|CHF million||2014||2015||Change compared to previous year|
|Net sales revenue from goods and services sold||6'015.9||6'254.5||4.0%|
|Other operating income||55.9||65.9||17.9%|
|Earnings before interest and taxes (EBIT)||144.7||154.0||6.4%|
|Investments in long-term assets||181.7||195.3|
The abolishment of the minimum euro exchange rate and the subsequent strong Swiss franc increased the pressure on Switzerland as a centre of industry in the reporting year. The rise in shopping tourism and the subdued consumer sentiment on the Swiss market both had an impact on M-Industry. In 2015, it generated sales of CHF 6.255 billion (previous year: CHF 6.016 billion) and grew by 4% in a challenging market environment. Real growth was 0.8%.
With strategic acquisitions in Switzerland and abroad, M-Industry strengthened its market position and achieved solid growth. With the takeover of the Lüchinger+Schmid Group, wholesale delivery was expanded considerably. In the international cosmetics business, sales of exclusive brands were increased due to the majority acquisition of the UK-based Quantum Beauty Company (QBC). In nominal terms, M-Industry increased its sales in all customer groups.
Market shares increased within the Group
Business with the Migros Group was expanded by 2.1% to CHF 4.488 billion. Business with Denner, migrolino and Le Shop.ch developed disproportionally well. Due to the varied and attractive M-Industry product ranges, all companies within the Migros Group were able to increase their market shares.
The challenging environment in the bulk consumer business was marked by shopping tourism and a lack of overseas tourists, which had an impact on the catering business. The growth in sales of almost 10% to CHF 1'085.5 million (previous year: CHF 995.4 million) is primarily due to the consolidated Lüchinger+Schmid Group. The previous year's sales level could be maintained despite a shrinking market.
Robust export business
The international business, consisting of exports and overseas locations, grew by 8.8% to CHF 680.9 million (previous year: CHF 626.1 million). Some of the foreign locations grew considerably in the local currencies. Despite the Swiss franc increasing in value (by around 12% in comparison to the euro), the export business performed resolutely. The currency-adjusted growth in exports amounted to an encouraging 6.3%. The coffee capsules and cheese businesses were the main growth drivers. The area of cosmetics also saw positive development.
On a currency- and inflation-adjusted basis, most business units managed to grow. Currency gains due to savings made in the area of procurement were passed on to customers in the form of lower prices.
Own brands strengthened
The brands produced by M-Industry, such as Frey, Aproz, Total, Ice Tea, Candida, I am and Bifidus, are unique and some have attained cult status. They enable Migros to differentiate itself effectively. The marketing initiative “Von uns. Von hier”, launched in 2014, has made Swiss consumers more aware of this uniqueness and again resulted in larger market shares in the reporting year.
Investments in the workplace Switzerland and in sustainability
M-Industry invested around CHF 200 million in Switzerland as a centre of industry in the reporting year. In addition to the expansion of production capacities, specific investments were made in systems and technologies aimed at improving resource efficiency and reducing the amount of packaging materials. These investments effectively support the ambitious sustainability strategy of M-Industry.
In collaboration with Migros, Mifa has developed an environmentally friendly spray bottle for cleaning agents, made from 100% recyclable plastic. This innovative product won the 2015 Swiss Packaging Award in the sustainability category.
Bischofszell Nahrungsmittel AG now produces orange juice using fair-trade fruits. The fruit concentrate for the juices in the Migros' Gold and M-Classic ranges is procured directly from two cooperatives in Brazil and carries the Fairtrade Max Havelaar label.
M-Industry now supports an ETH professorship for sustainable food processing. The newly appointed assistant professorship researches the development of new procedures for making the production of food more environmentally friendly and sustainable. It covers the entire product cycle, from the molecules through to the food on the store shelves.
New jobs and trainee positions
At the end of 2015, M-Industry employed a total of 13'113 people, 944 more than in the previous year. Not including the acquisitions, 546 new jobs were created, 456 of which in Switzerland.
There was a particular focus on developing young talent. The number of trainee positions also increased again in the reporting year. M-Industry currently has 526 trainees (previous year: 472) in more than 30 different professions. This represents 100 trainee positions more than three years ago.