The Bell Food Group achieves success by focusing on its strengths

Dear shareholders,

In the challenging market environment of the 2025 financial year, the Bell Food Group held its own and continued the success of the previous years. We can look back on a good but intense year and are delighted that we have been able to improve all essential key indicators. This positive development confirms that we are on the right track with our strategic thrusts. We can once again present an encouraging result.

We love the good things

Our business model is synonymous with stability and adaptability. It allows us to react prudently and efficiently to changes in market and consumer requirements. With our wide product range, diverse brand portfolio and ongoing innovative capacity, we meet consumer requirements in all price segments. Our broadly supported sales channels in the retail, food service and food processing segments empower us to compensate effectively for fluctuations in consumer behaviour.

We shape the future

The past financial year was hugely dominated by our forward-looking focusing strategy. This strategy involves focusing on our strengths and directing our efforts to areas where we see long-term potential for growth and play the role of market leader. In the European air-dried ham market, for example. With the acquisition of the production facility of Hermann Wein GmbH & Co. KG in Freudenstadt (DE), Bell is strengthening its position in the European market for air-dried ham, thus perfectly complementing the existing activities of Bell International. This takeover underlines the fact that we take opportunities to acquire companies that rationally enhance our existing activities.

At the same time, we are working to consistently optimise and increase the efficiency of our organisation. The business area Hügli has initiated various measures. For example, by relocating the production activities in Redditch (UK) to the existing facilities in Radolfzell (DE) and Zásmuky (CZ) in the medium term, Hügli is further optimising its production structures. This measure serves to coordinate the production programmes at the locations, improve capacity utilisation and realise efficiency gains.

We have also reset the direction of the business area Eisberg. On account of a lack of prospects and upcoming investment needs, we sold the Eisberg companies in Poland, Hungary and Romania. Eisberg is now free to consistently focus on the DACH region (Germany, Austria, Switzerland) with the Eisberg Switzerland and Eisberg Austria units. The Austrian operations in Marchtrenk have not yet lived up to our expectations. We have overhauled the operating concept for the facility in Marchtrenk (AT) in order to sustainably boost profitability. Eisberg Austria will in future focus on a more efficient core assortment that is optimally geared to the market. In line with this focus, parts of the infrastructure and specific plants will no longer be needed. With these measures, Eisberg is strengthening its competitive capacity and creating the conditions for improving the locationʼs profitability.

The Bell Food Group is cementing its market position and optimising its production landscape with these measures. In the context of this development, we have recognised extraordinary depreciation of CHF 64.4 million. With these targeted investments, optimisation of the locations and intensified market activities, we will improve our competitive capacity, consistently implement our focus strategy and lay the groundwork for a sustainable improvement of operational efficiency.

Our investment programme in Switzerland remains on course. In Oensingen (CH), we commissioned the new cattle slaughterhouse as planned in the reporting year. It is among the best in the world when it comes to animal welfare, hygiene and efficiency, and sets the benchmark for others. The new logistics centre will go online progressively in 2026. It will speed up warehouse management, thus shortening the order and delivery schedule for our customers. Going forward, this will substantially reduce food waste, among other things. The new slicer centre will be finished in mid-2026, and the concentration of charcuterie slicing activities will considerably boost our efficiency in this area. The new high-bay warehouse at Hilcona in Schaan (FL) has started operations, signalling the successful completion of the second phase of the facility development plan. Hilcona's new production facility is creating space for innovation, growth and new technologies. Hubers has adopted a new facility development plan for infrastructure investment at Pfaffstätt (AT). This plan involves the new build of a second slaughtering, cutting and filleting plant and the installation of a turkey slaughtering line, whereby particular emphasis is placed on the improvement of animal welfare. The new infrastructure will give us the additional production capacity we need, strengthen our role as technological leader and provide us with a sustainable competitive advantage, thus establishing a reliable basis for future growth and stable earnings.

We take responsibility

Sustainability has long been an integral part of our corporate culture. The reporting year was dominated by constant progress and new initiatives in the field of sustainability by the Bell Food Group. By focusing clearly on reducing greenhouse gas emissions and increasing energy efficiency, all business areas have been able to implement measures that promise to bring environmental as well as economic benefits. The new facilities in Oensingen (CH) and Schaan (FL) were built according to the Minergie standard, the Swiss building standard for exceptional climate protection requirements. The optimisation of resource usage and promotion of sustainable agricultural practices also took centre stage.

Change in Group Executive Board

CFO Xavier Buro left the Bell Food Group at the end of April. The Board of Directors of the Bell Food Group appointed Sven Friedli as the new CFO and a member of the Group Executive Board from 1 September. The Bell Food Group's Finance and IT business areas were merged. Retaining the CIO function will ensure continuity in IT, which is important for the ongoing large strategic projects. Combining Finance and IT under a single manager further streamlines the organisation and opens up additional options for the Group to move forward with digitalisation in a more focused and effective manner. On 1 June, Tobias Wölfle, the former CFO of Eisberg, took over as head of the business area Eisberg from Mike Häfeli, who left the company of his own accord. Eric Overbeek replaced Thomas Bodenmann as head of the business area Hügli on 1 March.

Consistent dividend distribution

Given the good performance of the Bell Food Group and the intact outlook, we are requesting the Annual General Meeting to approve the distribution of the same dividend of CHF 7.00. This represents a distribution ratio of 35.0 percent of the Group result. Fifty percent of the distribution will be paid from the capital reserves and 50 percent from the annual profit of Bell Food Group Ltd.

Outlook

The economic framework conditions remain challenging. Economic developments in the coming year will again be dominated by restrained consumer sentiment and intense competition. The geopolitical uncertainties will prevail, as will the tight procurement market situation.

We are confident that we can further boost our growth momentum and value creation by focusing on our strengths and the strong market position of our companies. The commissioning of new production facilities at different locations will generate the expected start-up costs and depreciation. The measures to improve efficiency that were initiated, e.g. the optimisation of production programmes at various locations, lay the foundation for a successful future and will come into play in the medium term.

We are very well equipped to meet these varied challenges. Trusting in our experience, our solid structure and our clear strategic focus, we are looking forward to these challenges with confidence. We will consistently pursue the path taken and continue to develop our brands, assortments and products. Our proven business model and the diversity of our assortments and products are fundamental to our sustained success.

Dear shareholders, we would like to thank you for the ongoing trust you have placed in our company. We would also like to thank our employees, who make a daily contribution to the success of the Bell Food Group with their know-how, engagement and experience, as well as our business partners for their long-term cooperation.