Bell Ltd Company Profile 2013 Quality Is Our Core Competence We Stand for Sustainable Services
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Bell Ltd Company profile 2013 Quality is our core competence We stand for sustainable services Our tradition makes us rich in experience Our products offer taste and a zest for life Bell – taste and a zest for life Contents The Bell Group is one of the leading meat processors in Company profile 2013 Europe and is number one in Switzerland. Our products – fresh meat, charcuterie, poultry, special meats, seafood 3 and convenience products – are synonymous with taste Bell at a glance and a zest for life. 6,500 employees do their utmost every – Important events 2013 day to prepare top-quality products and satisfy the taste – Important key figures buds of millions of consumers. To achieve this goal we cooperate closely with our suppliers and distribution part- 6 ners in the retail and wholesale trade, the food service Editorial sector and the food processing industry. 16 Business overview – Our business – Locations and organisation – Products and product ranges 8 15 – Our suppliers – Our employees Moments of enjoyment Our products guarantee a real treat, around the clock. The Bell employees in all our plants are dedicated to 20 providing this experience. Strategy – Our strategy – reaching the top, together – Our corporate guiding principles – What we build on – competition-relevant business strategies Contents Management report 2013 24 – Contents – Financial report Status report – Corporate governance – Development of the Bell Group – Figures – Divisions – Contacts/imprint – Assessment of risks, market environment and outlook Together, the 2013 management report and the 2013 company profile form the 2013 annual report. These are available as separate 28 publications or can be downloaded from www.bellfoodgroup.com. Corporate Responsibility 32 Contacts/imprint 2 Bell at a glance Important events in 2013 Market environment in Seasonal business Switzerland and in Europe Rising prices for raw materials and Bad weather for the barbecue range restrained consumer sentiment have a in the first half of the year and below- negative impact on sales and margins. average festive season business. Expansion of production plant Organisational restructuring in Churwalden completed at Bell Schweiz AG Start of delivery of charcuterie Functional structure that is closer to specialities from Graubunden. the market and enhances efficiency. International organisation Unlocking of potential Finalisation and implementation First exploitation of synergies and of the divisional structure of the potential within the Group. Bell Group. Anuga food and beverage fair Board and management changes First international appearance of the Andreas Land is now a member of the Bell Group with its new structure – Board of Directors; Christian Schröder optimum presentation of the interna- is now a member of the Group tional product ranges under one roof. Executive Board; new management team at Bell France. Brand management Sustainability Successful relaunch of the strategic Adoption of a new Group-wide “Môssieur Polette” brand in France. sustainability strategy. Corporate strategy Adoption of vision, corporate guiding principles and missions for the entire Bell Group. 3 Important key figures Sales proceeds Operating income The separate manage- in CHF thousand in CHF thousand ment report describes the financial perfor- mance of the Bell 2 ,620,490 2 ,597,788 Group in detail. Previous year Previous year 2 ,526,520 2 ,508,378 + 3.7 % + 3.6 % Number of employees Equity FTE in CHF thousand 6 ,384 731 ,458 Previous year Previous year 6 ,248 675 ,472 in % of assets 50 .8 % + 2.2 % Sales by product group Net capital expenditure in tonnes in operating assets in CHF thousand Product group 85 ,527 Fresh Meat 55,530 Previous year 73 ,676 Poultry 28,864 Seafood 5,655 + 16.1 % Charcuterie CH 31,945 Charcuterie Europa 95,805 4 Share price as of 31.12. 2013 in CHF 2012 EBITDA per share in CHF 476 + 2.4 % 2 ,316 465 Previous year EBIT per share in CHF 263 + 5.8 % 249 2 ,005 + 15.5 % Net profit per share in CHF 192 + 0.7 % 191 Dividend per share in CHF 60 + 0.0 % 60 EBITDA EBIT Net profit in CHF thousand in CHF thousand in CHF thousand 189 ,658 10 4ʼ943 76 ,625 Previous year Previous year Previous year 185 ,138 99 ,145 75 ,849 + 2.4 % + 5.9 % + 1.0 % Number of production plants Nationalities Gender distribution; share of women in % 27 73 40 Previous year 72 27 production locations (=) The Bell Group has an international profile: Share of women 116 sales locations (+ 16) it is present in 11 countries, sells its products in management 26 % in around 25 countries, and employs people (previous year 19 %). from 73 countries. 5 > Hansueli Loosli President of the Board of Directors >> Lorenz Wyss Chairman of the Group Executive Board Editorial Focus as a success factor in a challenging environment Dear Shareholders For 2013, we planned to consistently exploit the synergies within the Group, enhance our efficiency even more, and streamline our brand management, all in order to further strengthen our position in spite of per- sistently difficult market conditions. Today, we can say that we made further progress along this road and achieved a satisfactory result. 6 Stable operating result Sales volumes contracted year-on-year by 217,950 tonnes or 1.7 percent. A downturn in the seasonal business, some markets that are shrinking and the restructuring of our own product ranges were the main contributors to this decline. Because of higher prices for raw materials, sales were up by 3.7 percent on 2012 to CHF 2.62 billion. Earnings before interest, taxes and depreciation (EBITDA) improved by around CHF 4.5 million to CHF 190 million. Adjusted for exceptionals (around CHF 9 million in the previous year), EBITDA was almost CHF 3 million lower than in the previous year. This was mainly due to the increase in the cost of raw materials by as much as 30 percent in some cases and negative volume trends in certain charcuterie segments. The poultry and air-dried ham product groups on the other hand did very well. At CHF 76.6 million, the consolidated profit increased by 1.0 percent. However, at 2.9 percent, the return on sales is still good for our industry. Further progress on the road to an international brand We consistently worked on strengthening our company under the umbrella brand of the Bell Group, both in our European markets and in Switzerland. Locally, we focus on our five strategic product brands: Bell, Abraham, Hoppe, ZIMBO and Môssieur Polette. All of them represent our values: tradition, quality, taste and sustainabil- ity, and serve as the foundation for our vision of reaching the top, together. We have also adopted revised corporate guiding principles that set out the rules guiding our conduct on our way to the top. In addition to the concentration on our brand management, we pushed ahead with projects to enhance our organisational efficiency. In Switzerland, both Procurement and Supply Chain Management as well as Sales and Marketing were separated from the individual divisions so that we can increase our focus on our customers and We focus on responsi- the market and unlock further potential for synergies. In Germany, we finalised the concentration of all central ble products and services at our headquarters in Seevetal, and at Bell Eastern Europe/Benelux, we restructured our product procurement, resource ranges to focus consistently on products with higher added value. efficiency and climate New strategic direction confirmed Shortly before the end of the year, the Board of Directors for the first time adopted a general sustainability protection, and pledge strategy for the whole Group as a keystone for our future business development. In the past few years, sus- to be a good employer tainability has become a much discussed topic in the media, among consumers and in political circles. The and neighbour. public at large is demanding answers from the business sector to questions such as how we intend to master challenges related to the conservation of resources or animal welfare. Bell’s sustainability strategy is our an- swer to these questions. We focus on responsible products and procurement, resource efficiency and climate protection, and pledge to be a good employer and neighbour. In this way, we not only ensure our social ac- ceptance, but also create added value for future growth. Solid finances and performance Financially speaking, the Bell Group is on a solid footing. Our equity ratio of 50.8 percent gives us stability and the flexibility we need for the company’s future development. In the current challenging environment, we still managed to generate a cash flow (cash flow before changes to net current assets) of CHF 150 million and earn a profit of CHF 77 million. Given this success, we will ask the Annual General Meeting to approve the same dividend as in the previous year of CHF 60 for the 2013 financial year. The Bell share continued its success of the past few years and firmed by 15.5 percent over the course of the year. The share’s performance over the past few years is therefore in line with the performance of the equity markets. Investors also appreciate the solidity of our company, our reliable dividend policy and the substance of the Group. Outlook As there are no signs that the difficult environment will improve quickly, we will continue to rely on strengthen- ing our product ranges, exploiting synergies in the international business and reaping the benefits of our measures to enhance efficiency. We expect the implementation of our sustainability strategy to generate added value that should also have a positive impact on the market and our earnings position in the medium term. We can only successfully reach the top together with the support of our employees, suppliers, trading partners and shareholders.