Industry & Wholesaling
In 2010 the Migros Industry Group took a further important step towards a highly competitive Swiss industrial group with international orientation. Both organic growth and acquisitions abroad contributed to a sales increase of 2.5% to CHF 5'316 billion.
Despite the challenging economic environment with increased price pressure, cost cutting and productivity enhancement programmes contributed to an above-average increase of 6.8% in the previous year's EBIT to CHF 232.9 million. As of the end of 2010, M-Industrie employed 474 people more than in the previous year (total: 10'523).
| in CHF million | 2010 | 2009 | Change in % |
| Net revenue from goods and services sold | 5'315.8 | 5'186.0 | 2.5 |
| Other operating income | 40.7 | 37.8 | 7.7 |
| Eliminations | –227.7 | –202.0 | 12.7 |
| Total income | 5'128.8 | 5'021.8 | 2.1 |
| Earnings before financial income, income tax and pension plan effect (EBIT) | 232.9 | 218.1 | 6.8 |
| Segment assets | 1'985.3 | 2'009.3 | |
| Investments in long-term assets | 135.3 | 150.7 | |
| Employees | 10'523 | 10'049 |
Expansion of market position abroad in particular
Migros Industry Group took a further important step towards a highly competitive Swiss industrial group with an international orientation in the year under review. Despite strongly falling domestic prices and difficult currency circumstances, net sales rose by 2.5% from CHF 5.186 billion to CHF 5.316 billion. More than half the growth is organic.
As part of the business within the Migros Group, M-Industrie passed on the cost savings from productivity increases and more favourable purchasing prices resulting from currency conditions in the form of lower prices. Thanks to the volume expansion, slight growth of 0.7% was nevertheless achieved. Business with Swiss third-party consumers rose more than 7%. With value-added concepts and a distribution expansion, business with gastronomy and industrial large-scale consumers, in particular, was developed further.
With the acquisition of Hallam Beauty in England and the integration of Gastina in Austria, Migros-Industrie strengthened its business abroad in the promising sectors of cosmetics and convenience food. In the US and Canada, new marketing companies started operations. Despite significant negative currency impacts, this allowed growth of 13.5% to be posted. This included pleasing organic export growth of some 5%.
Innovations are driving business
Thanks to its innovative capacity, Migros-Industrie further managed to expand business with brand owners. Examples are the market launch of the Shakeria milk shake and PhytoCellTec, an award-winning stem cell active agent for the Zoé-Effect premium cosmetics range.
Investments in Swiss business areas
M-Industrie again invested some CHF 135 million in Switzerland in 2010, thereby further improving international competitiveness. At Micarna in Courtepin, poultry production was expanded and processes optimised. In Ursy at Mifroma, the sandstone cellar for maturing Gruyère was expanded hugely. At Jowa, an investment was made in a new deep-freeze bread line, and in Estavayer at Elsa a further stage was implemented on the route towards one of the most modern dairies in Europe.
Sustainability in practice
M-Industrie invested a significant amount of money in sustainability projects in 2010. In addition to the major efforts in the area of energy saving and CO2 reduction, attention was focused on procurement. M-Industrie focuses on partners that contribute to a sustainable development from a comprehensive, global perspective. M-Industrie is procuring an increasing amount of UTZ-certified cocoa and coffee beans. The Bio and Terra Suisse label programmes are also being promoted consistently.
Outlook
Price and margin pressures will continue to remain high in the Swiss market. Exports are set to face a challenging financial year due to the currency situation. Thanks to smart value-added concepts, convincing quality, Swiss reliability, a good price/performance promise and the targeted strengthening of its marketing power, M-Industrie will, however, expand its market position domestically and abroad. To achieve the targets set, Migros-Industrie pursues a consistent growth and fitness strategy.