The Bell Food Group is ready for the future

Dear Shareholders,

The Bell Food Group posted encouraging organic growth in the 2024 financial year. All business areas gained market share in their specific markets. The improvement of sales volume and net revenue throughout the Group in predominantly saturated markets is a remarkable feat. The organic growth is confirmation for us that we are moving in the right direction with our strategic thrusts. We are overjoyed to be able to once again present a good result to you.

Bell Switzerland, Bell International and Hubers/Sütag continued their rapid growth. All three business areas gained market share and ended the year on a very high level.

«We would like to mention that the convenience areas were able to continue their positive momentum and further increased their contribution to growth.»

The market environment remains challenging. Some markets are stagnating, and growth can only be generated through gains in market share. This requires the systematic implementation of the business strategy, a strong operating performance and efficient cost management. Price increases for raw materials and energy have stabilised at a high level, and personnel costs keep on rising. The digital transformation demands investments in new technologies, the modernisation of the IT infrastructure and additional IT specialists. It also involves inflation-driven salary increases and measures to improve employer attractiveness and combat the shortage of skilled labour. After all, we can only live up to our motto «Leading in Food» with the support of qualified and motivated employees going forward.

We love the good things

Our unique business model enables us to react quickly and flexibly to changes in market conditions and shopping behaviour. With our broad range of products, our strong and diversified brand portfolio and our innovative power, we can meet all current and future consumer requirements in all price segments. Our diversified retail, food service and food processing sales channels also enable us to react flexibly to consumption volatility.

We shape the future

Our forward-looking investment programme is continuing apace. The modernisation of our infrastructure is a far-reaching project, the advantages of which will continue to benefit many generations to come. In Oensingen (CH) the new facilities will progressively come online in 2025.

«The new cattle slaughterhouse will be among the best in the world when it comes to animal welfare, hygiene and efficiency.»

The new logistics centre will speed up warehouse management, thus shortening the order and delivery schedule for our customers. This will substantially reduce food waste going forward. The concentration of the charcuterie slicing activities at the new slicing centre will considerably improve our efficiency in this area. The new high bay warehouse in Schaan (LI) will also be commissioned in 2025, thus completing phase 2 of a comprehensive facility development plan and elevating logistics to a new level at Hilcona. The technological prowess of the new infrastructure offers a clear-cut competitive advantage. It secures our core business in Switzerland and thus our future growth and earning power.

We take responsibility

Our ambitious sustainability strategy is a central pillar of our corporate culture and was consistently applied in the reporting year. The Bell Food Group is committed to the reduction of greenhouse gas emissions and joined the Science Based Targets initiative (SBTi) together with its majority shareholder Coop Group Cooperative. Our SBTi targets were officially validated and published in the reporting year. The main target is to be climate-neutral by 2050.

Change in management and organisational changes

Marco Tschanz took over as CEO of the Bell Food Group from Lorenz Wyss on 1 June 2024. With this appointment, the Board of Directors backed someone with a proven track record at the company while also ensuring continuity and laying the foundation for dynamic development. The structure of the business area Bell International and the composition of the Group Executive Board were changed at the same time. The international poultry business (Hubers/Sütag division) was split off from the business area Bell International and is now managed as an independent business area. The other divisions remain part of Bell International, and were split into country units. The new CEO Marco Tschanz also serves as the head of the Bell Switzerland and Hubers/Sütag business areas. The Eisberg and Bell International business areas previously managed by him are now being headed by Mike Häfeli (new, from 1 January 2024) and Martin Schygulla (previously Head of Bell Germany, from 1 June 2024).

Consistent dividend distribution

We are requesting the Annual General Meeting to approve the distribution of the same dividend of CHF 7.00. This represents a distribution ratio of 35.4 percent of the Group result. Fifty percent of the distribution will be paid from the capital reserves and 50 percent from the annual profit of Bell Food Group Ltd.

Outlook

The general economic situation and consumer sentiment will cause a further shift in demand towards entry-level product ranges in the coming year. All of Europe is expecting inflation to continue decelerating. The geopolitical uncertainties and the tense situation on the procurement market are set to continue. The commissioning of new facilities at different locations will also generate additional start-up costs and depreciation. We are very well equipped to meet these varied challenges.

«We will consistently pursue our strategy and continue to develop our brands, product ranges and products.» 

We are convinced that our unique business model, our clear strategy and our wide range of products will enable us to generate sustainably good results going forward.

Dear shareholders, we would like to thank you for the trust you have placed in our company. We would also like to extend a special thank you to our employees, who dedicate their wealth of know-how, expertise and experience to the success of our company every day. And we would like to thank our business partners for the successful and respectful cooperation.