Industry & Wholesaling
In 2016, M-Industry grew by CHF 134 million to CHF 6.389 billion (+2.1%). With an increase of CHF 109 million (+16.0%), the international business was encouraging. In the Swiss market, M-Industry grew by CHF 25 million (+0.5%).
Financial results Industry & Wholesaling
| CHF million | 2016 | 2015 | Change compared to previous year |
|---|---|---|---|
| Net revenue from goods and services sold | 6'389 | 6'255 | 2.1% |
| Other operating income | 73 | 66 | 10.6% |
| Eliminations | -544 | -441 | 23.2% |
| Total income | 5'918 | 5'879 | 0.7% |
| Earnings before interest and taxes (EBIT) | 154 | 154 | -0.1% |
| Segment assets | 2'352 | 2'388 | |
| Investments in long-term assets | 206 | 195 | |
| Employees | 13'113 | 12'921 |
Sales from the international business (exports and overseas locations) increased by 16.0% to CHF 790 million (previous year: CHF 681 million). Despite the persistently strong franc, export sales were up 9.4% thanks to solid concepts. The coffee capsule and cheese businesses were the main growth drivers. Under the Café Royal brand, market share increased in France and Germany in particular.
The Mibelle Group's product range has been expanded with the takeover of Ondal in France.
The growth of the overseas locations was driven mainly by the acquisitions of Ondal France S.a.r.l. and Idhéa SAS. The Mibelle Group's product range was expanded with the takeover of Ondal in France, laying the foundations for further growth. Thanks to the acquisition of Idhéa, sauce production can now be bundled into one location and the business in Switzerland and abroad developed further.
Strategic acquisitions in the Swiss business
As expected, the Swiss business (retailing and bulk consumer business) proved challenging. Nevertheless, sales were still slightly above the previous year's level. The market position was strengthened with strategic acquisitions in the areas of meat specialities (Gabriel Fleury SA) and fresh Asian specialities (Sushi Mania SA). The long-established Gabriel Fleury SA is the second largest dried meat producer in the canton of Valais, while Sushi Mania SA specialises in Japanese and Asian cuisine.
Business with the Migros Group was expanded by 0.9%.
Business with the Migros Group was expanded by 0.9% to CHF 4.530 billion. While the Migros business (retailing) stagnated on an inflation-adjusted basis, business with Denner and LeShop.ch increased. M-Industry actively supported the differentiation strategy of Migros retailing.
The market environment in the bulk consumer business was very challenging. It was dominated by declining inbound tourism (hotels and gastronomy), as well as shopping tourism and a shrinking cash & carry market. Sales fell by 1.5% to CHF 1.069 billion (previous year: CHF 1.086 billion).
More trainee positions and employees
As a leading training provider, M-Industry again increased the number of trainee positions in the reporting year. Currently, 538 trainees (previous year: 526) are trained in more than 30 different professions.
At the end of 2016, M-Industry employed 13'113 people (previous year: 12'921), representing an increase of 192. 1'012 employees work abroad.
Investments in sustainability
M-Industry invested around CHF 230 million in Switzerland as a centre of industry in the reporting year. In addition to capacity expansion and rationalisation investments, there was a strong focus on investment to sustainably boost resource efficiency.
The construction of two wood-fired power plants in Gränichen and Estavayer-le-Lac has made it possible to cut CO2 emissions by approx. 15'200 t per year. These investments help to implement the ambitious sustainability strategy of M-Industry in an effective way.