Emmi (AO) | Buy | Solid H1 print expected with Americas leading growth

Research evidence excerpt

Emmi (AO) | Buy | Solid H1 print expected with Americas leading growth

Emmi Buy | Target Price: CHF950.00

Company description Management

Emmi is Switzerland's largest dairy company and aims for 2-3% organic sales Ricarda Demarmels, CEO

growth mid-term, which may be conservative given the shift in its portfolio in Oliver Wasem, CFO

recent years to faster-growing international markets and higher-margin niche

and specialty products and away from its low-margin traditional dairy business. Key shareholders

Its protein offering benefits from GLP-1s while it also has gut health products. Free float 42.60%

Emmi is building out a premium indulgence business centred on the acquisition ZMP Invest, Lucern 53.40% Zschweizer Käsermeister. 4.00%

of Mademoiselle Desserts.

Investment case Valuation methodology

Given the shift towards high-value-added products and away We use a mixture of multiples (compared to peers and absolute)

from commoditised dairy, we see the benefits of the mix leading as well as a DCF to reach our target price.

to sales at the higher end, if not above, the company's mid-term Our DCF assumes 2.5% mid-term growth, 2.0% terminal growth,

2-3% target, which we assume could ultimately be raised. and a 7% WACC.

Strong balance sheet enables M&A optionality, as seen by recent Risks to our rating

acquisitions, while it is committed to increasing the dividend Worse than anticipated impact of US tariffs.

payout ratio. Swiss franc strength weighing on translated earnings.

Ongoing operational improvements along with the benefit of Integration risk given sizeable M&A.

mix amid faster growth in specialty and niche products support

improved margins.

Catalysts

Further evidence dairy consumption has risen amid the shift to

healthier and higher protein diets.