Quick Facts
- A global leader in Swiss dairy and premium desserts, Emmi has evolved from a traditional milk processor into a high-margin powerhouse by expanding into ready-to-drink coffee and international specialty treats.
- Surprising Growth: 2025 was a good year for Swiss dairy maker Emmi. Total sales went up by 9.1% to CHF 4.7 billion. Their organic growth hit 4.3%, which was much better than what the company and market experts expected.
- Smart New Purchases: Emmi is expanding beyond regular milk. They recently bought the Mademoiselle Desserts Group in France and The English Cheesecake Company. This makes them a major player in the global market for premium desserts, where profit margins are higher.
- Winning in the Americas: While the Swiss market is steady, Emmi's business in the Americas is booming. It grew by 6.4% in 2025 because consumers in Brazil, Chile, and Mexico are driving sales of their products.
Pros
- Moving into Better Products: Emmi is smartly focusing on items that make more money than basic dairy. Buying the Hochstrasser coffee roastery helps them sell more ready-to-drink coffee. These products give them better control over their prices.
- Safe and Steady: People always need to eat, even when the economy is tough. Emmi’s recent growth came from selling more items, not just raising prices. This shows strong customer loyalty and helps secure Emmi a high Safety Rank.
- Good Payouts for Investors: Emmi is financially healthy and pays a reliable dividend. They plan to pay CHF 16.50 per share for 2025, proving they bring in strong cash flow.
Cons
- Costs and Currency: Manufacturing food products means dealing with changing prices for raw materials like energy and milk. Also, because Emmi is a Swiss company that sells globally, the strong Swiss franc hurt their 2025 results by 3.1%.
- Integrations ahead: Emmi’s recent acquisitions, including Verde Campo, Hochstrasser, Mademoiselle Desserts, and The English Cheesecake Company, mean that management has the hard work of ensuring the different businesses run smoothly when integrated into the group.
- Slow Growth in Basic Milk: The everyday dairy market in Europe is crowded and shows slow growth. This can be a limiting factor in the company's Growth Rank.
This month, we are making a change to the Obermatt Swiss Pearls Index (OMSP1). We bid farewell to EFG International and welcome back a familiar face: Emmi. Emmi is no stranger to OMSP1. It was a part of our portfolio a while ago, and after taking a break, it meets our strict rules once again. It is shifting away from simple, everyday dairy products and focusing on high-growth areas. Building an "Emmi Desserts Powerhouse" and expanding the popular Emmi Caffè Latte brand shows they know how to give customers the treats and convenient drinks that are now popular.
Beyond its smart product shifts, Emmi is safe and steady. Even when household budgets are tight, people continue to buy their favorite food and drinks. In fact, Emmi’s recent growth was driven by selling more products, not just raising prices, earning them a top-notch Safety Rank. Furthermore, they pass this financial health directly on to investors. Thanks to strong cash flows, they offer a highly reliable dividend of CHF 16.50 per share for 2025.
For the OMSP1, Emmi brings a safe, solid foundation. It protects the portfolio against economic bumps while still offering real growth, thanks to its smart acquisitions and strong success in the Americas.
Invest in a professionally managed index of 36 stocks selected each month using the Obermatt method. Available for retail investors on the SIX Swiss Exchange (Ticker: OMSP1). Learn more