From Lucerne to the World: Emmi’s 20-Year Success Story at SIX Swiss Exchange

Coinciding with Emmi's IPO in 2004, tennis star Roger Federer’s face graced countless billboards across Switzerland, with the tagline "The number 1 goes public." In addition to Federer, motorcycle racer Tom Lüthi and musician DJ Bobo were also brand ambassadors around this time. It doesn’t get any more Swiss than that.

Twenty years later, near the shores of Lake Lucerne, we met with Oliver Wasem, CFO of Emmi, at the company’s headquarters. "The collaboration between Emmi and SIX Swiss Exchange has been a success story in many ways," he reflects. "The capital from the IPO, as well as the increased visibility of our company at home and abroad, enabled us to realize our growth plans."

20 years ago this December, investors were able to buy Emmi shares for the first time. The goals of the IPO: raise capital, drive international growth, and increase visibility. After 20 years, it is clear Emmi has achieved these objectives: the company raised around 100 million Swiss francs during the IPO. This was followed by strong growth. In 2004, the IPO year, Emmi’s annual revenue was around 2 billion Swiss francs; by 2023, it had reached 4.2 billion Swiss francs. The share price has increased ninefold during that time too.

Emmi’s international growth plan has also paid off. In 2023, around 60% of revenues came from abroad, through both exports and locally produced products. Since going public, Emmi has made over 40 acquisitions, most of them international, such as the largest producer of feta cheese in the U.S. and premium dessert production facilities in New York and Northern Italy.

Today, Emmi continues to pursue acquisitions to drive growth, including strategic buy outs of dairy business Verde Campo to strengthen its market position in Brazil and Lucerne-based coffee roaster Hochstrasser AG to bolster the Emmi Caffè Latte brand. Additionally, only a few weeks ago, Emmi has acquired the leading French premium patisserie company, Mademoiselle Group.

Overall, Emmi distributes its products to 60 countries. "We’ve built a highly diversified international business. The majority of our revenue from abroad comes from local operations," says the CFO. "This is especially important because our primary market, Switzerland, is already mature."

Over the past 20 years, Emmi has significantly expanded its product range, which now goes well beyond milk, cheese, and butter. Exactly 20 years ago, Emmi launched its Emmi Caffè Latte brand, which is now highly popular across Europe. Other premium products, such as the hand-selected Kaltbach cheese, aged in the caves of the Santenberg in the canton of Lucerne, have also contributed to Emmi’s growth over the years. "The margins are higher in the premium segment," explains Wasem. "Of course, we continue to focus on staple products, but we also aim to grow in the premium segment."

Today, Emmi is a Swiss heritage company with international reach, not least because of its IPO. "The most obvious advantage of going public is the capital," says Oliver Wasem. "If used correctly, you can then finance yourself from your own cash flow. That is exactly what happened with us." He refers to the more than 40 acquisitions Emmi has made in the past 20 years. Emmi has not raised capital since its IPO. "Nevertheless, being listed gives us the option to raise capital if needed, which can be a major advantage," adds Oliver Wasem.

Capital is one thing, but the IPO brought Emmi other benefits as well. The CFO highlights increased visibility: "As a listed company, you can present yourself to the public more effectively. We not only disclose our financials, but also explain our corporate strategy." Emmi also sees advantages as a listed company in terms of debt financing conditions.

An interesting aspect of Emmi’s shareholder structure: the Central Switzerland Milk Producers (ZMP), the Central Switzerland Cheese Makers Cooperative, and the MIBA Cooperative collectively hold around 60% of the shares. The remaining approximately 40% are in free float, with the largest single shareholder, the Capital Group, holding over 5%. The relationship with the shareholders is very positive, says Oliver Wasem, despite the complex structure. "This structure isn’t entirely straightforward," he explains. "Our main shareholders are also our milk suppliers. But we’ve maintained a very trusting and cooperative relationship. They can deliver their milk every day – and over the years, we’ve paid a fair milk price based on the industry’s milk organization’s standards. And, of course, our major shareholders are pleased with our steadily increasing dividends."

The long-standing loyalty of Emmi's second-largest shareholder, Capital Group, sends a strong positive signal. "And, of course, the foundation is our small shareholders," adds Oliver Wasem. The relationship with them is also very positive. This was evident at the last general meeting, where around 2,000 attendees showed up — a record. "And hopefully not just because of the raclette," says Oliver Wasem with a wink.

^{Impressions from Emmi.} 

Public companies have more obligations than private ones. Stricter reporting requirements and increased public scrutiny bring additional effort. But it’s well worth it, says the CFO: "There’s a shift in mindset when you go public. In private companies, shareholders have access to financials. After an IPO, you must be transparent with the world. You have to be ready for that. But in our case, the benefits clearly outweighed the costs."

Being transparent applies to both financials and strategy. That also includes sustainability, which plays a key role in the dairy industry. "Sustainability isn’t a foreign word to us, but an integral part of our strategy" says Oliver Wasem. "We’ve been publishing a sustainability report for 13 years, taking on a pioneering role." Emmi has set goals to reduce Scope 1 and 2 emissions (direct and indirect emissions from purchased energy) by 60% by 2027 and to achieve net-zero emissions by 2050. Emmi’s commitment extends along the entire value chain, beyond its own operations (Scope 3).  Emmi also takes responsibility in the area of animal welfare. For example, 80% of the milk volume purchased by its subsidiary Quillayes Surlat in Chile is certified with the AENOR animal welfare label, making Quillayes Surlat the first South American company to source certified animal welfare milk.

Emmi’s story shows how a Swiss company can bring its products to store shelves worldwide. Emmi’s 20 years on SIX Swiss Exchange have been a success story. Going forward, Emmi will continue to focus on its proven strategy to strengthen its position in Switzerland and grow profitably internationally. Product innovations in strategic niches that meet consumer needs are expected to sustain the strong growth of recent years. Or, as Oliver Wasem aptly puts it: "The future is about building on and continuing what we’ve established as our foundation."