Bell Food Group (BELL) H1 2024 earnings summary

Executive summary

• Achieved 5.1% organic growth in net sales for H1 2024, with all divisions increasing sales and gaining market share despite a shift toward lower-priced products.

• Net revenue reached CHF 2,316 million, sales volume 285.6 million kg (+5.2%), and all business areas contributed positively.

• Strong operating performance and efficient cost management offset higher overheads and personnel costs from growth and inflation.

• Product innovation and targeted range management strengthened competitiveness, with notable gains in poultry, vegetarian, and convenience segments.

• CEO transition from Lorenz Wyss to Marco Tschanz effective June 2024; organizational adjustments made to segment structure.

Financial highlights

• Net revenue: CHF 2,316 million (+5.1% year-over-year); organic growth contributed CHF 113 million.

• EBITDA increased by 2.4% to CHF 152 million, margin at 6.6% of net revenue.

• EBIT stable at CHF 64 million (margin 2.8%); net profit CHF 45 million, down 2.6% due to higher interest costs and lower currency gains.

• Gross profit margin improved to 39.8% from 38.9% year-over-year.

• Operating investments reached CHF 141 million; net financial liabilities at CHF 900 million.

Outlook and guidance

• Well positioned for H2 2024, with agility to respond to changing market conditions and a confident outlook.

• Inflation, consumer sentiment, and competition expected to remain key factors; start-up costs and higher depreciation anticipated from new plant commissioning.

• Management expects continued volatility in individual markets due to political and economic factors.