Solid improvement in earnings despite higher raw material prices

The Bell Food Group's sales grew by 7.3 percent or CHF 118 million to CHF 1.73 billion in the first half of 2017. The sales growth is mainly due to last year's acquisitions of Hubers, Eisberg, Geiser and Cher-Mignon. The Bell Food Group's total sales volume amounted to 223ʼ770 tons and increased disproportionately compared to sales
(+16.6 %, +31ʼ842 t).

At CHF 65.4 million, EBIT was around CHF 4.4 million up on the previous year. This solid half-year result is pleasing given the significant rise in raw material prices for pork in Germany, France and Eastern Europe.
Corporate profit after minority interests amounted to CHF 39.5 million, up 9.1 percent on the previous year (CHF +3.3 million). The complete takeover of the Hilcona Group announced in the first half of the year is not yet reflected in the financial statements. The sale of the branch business in the Czech Republic and the associated deconsolidation of ZIMBO Czechia s.r.o. at the end of March 2017 have already been taken into account.

Bell Switzerland: mixed start to the year followed by a good start to the barbecue season

Bell Switzerland increased its sales of goods by CHF 29.0 million to CHF 962.7 million (+3.1 %). This growth is mainly due to the acquisitions of Geiser and Cher-Mignon in the previous year. Adjusted for acquisitions, the growth in sales of goods was 0.3 percent.
The sales volume in the first half of 2017 amounted to 63ʼ056 tons (+1.4 %, +896 t). Adjusted for acquisitions, the sales volume was slightly lower. The main reasons for this development were a slow start to the year and unsatisfactory Easter business. The good start to the barbecue season compensated for a large part of the shortfall thanks to the beautiful spring weather.

Bell Germany: increase in sales cannot compensate for raw material price increase

The Bell Germany division increased its sales volume by 4.1 percent or 1,349 tons to 33,900 tons. Sales of goods rose by CHF 2.5 million (+1.2 %) to a total of CHF 215.0 million. Thanks to the targeted increase in sales, the significant rise in raw material prices was cushioned, but not completely absorbed. The negative effects remained particularly noticeable in the sausage segment.
In order to further strengthen the raw ham segment, the foundation stone was laid in the first half of 2017 for an additional plant for Spanish ham specialties near Madrid. At the beginning of April 2017, the Bell Food Group also took over the production facilities of a Spanish specialist for Iberico charcuterie.
Bell International: growth through acquisitions and increased sales

Bell International increased its sales volume by 24ʼ172 tons or 44.4 percent to 78ʼ648 tons. This was primarily due to the acquisition of Austrian poultry specialist Hubers in 2016 and the significant increase in products sold in Poland. Sales of goods amounted to CHF 292.8 million, up CHF 69.4 million or 31.0% on the previous year. These figures include the sale of the

branch business in the Czech Republic at the end of March 2017 is already included in these figures.

In all the relevant sausage and charcuterie markets of the Bell International division, the sharp rise in raw material prices made the situation more difficult. In France, the reorganization measures decided upon continue to be implemented consistently. Hubers is performing very well and was able to further expand its market position in Austria and southern Germany. The extension to the turkey production plant in Bavaria is nearing completion and can be put into operation in the third quarter of 2017. This will continue the growth strategy in the area of turkey production.Hilcona: Convenience market continues to develop positively

The complete takeover of the Hilcona Group was announced at the end of May 2017. The new ownership structure enables a simplified management organization and thus creates the conditions for further growth in the convenience market. The 2017 half-year results will not be affected by the takeover, as the relevant competition authorities must first approve the transaction.
Thanks to the acquisition of Eisberg in the previous year and Frostag Food-Centrum AG at the beginning of 2017, sales in the Convenience division increased by CHF 26.5 million or 9.6% to CHF 302.0 million. The two business units Hilcona and Eisberg are thus developing in line with the high expectations.
The Bell Food Group will invest EUR 30 million in a new production facility for convenience products near Linz in Austria. The ground-breaking ceremony is scheduled for September 2017 and the plant is expected to go into operation in autumn 2018. The Bell Food Group intends to use the new production facility to tap into the large sales and market potential in Austria.

Outlook
The Bell Food Group does not expect a significant decline in raw material prices for pork in Europe in the second half of the year either. The cost-cutting measures will be consistently pursued and the sales strategy will be maintained.
Another focus for the second half of 2017 will be on the approval of the complete takeover and integration of the Hilcona Group. The Bell Food Group expects the convenience market in Europe to continue to grow. The strategy in this area will therefore be pursued further.
The concretization of the new construction and conversion project for the Swiss sites in Basel and Oensingen will continue. Bell Switzerland Ltd will implement the investment project in a future-oriented manner in order to be able to operate successfully on the market in the long term.