Successful 2014 financial year for the Bell Group

The Bell Group performed well in a challenging environment. Product ranges with higher added value recorded pleasing growth. External factors such as the weather and currency fluctuations had an impact on nominal sales. At CHF 2.6 billion, the Bell Group's sales in 2014 were 0.9 % below the previous year (-0.5 % adjusted for currency effects). The sales volume fell by 1.1 % compared to 2013 to around 215,600 tons.
The progress made in the high value-added product ranges led to an increase in the gross profit margin from 32.1 % to 33.0 %. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by around CHF 6.5 million to CHF 196 million. All divisions contributed to the improved result. Due to the improved operating result and a significant reduction in financing costs, net profit for the year rose by 14.5% to CHF 87.7 million. On this basis, the Annual General Meeting will be asked to approve a CHF 5 higher dividend of CHF 65 per share for the 2014 financial year.

Bell Switzerland

Bell Switzerland increased sales by 0.8% to CHF 1.86 billion. The seafood, poultry and charcuterie segments proved to be growth drivers in 2014. Sales volumes fell by 0.9% to 121,063 tons, partly due to lower industrial deliveries, the weather-related weak barbecue summer and the renewed increase in cross-border shopping tourism. Thanks to the significant increase in sales in the higher value-added product ranges, Bell Switzerland was once again able to achieve good growth.

Sales at Bell Germany fell by 2.8% to CHF 470 million. Adjusted for currency effects, the decline was still 1.5 %. The decline is mainly due to significantly lower raw material prices and the product mix. Despite the declining market, the sales volume of 62,570 tons was maintained at the previous year's level, thus gaining market share. The reorganization of business activities in recent years, the harmonization of processes and standardized IT systems as well as investments in improving processes and flows of goods have enabled continuous progress in the operational area.

Bell International

Since 1 January 2015, the international activities of the Bell Group in France, Benelux, Poland, Hungary and the Czech Republic have been organizationally combined under Bell International. At CHF 269 million, the division recorded an 8.1 % drop in sales. Currency effects and significantly lower raw material prices in Europe had an impact on nominal sales. In addition, the increasingly unprofitable branch business in Slovakia with around 30 sales outlets was completely discontinued as at 31.12.2014. Sales fell by 3.6% to around 32,000 tons, mainly due to the company's own adjustments of low-value-added products. Thanks to the progress made in value creation and successful cost management, the division's overall result was better than in the previous year.

Bell expects raw material prices to rise in Switzerland and Europe in the second half of 2015. Due to the discontinuation of the minimum euro exchange rate by the Swiss National Bank on January 15, 2015, Bell expects a further increase in shopping tourism in Switzerland. The discontinuation of the minimum euro exchange rate will result in a nominal reduction in equity and a nominal decline in sales due to the financial reporting in Swiss francs. However, the direct impact on the result will remain negligible.
Independent of the external factors, Bell will continue to focus on streamlining and focusing the product range on high value-added products and exploiting synergies within the Group. The optimization of the organisation and processes will also be driven forward in order to further improve the cost structure. Bell will exercise the agreed option for a further two percent of Hilcona as of May 1, 2015 and thus become the majority shareholder with 51%. From this date, Hilcona will be fully consolidated in the Bell Group, which has annual sales of around 500 million and around 1,900 employees.