Wednesday, 8 October 2025 Reading time : 3 minutes

Shares in the Lucerne-based milk processor Emmi have underperformed on the Swiss stock market this year. While the overall market, as measured by the SPI, has gained 11.6% since the beginning of January (as of 7 October 2025, total return), Emmi shares have fallen by 2.7%.

However, the Swiss group's business is performing remarkably robustly, as the half-year figures show. Emmi increased its sales by 12% year-over-year and profits by 4.3% year-over-year in a challenging market environment. The company has also managed to defend its margins thanks to efficiency improvements and price adjustments. Sales growth is widespread and, according to Emmi, particularly encouraging in Brazil, Chile and Mexico. The company also appears to be well positioned in terms of its products, reporting rising sales figures for ready-to-drink beverages such as Emmi Caffè Latte and premium desserts.

Nevertheless, scepticism currently prevails on the stock market. There are various reasons for investors' caution. While Emmi's global presence allows it to access high-growth markets, the strong Swiss franc is reducing its foreign currency earnings. In fact, Emmi cites the impact of foreign currencies as a factor hindering sales growth. In addition, rising raw material costs are putting pressure on margins. Both factors are likely to continue causing headwinds in the coming months.

However, Emmi is relaxed about US tariffs: according to its own figures, the dairy processor produces around 85% of the products sold in the US locally. Although import tariffs are affecting Swiss cheese exports, Emmi claims that their impact on the group's results is limited. Despite these challenges, the group remains confident for the full year and continues to expect an increase in sales and profits.

Analysts too acknowledge catch-up potential to Emmi's equities. According to Bloomberg, the twelve-month price target for the shares is CHF 896.00. At the close of trading on 7 October, they were trading at CHF 701.00. The research team of Zürcher Kantonalbank also rates the equities as overweight.

Investors who believe Emmi will see moderate price gains may be interested in the outperformance certificate on the milk processor. With this product, investors participate disproportionately in price gains, while the upside participation is limited (cap level 107.5%). The maximum return at the end of the seven-month term is thus 15%.

The product is in subscription until October 10, 2025.

Product details
Upside participation: 200%
Cap level: 107.50% (maximale Rendite 15%)
Issue price: CHF 699.00
Term: 7 months
Valor: 134 140 055

Termsheet

Indicative terms

 

Disclaimer
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