Bell Food Group Sees 5.9% Sales Increase In 2017
Bell Food Group has posted sales of CHF 3.6 billion in 2017, representing value growth of 5.9% compared to the previous year.
The Swiss food company, which is one of the leading meat processors and makers of convenience products in Europe, saw sales volume rise by 9.6%, while net profit grew by 5.9% to CHF 106.5 million.
The group says that this growth was supported by operational progress in Switzerland, Germany and Poland, as well as new acquisitions over the past few years.
However, rising raw material prices and competitive markets also had a negative effect on these results.
Bell says that its key strategic focus is currently investment in the convenience sector, and in 2017 the company completed a full takeover of Hilcona, Eisberg and Frostag Food-Centrum.
Last month, the group also announced its acquisition of Dr A. Stoffel Holding AG, the majority shareholder of the international food manufacturing company Hügli.
This deal has now been approved, and the transaction is expected to be completed by 21 February. At the same time, Bell is making a public offer to buy all outstanding shares of Hügli Holding AG at CHF 915 per share.
Looking ahead, Bell Food Group says that it expects a relaxation in the raw material prices seen in the second half of 2017 to continue into this year, which should have a positive impact on the company's margins.
The group added that competition will continue to be strong in the European retail markets, but that it is consistently pursuing its strategy of continued growth in the 'attractive' convenience segment.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.