % of net sales Occupancy expenses, maintenance, leasing Energy, operating materials and supplies Logistic expenses Other operating expenses Operating expenses as % of net sales Total operating expenses and marketing and sales-related expenses unchanged from previous year (in % of net sales) Significantly lower expenses for maintenance, occupancy expense, energy and logistics Positive influence from divestments in 2014 First half of 2015, Results presentation, 18 August 2015 Page 20

21 EBIT to net profit Adjusted net profit slightly higher than previous year Adjusted Published in CHF million 1HY15* HY14** D 1HY15 1HY14 D EBIT Gains from associated companies Financial result Earnings before taxes (EBT) Taxes Average tax rate in % Minority interests Net profit as % of net sales * EBIT and net profit adjusted for non-recurring effects of CHF -0.5 million and CHF -0.4 million respectively. These are attributable to the extraordinary sale of property, plant and equipment. ** EBIT and net profit adjusted for non-recurring effects of CHF million and CHF million respectively. These are attributable to the extraordinary impairments in Italy less the extraordinary gains on the sale of property, plant and equipment. First half of 2015, Results presentation, 18 August 2015 Page 21

22 Equity ratio in the first half of 2015 Improvement in equity ratio in CHF million in % Equity ratio strengthened further Flexibility for future financing maintained Bilanzsumme EK-Quote Target equity ratio in % : balance sheet date as of year-end; 2015: balance sheet date 30 June First half of 2015, Results presentation, 18 August 2015 Page 22

23 Overview of the first half of 2015 Results for the first half of 2015 Success factors Focus on the second half of the year, outlook

24 Strong Swiss franc: measures aimed at mitigating effects Range of measures implemented quickly and systematically Price increases abroad Emmi savings Measures by third parties: suppliers in Switzerland/abroad All parts of the value chain made their contribution Measures succeeded in offsetting losses First half of 2015, Results presentation, 18 August 2015 Page 24

25 Factors helping to boost earnings Increase in earnings is primarily attributable to foreign companies Transfer of efficiency programmes abroad Sale of entities with unsatisfactory profitability, especially Trentinalatte Clear priorities in investments No working hour measures or redundancies -> Employee motivation maintained as a result First half of 2015, Results presentation, 18 August 2015 Page 25

26 Overview of the first half of 2015 Results for the first half of 2015 Success factors Focus on the second half of the year, outlook

27 Key measures in the second half of 2015 Focus on the strengths of Emmi, continued strict cost management Highlighting innovative strength Cheese: New variation of Gerber Fondue Dessert: Launch of eclairs Fresh products: New varieties of Pure Swiss Yogurt and YoQua Reinforcement of key brands Targeted marketing activities for brands such as Emmi Caffè Latte, Pure Swiss Yogurt and Kaltbach Rebranding of Bontà Divina Cost management Continued systematic implementation of range of measures First half of 2015, Results presentation, 18 August 2015 Page 27

28 The market environment in 2015 Influential factors Positive Switzerland Innovations and brand development Established product concepts Efficiency measures at Emmi facilities Lower milk prices Lower prices for raw materials from abroad International Organic growth (desserts, Roth, Cypress Grove Chèvre, Caffè Latte, lactose-free Kaiku range) US and Tunisia markets Additional capacity in the US and Italy Acquisition of the cheese business of J.L. Freeman Savings and efficiency programmes Limiting Strong price pressure Further increase in import pressure Continued strong retail tourism Bold: new / updated criteria vis-à-vis presentation from March 2015 Weak southern European markets (especially Italy and France) Lower euro Currency developments in Chile and Tunisia Acceptance of price increases for AOP cheese Slowdown in Asian and South American markets First half of 2015, Results presentation, 18 August 2015 Page 28

29 Milk price developments in 2015 Difference between Switzerland and Germany has increased 70 Milk price comparison (conventional industrial milk, centimes/kg milk) CH: 10 centimes Germany: 16 centimes Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez CH 2015 CH 2014 DE Germany DE Germany Source: BLW, AMI First half of 2015, Results presentation, 18 August 2015 Page 29

30 Purchase of cheese business of J.L. Freeman Leading importer of speciality cheeses in Canada, primarily from Switzerland Advantages for Emmi: Expansion of position in North America Secured market access for exports from Switzerland Expansion of value chain The company: Sales in the cheese business in 2014: roughly CHF 35 million 18 employees (FTE) Headquarters in Boucherville/Montreal Product portfolio: Le Gruyère AOP, Emmentaler AOP, fondue and other Swiss specialities Cheese from Italy and France First half of 2015, Results presentation, 18 August 2015 Page 30

31 Outlook for 2015 as a whole Sales target unchanged, income targets adjusted Organic growth for 2015, earnings Forecast March 2015 Organic growth for 2015, earnings New forecast Sales Group -3 % to -2 % Unchanged Sales Switzerland -3 % to -2 % -4 % to -3 % Sales Americas 3 % to 5 % Unchanged Sales Europe -6 % to -4 % -4 % to -2 % EBIT, CHF million 150 to to 180 Net profit margin just under 3 % just over 3 % (Figures assume constant raw milk prices) First half of 2015, Results presentation, 18 August 2015 Page 31

32 Medium-term objectives 2 % 3 % organic growth per year for the Group Organic Growth, earnings Sales Group 2 % 3 % Sales Switzerland 0 % 1 % Sales Americas 6 % 8 % Sales Europe 1 % 3 % Net profit margin Just over 3 % (Figures assume constant raw milk prices) First half of 2015, Results presentation, 18 August 2015 Page 32