Switzerland-based Bell Group has reported an increase in net profit for the first half of 2011 despite a fall in sales.
The meat processor said today (11 August) that net profit rose 2.5% to CHF26.8m (US$36.1m).
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EBITDA fell 5.4% to CHF83m, although it said that adjusting for M&A and exceptional costs in 2010, EBITDA was “on par” with the previous year.
Sales were down 2.6% to CHF1.2bn but Bell said sales rose 3.5% if the impact of the Swiss franc and M&A were removed from the results.
This year, Bell has sold its convenience food unit to sandwich-to-pizza maker Hilcona. As part of the deal, Bell acquired a 49% stake in Hilcona. In April, Bell acquired German convenience meats business Hoppe.
For the remainder of the year, the company expects sales volumes to grow “across the board” for the group although there might be “some regional differences”.
In Switzerland, Bell expects “restrained growth in the retail and foodservice sectors” with stronger pressure on prices and margins.
In Bell’s other European markets, price increases are set to take effect in the second half, which will provide a “better cushion for higher procurement costs”, it said.
It expects the annual operating result to be “on par” with the previous year.
