The Bell Food Group has reported that sales revenue grew by 7.3% to CHF 1.73 billion in the first half of 2017, largely due to a number of acquisitions.
The Swiss food group, which manufactures meat and seafood products, saw an 8.5% increase in EBITDA year-on-year, with net profit increasing 9.1% to CHF 39.5 million.
The company says that this performance is 'very encouraging' given the fact that raw material prices for pork have risen substantially in Germany, France and Eastern Europe.
Regional Performance
Bell Switzerland increased its sales revenue by 3.1% to CHF 926.7 million during this period, largely due to the acquisition of Geiser and Cher-Mignon last year. Adjusted for acquisition effects, sales revenue grew by 0.3%.
The company's German business saw sales revenue increase 1.2% to CHF 215 million, while its international division experienced growth of 31% to CHF 292.8 million, driven by the acquisition of Austrian poultry specialist Hubers, and the 'substantial increase' in product sales in Poland.
Outlook
Bell says that its acquisition of the Hilcona Group, which was announced at the end of May, will allow the company to expand its business in the convenience market.
The company is planning to invest €30 million in a new production plant for convenience products in Linz, Austria, which is expected to be commissioned in autumn 2018.
The Bell Food Group does not expect raw material prices for pork to fall substantially in Europe in the second half of the year, and so will continued to reduce costs and focus on sales strategy. The company says that its current investment plans will help 'ensure its long-term market success'.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
