Bell Food is growing by 5.5 percent and continues to gain share
Despite distortions in the market, the Bell Food Group also achieved pleasing results in the 2023 financial year. “Our business model has once again proven itself to be a guarantee of stability,” says CEO Lorenz Wyss. All business areas contributed to the positive result. “I’m particularly pleased,” says Wyss, “that the convenience sectors have grown significantly and resumed their previous growth momentum.”
Successful Bell Food Group
The Bell Food Group reported an EBIT of CHF 2023 million in the 164.7 financial year. This is CHF 1.7 million (+1.1%) above the previous year. The base effect triggered by the implemented price increases leads to a slight reduction in the EBIT margin by 0.1 basis points to 3.6 percent. “This shows that we justified the price increases well and implemented them moderately,” explains Lorenz Wyss. At CHF 129.6 million, the annual profit is CHF 1.8 million (+1.4%) above the previous year. The strong operational performance is also reflected in the increase in operating cash flow by CHF 23 million.
At 46 percent, the equity ratio is slightly below the previous year. The Bell Food Group's balance sheet shows the bond issues of CHF 270 million and the repayment of short-term liabilities of CHF 100 million. The bond proceeds will be used to repay a bond at the beginning of 2024 and for strategic investment projects in Switzerland.
Many factors made the market environment challenging
The 2023 financial year was challenging. The unstable weather conditions increased purchasing costs and made planning in the procurement processes more difficult. Procurement of raw materials of the required quality was also challenging, especially for fruits and vegetables. The situation on the energy market remained tense. For example, the price of electricity continued to rise. In addition to the dwindling purchasing power, there was uncertainty caused by the geopolitical situation. These factors led to consumers increasingly preferring cheaper ranges. The changed purchasing behavior had an impact on the product mix and sales of the business areas. Shopping tourism to neighboring countries also grew again in the core market of Switzerland, although not to the level before the corona pandemic.
All business areas are successful
Despite all these challenges, the result of the business is Bell Switzerland very good. As has been the case for years, the biggest drivers were poultry and seafood and, in the year under review, the fresh meat business. “As a leader in the grill segment, we at Bell Switzerland have further expanded our market share,” says Wyss. This was also achieved in the food service sales channel, where new needs in the catering industry were quickly addressed. In the retail sales channel, we managed to exceed the already very good previous year.
Also the business area Bell International achieved a very good result. Thanks to the strategic concentration on the raw ham segment, the increase in the price of pork in Europe was defied and the higher procurement prices were specifically realized in the market. The long-standing focus on raw ham and sustainable poultry products also proved its worth in the reporting year. Market shares were gained in the home markets in both segments.
Thanks to further operational progress in the new plant in Marchtrenk (AT) and market share gains in Romania and Hungary, the business area grew iceberg 2023. However, high inflation in Eastern Europe impacted sales in food service. The procurement market was challenging due to inflation and the difficult availability of plant-based raw materials.
The division outperformed despite inflation-related shifts toward lower-priced segments Hilcona the sales record from the previous year again. There was strong growth in ultra-fresh products such as Birchermüesli, meals and sandwiches in factory quality. The food service and industrial customer business also developed positively. Sales in communal catering and gastronomy are again significantly higher than those from before Corona. After years of intensive growth, the overall market for meat alternatives currently remains stable. The start-up The Green Mountain was able to gain market share in this stagnating environment, both in food service and retail.
hill was able to further expand its market position in 2023. This means that the business area, which is strongly anchored in food service, has recovered from the failures in the pandemic years. In addition to market share gains, volume growth was also achieved in Switzerland, Austria, the Netherlands and Eastern Europe. Due to the high proportion of company catering in Germany, sales volumes are still slightly below the pre-corona year of 2019, despite increases in market share in this market.
Constant distribution: CHF 7 per share
The Bell Food Group is proposing to the general meeting a constant distribution of CHF 7 per share. Half of this comes from the capital contribution reserves and half from the annual results of the Bell Food Group.
Switzerland's investment program: fully on track
The Bell Food Group's pioneering investment program has reached further milestones. The new, ultra-modern deep-freeze center was put into operation in the reporting year. The other modernization and expansion projects are also on track in terms of time and finances. Construction work for the second phase of the factory development plan has started in Schaan (LI): The use of space is being optimized and more efficiency and capacities are being created. “The new infrastructure is strategically important,” says CEO Wyss, “because it strengthens our technological leadership position, secures the core business in Switzerland and thus our profitability for the future.”
Outlook: Continue to expand the successful model
In the past financial year, the Bell Food Group once again proved that it is excellently positioned in the market with its unique business model and that it achieves very good results even under challenging conditions. “With its broad product and country portfolio, the Bell Food Group is ideally prepared for the challenges of the future,” says CEO Lorenz Wyss. “Even in difficult times with a variety of challenges, our group of companies will be able to exploit its strengths and, as in previous years, achieve consistently good results and at the same time successfully assert itself in the market.” We are very well prepared for the future – many strategically important decisions have been made. This means we will operate successfully in the market despite the ongoing geopolitical uncertainties, inflation and increasing cost pressure. “With our clear strategy and our broad product and range mix, we will continue to satisfy the needs and wishes of our customers throughout Europe and thus achieve sustainable good results for our group of companies in the future.”
About Bell Food Group
The Bell Food Group is one of the leading meat and convenience processors in Europe. The offering includes meat, poultry, charcuterie, seafood as well as convenience and vegetarian products. With various brands such as Bell, Eisberg, Hilcona and Hügli, the group covers a wide range of customer needs. Customers include retail, food service and the food industry. Around 13 employees generate annual sales of over CHF 000 billion. The Bell Food Group is listed on the Swiss stock exchange.
