Switzerland, Basel. The Bell Food Group is focusing on its strong position in the raw ham segment and will continue to expand this position. To this end, it is divesting its sausage products business in Germany and selling it to the Zur Mühlen Gruppe.
The market for meat and sausage products in Germany is declining in the retail sector. Due to an oversupply on the market, it is difficult to pass on the sharp rise in pig prices to sales prices to the extent required. In the sausage products business, Bell Food Group has a subordinate market position with a market share of less than 1% and correspondingly weak prospects.
The discontinuation of the sausage products business in Germany will have a positive impact on Bell Food Group's cash flow and EBIT of around CHF 10 mill. per year from 2020. In addition, the dependence on fluctuations in raw material prices will decrease. For the 2019 financial year, the sale will result in non-cash one-off costs of around CHF 35 mill.