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2011 FINANCIAL RESULTS
Strong sales and
fi nancial performance
Bel once again grew its sales and further improved its fi nancial position in 2011. At the same time,
complex economic and geopolitical conditions in certain countries and soaring raw material prices
worldwide reduced earnings, compared with previous years.
I
n 2011, Bel’s sales volumes reached
a record level, marking another year
of growth. Consolidated sales
exceeded €2.5 billion, up 4.5%
overall and up 7% at constant
exchange rates and scope of
consolidation versus 2010. Despite diffi cult
conditions, the growth was driven by the
appeal of the Group’s iconic brands, its
effective sales and marketing strategies
and a successful innovation policy.
Record volume in 2011
By geographical region, sales in the Near
and Middle East fell 9.2%, as a result of
higher raw material prices and aggressive
local and regional competition. In Eastern
Europe, the sales downtrend tied to the
region’s economic recession was halted
with respect to sales at constant scope
of consolidation. At the same time, the
Group’s home market of Western Europe,
and the powerful growth markets of the
Americas, Asia-Pacifi c and Greater Africa
regions all reported remarkable
performances.
6 • Bel Group 2011
Negative impact from spike
in raw material prices
Starting at the end of 2010, rising raw
material prices signifi cantly impacted
the Group’s earnings. To avoid penalizing
consumers during troubled economic
times, Bel continued its drive to improve
productivity (in manufacturing, organization,
purchasing, and other areas), and did not
pass on the full increase of its production
costs to selling prices. As a result, in 2011,
the Group’s operating income came to
€170 million, down 12.5% versus 2010.
Balance sheet strengthened
In 2011, consolidated net profi t,
Group share, fell 17.4% on the back of a
31% increase in fi nancial expense, mainly
as a result of refi nancing operations,
and foreign exchange losses on emerging
country currencies. Conversely, the Group
confi rmed its ability to effectively manage
working capital requirement and capital
expenditure, continuing to deleverage
during the year.
33
countries with a
Group presence
27
production sites
Over 120
countries in which
Bel products are
distributed