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1. Company Snapshot

1.a. Company Description

Emmi AG, together with its subsidiaries, develops, produces, and markets a range of dairy and fresh products primarily in Switzerland, North and South America, Africa, Asia/Pacific, and the rest of Europe.The company operates through Dairy Products, Cheese, Fresh Products, Fresh Cheese, Powder/Concentrates, and Other Products/Services segments.It offers goat milk, cream, butter, cheese, desserts, ice cream, yogurt.


The company also exports its products to approximately 60 countries.The company was founded in 1993 and is headquartered in Lucerne, Switzerland.Emmi AG is a subsidiary of ZMP Invest AG.

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1.b. Last Insights on EMMN

Emmi AG's recent performance was negatively impacted by underlying business conditions, despite a slight upward revision in full-year organic sales growth outlook. The company's half-yearly results revealed ongoing challenges, which led analysts to update their estimates. Furthermore, the dairy company's reliance on strong performances in specific markets, such as Brazil, Chile, and Mexico, may not be sustainable in the long term, adding to the uncertainty.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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An Intrinsic Calculation For Emmi AG (VTX:EMMN) Suggests It's 32% Undervalued

Sep -16

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Emmi AG (VTX:EMMN) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates

Aug -27

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Emmi Shares Rise After Dairy Company Nudges Up Sales Outlook

Aug -20

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Swiss dairy group Emmi enters deal to acquire Mademoiselle Desserts

Jul -05

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Emmi CFO Sacha Gerber departs after less than 18 months in role

Jun -14

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Emmi Group to acquire Swiss coffee roaster Hochstrasser

Jun -13

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Swiss dairy giant Emmi Group acquires coffee roaster Hochstrasser

Jun -12

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E.ON (ETR:EOAN) shareholders have earned a 10% CAGR over the last five years

Apr -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.07%)

6. Segments

Fresh Products

Expected Growth: 1.2%

Emmi AG's Fresh Products segment growth of 1.2% is driven by increasing demand for healthy and convenient food options, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, quality, and sustainability resonates with consumers, contributing to the segment's growth.

Cheese - Natural Cheese

Expected Growth: 1.1%

Emmi AG's Natural Cheese growth is driven by increasing demand for premium and artisanal products, health-conscious consumers seeking high-protein and low-lactose options, and expanding distribution channels in emerging markets. Additionally, the company's focus on sustainable and environmentally friendly production processes resonates with eco-aware consumers, contributing to the 1.1% growth.

Dairy Products - Milk

Expected Growth: 0.9%

Emmi AG's milk segment growth of 0.9% is driven by increasing demand for premium and organic products, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on sustainability and digitalization efforts have improved operational efficiency, contributing to the growth.

Dairy Products - Butter and Margarine

Expected Growth: 0.8%

Emmi AG's Dairy Products - Butter and Margarine segment growth of 0.8% is driven by increasing demand for premium and organic products, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, quality, and sustainability contributes to its growth. However, intense competition and fluctuating raw material prices pose challenges.

Fresh Cheese

Expected Growth: 1.3%

Emmi AG's Fresh Cheese segment growth of 1.3% is driven by increasing demand for healthy and natural products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, quality, and sustainability resonates with consumers, contributing to the segment's growth.

Dairy Products - Cream

Expected Growth: 1.0%

Emmi AG's Cream dairy product growth is driven by increasing demand for premium and organic products, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on sustainability and innovative products, such as lactose-free and high-protein cream, contribute to its 1.0% growth.

Other Products

Expected Growth: 0.7%

Emmi AG's 0.7 growth in Other Products is driven by increasing demand for premium and specialty cheeses, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, quality, and sustainability resonates with consumers, leading to higher sales and revenue growth.

Powder/Concentrates

Expected Growth: 1.4%

Emmi AG's Powder/Concentrates segment growth of 1.4% is driven by increasing demand for convenient and healthy beverages, particularly among health-conscious consumers. Additionally, the company's strategic expansion into emerging markets, product innovation, and efficient supply chain management contribute to the segment's growth.

Cheese - Processed Cheese

Expected Growth: 1.2%

Emmi AG's Processed Cheese segment growth of 1.2% is driven by increasing demand for convenient and affordable dairy products, particularly in emerging markets. Additionally, the company's focus on innovation, such as introducing new flavors and packaging, has helped to attract a younger demographic and expand market share.

Services

Expected Growth: 0.6%

Emmi AG's 0.6% growth in services is driven by increasing demand for premium dairy products, expansion into emerging markets, and strategic partnerships. Additionally, the company's focus on sustainability and digitalization efforts have contributed to its growth. Furthermore, Emmi's diversified product portfolio and strong brand recognition have enabled it to maintain a competitive edge in the market.

7. Detailed Products

Emmi Milk

Fresh milk and dairy products for retail and foodservice customers

Emmi Cheese

Wide range of cheese products, including Emmental, Gruyère, and Sbrinz

Emmi Yogurt

Variety of yogurt products, including natural, flavored, and probiotic yogurts

Emmi Cream

Heavy cream, whipping cream, and other cream products for retail and foodservice customers

Emmi Butter

Salted and unsalted butter products for retail and foodservice customers

Emmi Ice Cream

Variety of ice cream products, including premium, natural, and low-fat options

Emmi Fresh Desserts

Range of fresh desserts, including tiramisu, panna cotta, and crème brûlée

Emmi Caffè Latte

Ready-to-drink coffee beverages, including caffè latte and cappuccino

8. Emmi AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Emmi AG's dairy products have some substitutes available in the market, but they are not very close. The company's strong brand image and high-quality products reduce the threat of substitutes.

Bargaining Power Of Customers

Emmi AG's customers have limited bargaining power due to the company's strong brand image and wide distribution network. The company's products are widely available, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Emmi AG's suppliers have some bargaining power due to the company's dependence on high-quality milk and other raw materials. However, the company's strong relationships with suppliers and its ability to negotiate prices reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is low in the dairy industry due to the high barriers to entry, including high capital requirements and strict regulations. Emmi AG's strong brand image and established distribution network also make it difficult for new entrants to compete.

Intensity Of Rivalry

The dairy industry is highly competitive, with many established players competing for market share. Emmi AG faces intense competition from other dairy companies, which can lead to price wars and advertising battles.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.53%
Debt Cost 3.95%
Equity Weight 65.47%
Equity Cost 5.25%
WACC 4.80%
Leverage 52.75%

11. Quality Control: Emmi AG passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

728.0$

Current Price

728$

Potential

-0.00%

Expected Cash-Flows