Valora plans further international expansion
The Swiss Valora Group reported a successful first half of 2017 and intends to continue focusing on small-format convenience and food service concepts in high-frequency locations.
Valora reported net revenues of CHF 1,005.1 million for the first half of 2017, compared to CHF 1,037.8 million a year earlier. The slight decline was due to the deconsolidation of Naville Distribution, whose revenues were still included in the prior-year figures. Excluding this divested business, sales were stable (+0.2% adjusted for currency effects). As a result, gross profit amounts to 416.4 million compared to 429.1 million in the first half of 2016.
Compensation through sale of real estate in Geneva
Excluding the sold business segment, there was a currency-adjusted increase of 1.9 percent or 7.7 million in absolute terms, the company writes. This growth was driven by the retail business (DE/LU) and Food Service. Valora's operating profit (EBIT) rose by 4.3 million to 34.7 million in the first half of 2017. The increase was largely the result of efficiency improvements in the Retail segment (CH/AT).
The EBIT of the divested Naville Distribution from the previous year will be offset in the first half of 2017 by the book profit from the sale of the La Praille property in Geneva, the statement continues. With the acquisition of Pretzel Baron in the USA at the end of January 2017, the foundation has also been laid for further international growth and expansion of the market position as one of the leading producers of pretzel bakery products.
As CEO Michael Mueller explained, Valora is "well placed to continue investing in our business model and our communicated growth strategy in Switzerland and internationally". Accordingly, the company confirmed the targets communicated for fiscal 2017, with an operating profit of CHF 79 million (+/-3 million CHF).
60 new stores in Germany
Meanwhile, a major expansion of the branch network is planned with German subsidiary Valora Holding Germany (currently around 1,000 outlets). Managing director Peter Obeldobel told the "Hamburger Abendblatt" that the number of Avec branches or U-Stores (a 50-% holding with Hamburger Hochbahn) is to be increased by 60 nationwide by 2020. In addition, in the cooperation with Deutsche Bahn AG, the "ServiceStores" developed are to be expanded by 25 locations over the next three years (currently 114), Obeldobel said.
