Industry & Wholesaling
In the reporting year, M-Industry took advantage of the growth opportunities in its target markets in Switzerland and abroad, breaking the CHF 6 billion sales barrier for the first time. Sales increased by 4.4% to CHF 6.016 billion (previous year: CHF 5.763 billion). Organic growth was an encouraging 3.1%.
Industry & Wholesaling
Industry & Wholesaling
| CHF million | 2013 | 2014 | Change compared to previous year |
|---|---|---|---|
| Net sales revenue from goods and services sold | 5'763.5 | 6'015.9 | 4.4% |
| Other operating income | 45.2 | 55.9 | 23.7% |
| Eliminations | -312.7 | -331.0 | 5.9% |
| Total income | 5'496.0 | 5'740.8 | 4.5% |
| Operating profit before effect from pension plans (EBIT) | 122.3 | 137.2 | 12.2% |
| Segment assets | 2'235.9 | 2'368.3 | 5.9% |
| Investments in long-term assets | 163.5 | 181.7 | 11.1% |
| Workforce {(annual average) | 11'284 | 12'112 | 7.3% |
All customer groups contributed to the encouraging growth in the reporting year. Sales with the Migros Group increased by 3.0%. In the bulk consumer business, sales increased by 1.3% to CHF 995 million (previous year: CHF 983 million). The international business grew by a considerable 22.0% to CHF 626 million (previous year: CHF 513 million). With the takeover of SweetWorks Inc., M-Industry strengthened its market position in North America in the area of chocolate and chewing gum. In Switzerland, the range of products was complemented by the acquisition of Rudolf Schär AG in the meat specialities business and the operative business of the Schweizer Getränke AG, Obermeilen in the fruit-base business.
At the end of 2014, M-Industry employed a total of 12'169 employees, 766 more than in the previous year. Not including the acquisitions, 253 new jobs were created, 219 of which in Switzerland. There was a particular focus on developing young talent. The number of trainee positions was also increased again. M-Industry currently has 472 trainees (previous year: 450) in more than 30 professions. This represents 80 trainee positions more than three years ago.
At Micarna, the training platform Mazubi now prepares trainees for their future careers in a highly practice-oriented way by allowing them to manage their own virtual company.
Continued strengthening of market position in Switzerland and abroad
Business with the Migros Group was further expanded. M-Industry's many attractive product ranges played a considerable part in Migros increasing its retail market shares. The "Von uns. Von hier." (From us. From here.) marketing programme, which will run for several years, had a positive effect on Migros' sales growth of 1.7%. With growth of well over 10%, business with Denner, Migrolino and Le Shop was developed successfully.
Sales in the bulk consumer business outside the Migros Group increased to CHF 995 million (previous year: CHF 983 million) despite a very challenging market environment. As a result of this growth, the performance is significantly better than in the generally declining Swiss catering segment and has further strengthened the market position.
International business grew by CHF 113 million (+22.0%) to CHF 626 million (previous year: CHF 513 million). At the same time, exports increased by an encouraging 15%. The coffee capsules business developed well and was the main growth driver. The areas of cosmetics, detergents/cleaning materials and cheese also saw positive development. As part of the international growth strategy, presence in the North American market was increased with the acquisition of SweetWorks Inc.
"Von uns. Von hier." – unique due to M-Industry
The products produced by M-Industry under brands such as Frey, Aproz, Total, Ice Tea, Candida, I am and Bifidus are unique. They enable Migros to differentiate itself effectively, and some have even attained cult status. The marketing initiative "Von uns. Von hier.", launched in 2014, has made Swiss consumers more aware of this uniqueness and resulted in bigger market shares.
Investments in Switzerland as a centre of industry and in sustainable development
Aproz is able to save 71 tonnes of PET each year thanks to a new design.
M-Industry invested at least CHF 180 million in Switzerland as a centre of industry in the reporting year. In addition to the further development of production capacities, specific investments were made in systems and technologies aimed at improving resource efficiency (CO2, energy) and reducing the amount of packaging materials.
M-Industry also pushed ahead with its ambitious sustainability strategy in 2014. It intensified its partnerships with farmers that produce under the TerraSuisse guidelines, which are very important to M-Industry. Binding guideline quantities and price premiums for cereal and animals were set for a period of five years. This also safeguards the producers' immediate future.
In addition, the use of packaging material is being systematically reduced or replaced by environmentally friendly materials. Aproz, for example, was able to use ten percent less PET per bottle by redesigning its bottles and labels. This reduces the PET requirement by 71 tonnes per year. Delica, the producer of Café Royal coffee capsules, now packs its capsules in smaller, FSC-certified boxes that require 60 percent less packaging material.