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Emmi is selling its dairy products to Munich-based firm Mutares, which specializes in private equity investments, the group announced on Thursday. The parties decided not to disclose the price and the approval of the competition authorities is awaited.
Emmi completed the sale of Gläserne Molkerei, with more than 120 employees and sales of approximately 100 million euros, after extensive review and discussions with several interested parties. Finally, Mutares, who specializes in return situations, stepped in.
Emmi hopes Mutares can get the dairy in crisis back on the path to success. In recent times, inflation and the consequent decrease in consumers’ willingness to dig a little deeper for organic milk have had a negative impact. Emmi suffered a loss of 13 million francs in 2022.
With the sale of Gläserne Molkerei, acquired in 2016, Emmi now wants to focus even more on lucrative markets and niches such as instant-drink coffee, specialty cheeses, chilled fine desserts and plant-based milk alternatives.
However, the transaction will have a negative impact on the results of the current year. Emmi assumes that the sale will result in a one-time loss of approximately CHF 38 million in operating profit (EBIT) and this profit will decrease by approximately CHF 30 million.
A significant part of this burden arises from the “goodwill recycling” principle required in Swiss GAAP FER accounting. Emmi is now required to write off the goodwill accounted for in equity at the time of acquisition. According to the information obtained, the transaction has a negative impact on cash of around 10 million CHF.
Emmi is adhering to the targets set for 2023 as a whole, adjusted for one-off fees. The original target was 3 to 4 percent organic growth and an EBIT of 275 to 295 million francs. Emmi will deliver details of business progress and goals when presenting her semi-annual results on August 18.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
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