SWITZ: Pricing offsets weak volumes to drive Bell sales
Pricing lifts Bell revenue
Swiss meat processor Bell Group has reported an increase in sales for 2013, with the top line boosted by pricing as volumes came under pressure.
Group revenue rose 3.7% to CHF2.62bn (US$2.89bn), the company said in a trading update yesterday (14 January). However, sales volumes fell 1.7% during the year.
The company saw volumes decline as it raised prices to offset the "high prices" for raw materials.
The European meat processor said volumes dropped in its largest markets - Switzerland and Germany. Nevertheless, the group saw gains at its joint Eastern Europe/Benelux division and at its business in France.
Bell is due to report its full annual results on 24 February.
Bell Group posts 3.7 % sales growth in 2013
Bell, the leading Swiss meat processing company, increased its sales revenue by 3.7 % in 2013 to CHF 2.62 billion. Sales growth was primarily price driven. Sales volumes declined by 1.7 % to 217.9 million kg. Bell Switzerland improved its sales revenue by 5.0 % to CHF 1.84 billion, while sales volumes declined by 0.2 % to 122.1 million kg. Sales growth was mainly driven by the high prices for raw materials. Independently of these developments, the poultry segment once again proved to be a growth driver.
Sales for Bell Germany declined by 1.6 % to CHF 482.8 million (-3.5 % in local currency). At 62.6 million kg, sales volumes were down by 6.1 % on the previous year, mainly under pressure of a shrinking market and the restructuring of some product ranges. The air-dried ham product group continued to do well.
At CHF 187.0 million, sales for the Eastern Europe/Benelux division were up by 2.7 % (+0.3 % in local currency) with sales volumes increasing by 2.3 % to 20.3 million kg. While Polish sales firmed encouragingly, the branch shops in the Czech Republic and Slovakia performed on a par with the previous year. The product ranges for Hungary and the Benelux countries were restructured further and more cutbacks were made in products with low added value.
Bell France is continuing to grow well. Sales increased by 8.8 % to CHF 106.0 million (+6.8 % in local currency). Sales volumes for the dried sausage and ham ranges in France continued to trend positively and improved by 1.6 % to 12.8 million kg.
The full 2013 Group results will be published on 24 February 2014.
Original source: Bell Group
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