Switzerland’s Bell Food Group has posted 6.2% year-on-year growth in first-half revenue, to CHF 2.1 billion (€2.2 billion), driven by the recovery of the convenience segment and price increases due to inflation.
However, the company witnessed a 4.0 % decline in EBIT, to CHF 63 million (€65.2 million), as inflation continued to affect the business.
Half-year net profit amounted to CHF 40.2 million (€41.6 million), or CHF 10.9 million (€11.3 million) below the previous year, as it was impacted by negative currency developments.
“We can look back on a good first half of 2022,” said Lorenz Wyss, CEO of Bell Food Group.
“This is all the more encouraging as we had to cope with sharply rising inflation in the procurement market.”
Divisional Performance
The convenience unit, which includes Eisberg, Hilcona and Hügli, benefited from momentum in the food service segment as markets recovered from the pandemic.
Eisberg made good progress on the back of its performance in Switzerland and Eastern Europe, the company noted.
Hilcona’s performance was driven by growth momentum in the market as the food service channel as well as sandwiches and pasta product categories recovered.
Hügli's performance was boosted by products offering a higher degree of convenience and its Italian range.
Elsewhere, the decline in retail sales did now allow Bell Switzerland to duplicate its good performance in this period when compared with the pandemic years.
Bell International reported ‘gratifying’ organic growth and managed to hold on to or even expand its position in a contracting market, despite severe inflation, in particular for feed and energy, presenting a major challenge.
Outlook
According to Wyss, inflation and the coronavirus situation will determine the course of the market in the second half of the year.
The company warned that procurement and price situation will remain tense for as long as the uncertain geopolitical situation persists.
Wyss added, “We expect inflation to rise further in the second half of the year, which means that it will impact the annual result.”
© 2022 European Supermarket Magazine – your source for the latest A-Brands news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
