Bell earns slightly less in the first half of the year
Published: Tuesday, Aug 13th 2024, 06:50
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Bell achieved slightly higher sales in the first half of 2024, but earned slightly less on balance. The meat processor and convenience specialist is confident about the rest of the year.
According to the press release issued on Tuesday, sales were up 4.0% on the previous year at CHF 2.32 billion, with organic growth of 5.1%. Operating profit at EBIT level remained virtually unchanged at 63.8 million (previous year: 63.6 million), resulting in a slightly lower margin of 2.8% (previous year: 2.9%) compared to the previous year.
On balance, the Coop subsidiary's net profit fell by 2.8 percent to 45.3 million francs. Adjusted for the lower foreign currency result in the financial result, the result was "stable at the previous year's level", according to the report. The sales figures were slightly above the AWP consensus, while the profit figures were slightly below it.
However, the new CEO Marco Tschanz, who has been in office since June, expressed his satisfaction in the press release: "Thanks to the consistent implementation of our business strategy, strong operating performance and efficient cost management, we were able to gain market share."
All business divisions contributed to sales growth despite the trend towards lower-priced products, the report continues. Bell Switzerland, by far the largest division, increased its sales and achieved a "strong performance" despite a barbecue season that has so far been sluggish due to the weather.
Investment program underway
According to Bell, the investment program for Switzerland is also "on track and progressing according to plan". At the Oensingen site, the shell construction phases for the Slicer Center, Logistics Center and cattle slaughterhouse have been completed and the interior work is in full swing. The next stage in the construction of the high-bay warehouse at Hilcona in Schaan, Liechtenstein, has also begun with the start of assembly of the steel shelving.
After the first half of the year, Bell is also "confident" for the rest of the year. However, the development of the individual markets will remain volatile due to political and economic influences, according to the statement. The development of cost inflation, cautious consumer sentiment and intense competition in the market will continue to have a significant impact on the course of business in all business areas.
In addition, the commissioning of the new plants at various locations will lead to the expected start-up costs and depreciation. However, Bell is "strategically well positioned and, with a broad product mix in all price ranges, is ideally equipped for the challenges ahead".
©Keystone/SDA
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