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Cham Paper Group: Pleasing business performance in the first half of 2017 Donnerstag, 17. August 2017 - 07:01
Cham Paper Group Holding AG / Key word(s): Half Year Results
Pleasing business performance in the first half of 2017
17-Aug-2017 / 06:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
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Pleasing business performance in the first half of 2017
Cham, 17 August 2017
There has been an encouraging trend in both divisions over the first six
months of the 2017 financial year. The paper division is benefiting from the
excellent reputation that its products enjoy on the market, with
distribution focusing increasingly on the sale of high-margin speciality
papers. Efficiency gains at the company's mills are also increasing
profitability. The real estate division achieved higher rental income and is
developing according to plan, with a focus on the planning process for the
first stage of construction. Slightly lower revenue of CHF 99.2 million
(previous year: CHF 103.8 million) resulted in an operating profit of CHF
9.9 million (previous year: CHF 5.2 million). Net income came to CHF 7.1
million (previous year: CHF 3.3. million).
Further progress in the paper division
The paper division enjoyed high demand in every market segment in the first
half of the year and thus benefited from the outstanding quality of Cham
Paper Group's products and services. This allowed the Group to focus on
selling high-margin speciality papers. For instance, sales of digital
imaging papers outperformed the market, rising by 15% (revenue share 15%).
Sales of speciality papers for industrial applications (industrial release
segment) also increased by 3% (revenue share 38%). The revenue share of the
consumer goods segment was reduced slightly to 47%. Overall the paper
division generated revenue of EUR 91.6 million (previous year: EUR 94.0
million). Production volumes were just below the previous year's levels due
to the switchover to TRANSJET products (digital imaging) on the company's
own base paper. In terms of tonnage, volumes dropped to lower basis weights
as a result of the market trend.
At the same time, after the major efforts of the past few years, efficiency
gains are proving increasingly profitable in production, while gross margins
have risen considerably. The partial hedging of pulp costs largely
compensated for the sharp rise in pulp prices and this effect should be
partially offset in the second half of the year too now that sales prices
have increased. A slight dip in operational costs resulted in an operating
profit of EUR 9.4 million for the paper division, a figure which has doubled
year on year (previous year: EUR 4.8 million) and corresponds to a pleasing
EBIT margin of 10.3%.
Scheduled development in the real estate division
Preparations are under way for two commissioned studies for the first two
substages of the site's development. Once complete, this stage will see
around 80 owner-occupied flats, 130 rental flats and 30 affordable homes
built. These are expected to go on sale from 2020/2021 together with some
9,000 m2 of service and commercial space. Around CHF 180 million is being
invested in the first stage, while the long-term financing has been secured
on favourable terms. The rental income generated by existing buildings rose
by 28% to TCHF 1.089 million. The lessee Specialized moved into the
renovated workshop building on 1 October 2016, which had a particularly
positive effect on rental income. The division was also able to make greater
interim use of free space. The operating profit for the first half of the
year amounted to TCHF 484 (previous year: TCHF 29).
The Tour de Suisse got under way in glorious weather, attracting thousands
of cycle racing fans to the Papieri-Areal from 9 to 11 June. The new website
www.papieri-cham.ch was launched to coincide with the event and will provide
information about further developments on the site in future. The Zug
cantonal council ruling on approving the development plan as well as the
partial change to the building regulations and zoning plan is due to be
announced after the summer holidays.
Further increase in shareholder's equity ratio
Cham Paper Group further bolstered its balance sheet in the reporting
period. Free cash flow of CHF 6.0 million was generated. The shareholders'
equity ratio stood at 59.2% at the end of the first half of the year (end of
2016: 55.4%), while net cash amounted to CHF 5.4 million. The site in Cham
will continue to be valued at acquisition cost for the time being.
Functional change on the Executive Management Board
Luis Mata, who has played a significant role in restructuring the company
over the past five years and has managed the Italian mill for the past two
years as COO, is to take over the role of CFO of the entire Group with
effect from 1 September 2017 and will thus support both divisions in their
next phase of growth. Delegate of the Board and CEO of the paper division
Susanne Oste shall assume direct responsibility for mills, sales and
innovation.
Outlook
The Board of Directors and Executive Management Board are optimistic that
the financial year will continue to develop well. They anticipate that the
paper division will see continued positive market demand and further
efficiency gains in production in the second half of the year, although
higher pulp costs will curb margin development. The commissioned studies for
the first two substages are scheduled to begin in the real estate division.
Conference call, presentation and full half-year report
A conference call is taking place at 9.00 a.m. today, 17 August 2017, with
Delegate of the Board Susanne Oste, Group CFO Luis Mata and Head of the Real
Estate Division Andreas Friederich, to discuss the half-year results.
The dial-in number is +41 44 580 72 69 and the confirmation code is 2450097.
A brief presentation is available at
http://ir.champaper.com/cgi-bin/show.ssp?id=500&companyName=champaper&language=German
The complete half-year report (in German) can be downloaded from the
Investor Relations section of our website (see 'Financial Reports') or via
the following link:
http://ir.champaper.ch/cgi-bin/show.ssp?id=311&companyName=champaper&language=German
Key figures
In CHF thousands, unless otherwise specified
1 January to 30 June 2017 2016
Sales in tonnes 76,748 76,263
Net turnover 99,244 103,834
EBITDA 14,262 9,608
as a % of net turnover 14.4% 9.3%
EBIT 9,948 5,230
as a % of net turnover 10.0% 5.0%
Group profit 7,059 3,321
Earnings per share (in CHF) 9.48 4.46
Net cash flow from operating activities 7,231 4,084
Investments in tangible and intangible 1,393 4,889
assets
30/06/201- 31/12/201-
7 6
Shareholders' equity 113,033 108,118
as a % of total assets 59.2% 55.4%
(Net debt) / Net cash 5,437 3,248
Number of employees (FTE) 386 375
For information, please contact
Media and IR office Cham Paper Group Holding AG
Edwin van der Geest
E-Mail: media@cham-group.com oder investor@cham-group.com
Phone: +41 43 268 32 32 / +41 79 330 55 22
Valor / ISIN / Ticker: registered shares Cham Paper Group Holding AG 193 185
/ CH0001931853 / CPGN
Cham Paper Group
The Cham Paper Group is a leading manufacturer of coated speciality papers.
Surface finishing lends papers properties that generate added value for its
customers. The company, which was founded in 1657, has three sites, one in
Switzerland (Cham) and two in Italy (Carmignano and Condino), and a global
sales network.
The decision to focus on development and sales and discontinue paper
manufacturing in Switzerland has made way for a new project on the factory
site in the centre of Cham. The Cham Paper Group is developing an
eleven-hectare quarter there called the Papieri-Areal.
The Cham Paper Group (stock exchange symbol: CPGN) is listed on
Switzerland's SIX Swiss Exchange.
Disclaimer
This communication may contain statements about the future that use words
such as, for example, "believe", "assume", "expect" and other similar
expressions. Such statements about the future are subject to known risks,
uncertainties, and other factors, which can cause the true results of the
company to differ significantly from those which are expressly or implicitly
assumed in these statements. In view of these uncertainties, the reader
should not depend on this type of statement about the future. The company
gives no undertaking whatever to update such statements regarding the
future, or to adapt them to future events or developments.
This press release is issued in English and German. The German version is
binding.
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End of ad hoc announcement
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