Bell Food Group has applied structured risk management since 2009. As a food manufacturing company, the risk situation can be described as stable overall, whereby the Swiss and Liechtenstein companies of the Bell Food Group are less dependent on the economic environment than those in the rest of Europe. As part of the risk management process, the Board of Directors, Group Executive Board and Executive Boards of the country organisations assess the major risks every year.
The Bell Food Group generally defines risk as possible events or actions that could lead to a deviation from the defined objectives or strategy implementation. Positive deviations are seen as opportunities and negative deviations are deemed to be risks. Opportunities are integrated into the strategy process, while negative deviations are analysed during the risk management process. The risks are assessed for probability of occurrence and quantitative impact in the event of occurrence.
A full survey of the possible risks is done every three years. The risks that are relevant for the Bell Food Group are identified and measures are formulated if possible to reduce the probability of occurrence and/or the impact of the potential risks. Every measure is given a responsible owner. In the in-between years, the Board of Directors and Group Executive Board monitor the status of the measures and carry out current assessments. As part of the risk management process of the Bell Food Group, risks that could potentially cause a loss of more than a specified amount at EBIT level within three years are actively managed. The relevant amount of loss is CHF 5 million for the Bell Switzerland Division and CHF 1 million for the Bell Germany and Bell International Divisions as well as for Hilcona and Eisberg. Safeguards and measures are implemented to protect the company against risks that cannot be influenced or that can only be influenced to a limited extent.
In 2017, Bell Switzerland and Hilcona carried out a risk management audit. Management has identified a sudden increase in raw materials prices, shifts in agricultural policies and epidemics as major risks.
The financial market risks are limited to foreign currency exposure, in particular in the eurozone, but this does not exceed the threshold for large risks. A risk assessment was carried out for Eisberg in the reporting year for the first time. Management identified general business interruptions, e.g. caused by fire, as a potential risk.
Internal audit carried out general health checks to identify the operational risks associated with newacquisitions, and Management defined and implemented the required measures.
The Bell Food Group's sales revenue improved by CHF 327.6 million to CHF 2.1 billion in the first half of 2018. At 268.3 million kilograms, sales volume is up by 19.9 percent on the prior-year period. EBITDA improved by CHF 6 millio...