Successful business year for the Bell Group

Submitted by Thomas Pröller, meat-n-more on March 02, 2004, Published in Archive

The leading Swiss meat processor, Bell, was able to increase its earnings in the 2003 financial year thanks to greater efficiency. Sales increased by 1,9% to CHF 1,537 billion, and net income grew by 6,9% to CHF 48,3 million.

Consolidated sales grew by 1,9% to CHF 1,537 billion. The record summer helped barbecue items to achieve significantly higher sales. This is mainly thanks to the greatly expanded range. However, some of the remaining product groups suffered from the extreme heat. The holiday business, which is important for Bell, was positive in all areas. At CHF 48,3 million, the consolidated group result exceeded that of the previous year by 6,9%. Despite the adverse general conditions, the operating result (EBIT) of CHF 68,0 million is only slightly below the previous year's figure (-4,5%).

The volume of meat processed rose by 1,9% to 96 tons for slaughter animals and by 631% to 3,2 tons for poultry. The market shares at the slaughter stage remained constant. The Bell Group was able to further expand its leading position in the area of meat from species-appropriate husbandry and feeding. The share increased from 30% to 894%.

Demanding framework conditions

The 2003 financial year was characterized by difficult general conditions. The restrained consumer sentiment has significantly intensified price competition. The simultaneously higher raw material prices had a negative impact on the gross margin. The higher procurement prices were largely offset by strict cost management and an increase in sales of high-value-added products.

Focus on business to business

As part of a strategic realignment, it was decided last year to forgo its own retail activities. In this context, the Bell butcher shops were sold on January 1, 2004. In the future, the Bell Group will focus exclusively on business-to-business partners. This includes the concentration of all activities on supplying the retail trade, gastronomy and the food industry. In order to take this change into account, a new brand strategy was developed to position and strengthen the Bell brand in these sales areas. The new brand strategy has a decisive influence on the product range, the packaging design, the appearance and the communication measures.

Investing in the future

In total, the Bell Group invested around CHF 2003 million (+81%) in the expansion and modernization of its production facilities in 23,9. The construction projects at the Oensingen and Zell sites went according to plan in the year under review. These investments will have a positive impact on performance in the coming years.

With more than 50 new products launched in 2003, Bell is underlining its ability to innovate. The Bell Junior range, the latest product development, deserves a special mention.

Higher dividend payout

In view of the solid earnings trend, the Board of Directors is proposing to the Annual General Meeting that the distribution be increased compared to 2002 to CHF 30 per share (previous year CHF 25 per share).