Publiziert in: Marktpuls, Unternehmen
Frei
Conzzeta: Surge in revenue and improved profitability - strengthened position in growth markets Dienstag, 20. März 2018 - 06:45
Conzzeta / Key word(s): Final Results/Half Year Results
Conzzeta: Surge in revenue and improved profitability - strengthened
position in growth markets
20-March-2018 / 06:45 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Annual results 2017
Surge in revenue and improved profitability - strengthened position in
growth markets
* Net revenue +22.5% (comparable1 +14.3%) to CHF 1,482.8 million
* EBIT +46.0% to CHF 123.2 million, EBIT margin 8.2%
* Adjusted EBIT2 +35.6%, adjusted EBIT margin 7.6%
* Adjusted return on net operating assets (RONOA) 19.5%
* Group result +52.4% to CHF 97.4 million
* Proposed dividend for class A shares CHF 16.00, +45.5%
Group 2017 20163
Net revenue in CHF m 1,482.8 1,210.0
Total revenue in CHF m 1,500.9 1,210.8
Operating result (EBIT) in CHF m 123.2 84.4
as % of total revenue 8.2 7.0
Group result in CHF m 97.4 63.9
as % of total revenue 6.5 5.3
Minorities in CHF m 13.7 3.7
Operating free cash flow4 in CHF m 65.4 76.0
Cash, cash equivalents and securities in CHF m 399.1 519.8
Total assets in CHF m 1,323.2 1,255.4
Shareholders' equity in CHF m 902.9 941.5
as % of total assets 68.2 75.0
Net operating assets in CHF m 490.7 401.6
Employees at year-end 4,717 4,098
Earnings per share
Class A registered shares CHF 40.47 29.10
Class B registered shares CHF 8.09 5.82
1 At constant exchange rates and adjusted for changes in the scope of
consolidation.
2 Excluding CHF 8.8 million capital gain from the sale of the 51% stake in
the US joint venture in the FoamPartner business unit on July 1, 2017.
3 From 2017 onwards, Other operating income is shown separately and is no
longer recorded under Net revenue and Total revenue. The figures for 2016
have been adjusted accordingly.
4 Free cash flow excluding changes in securities and deposits with a term of
more than 90 days, and net of acquisitions and divestments of business
activities.
Zurich, March 20, 2018 - The Conzzeta Group achieved revenue growth of 22.5%
to
CHF 1,482.8 million in 2017. The operating result (EBIT) increased by 46.0%
to CHF 123.2 million. This includes a one-time gain of CHF 8.8 million from
the sale of the 51% stake in the US joint venture in the FoamPartner
business unit on July 1, 2017. Adjusted for this special effect, the return
on net operating assets (RONOA) was 19.5% compared with 15.6% in the
previous year.
The robust sales development seen in the second half of 2016 and the first
half of 2017 was exceeded once again in the second half of 2017 in a
favorable business environment for capital goods. Progress was made in the
implementation of strategic and operational initiatives. In 2017, the Group
realized revenue growth of 44.1% in Asia, or 23.7% on a comparable basis.
While net revenue in Europe also recorded a double-digit increase, business
in the Americas developed underproportionally. The takeover of Otto Bock
Kunststoff as of September 1, 2017 within the FoamPartner business unit
marked an important development step for Conzzeta. A milestone had already
been achieved in the previous year with the acquisition of a 51% stake in
the Chinese DNE Laser in the Bystronic business unit.
According to Michael Willome, Conzzeta Group CEO: "We are very pleased with
the annual results for 2017, and we are also making good progress in
implementing our priorities. In Asia, in particular, we managed to nearly
double revenue over the past 24 months and thus to significantly expand the
share of total Group revenue from under 20% to 27%. Consequently, Conzzeta
now has much stronger footprint in the world's most important growth region,
and we will continue to drive internationalization forward. Despite improved
profitability, we need to continue our efforts in order to achieve our
target mid-term EBIT margin range of 8% to 10% without special effects."
The Group generated free operating cash flow of CHF 65.4 million in 2017,
against CHF 76.0 million in the previous year. Investments in property,
plant and equipment and intangible assets, primarily in the modernization of
production facilities in the Bystronic and FoamPartner business units,
amounted to CHF 37.3 million compared with CHF 24.7 million in 2016.
Earnings per share were CHF 40.47 for each class A registered share and CHF
8.09 for each class B registered share, after CHF 29.10 and CHF 5.82,
respectively, in the previous year. At the Annual General Meeting on April
24, 2018, the Board of Directors will propose a dividend of CHF 16.00 for
each class A registered share and a dividend of CHF 3.20 for each class B
registered share, a 45.5% increase on the previous year.
Trends and outlook: Cash, cash equivalents and securities stood at CHF 399.1
million at the end of 2017, and the equity ratio was 68.2%. Thus, even after
the acquisitions and investments made over the course of 2017, Conzzeta has
a solid balance sheet that will help to sustainably develop its business and
actively shape its portfolio over the mid-term. The focus for acquisitions
remains on the Sheet Metal Processing and Chemical Specialties segments. In
the Bystronic business unit, larger infrastructure investments are planned
over the next two years in North America and at the the Swiss production
site. In 2018, the FoamPartner business unit will focus on working with Otto
Bock Kunststoff to launch the expanded range of products and services on the
market. Thanks to the larger presence in Asia and the US, opportunities
arise for additional growth and efficiency gains. The Mammut Sports Group
business unit during the 2017 transitional year progressed according to
schedule with the implementation of its five-year strategic plan commenced
in 2016. Further improvements in revenue and earnings contributions are
expected in 2018, although this unit will fall short of the Group's mid-term
targets. The benchmark is the Group's ambition to achieve revenue growth of
more than 5%, an EBIT margin of 8% to 10%, and a return on net operating
assets of more than 15%.
The robust economic development and the generally favorable investment
climate have continued into the first quarter of 2018. In this environment
and following the very dynamic revenue expansion of 2017, Conzzeta
anticipates high single-digit revenue growth, a higher operating result and
a further improved EBIT margin in 2018.
Segments 2017 20161
Sheet Metal Processing Net revenue in CHF m 856.1 650.9
Total revenue in CHF m 874.0 646.9
Operating result in CHF m 98.0 63.0
as % of total revenue % 11.2 9.7
Sporting Goods Net revenue in CHF m 228.6 232.9
Total revenue in CHF m 228.6 231.4
Operating result in CHF m 0.1 1.2
as % of total revenue % 0.1 0.5
Chemical Specialties Net revenue in CHF m 279.2 219.7
Total revenue in CHF m 281.3 220.8
Operating result in CHF m 24.8 23.1
as % of total revenue % 8.8 10.5
Glass Processing Net revenue in CHF m 119.3 106.9
Total revenue in CHF m 117.4 112.1
Operating result in CHF m 6.3 1.0
as % of total revenue % 5.4 0.9
1 From 2017 onwards, Other operating income is shown separately and is no
longer recorded under Net revenue and Total revenue; the figures for 2016
have been adjusted accordingly.
The Sheet Metal Processing segment (Bystronic) generated net revenue of CHF
856.1 million in 2017, a year-on-year rise of 31.5% (previous year: CHF
650.9 million). On a comparable basis, revenue increased by 23.7%. The
operating result amounted to CHF 98.0 million (CHF 63.0 million) with an
EBIT margin of 11.2% (9.7%). All regions recorded solid double-digit growth
rates. Although competition and pricing pressure remained fierce, both the
entry-level products and the newly introduced higher performance machinery
and automation solutions met with strong demand. Bystronic continues its
high rate of innovation. In June 2017, over 1,000 customers from all over
the world attended the "Competence Days" held at the Niederönz site, where
various products innovations were presented, such as a laser cutting system
for large-format sheet metal, expanded functions for cutting tubes, and
additional mobile and automated sheet metal bending capabilities. Various
software solutions were also introduced, including an integrated digital
solution for managing production from order intake through to the finished
product. Bystronic continued to generate more than half its sales with
products introduced less than three years ago.
The Sporting Goods segment (Mammut Sports Group) generated net revenue of
CHF 228.6 million in 2017, down 1.9% from the previous year (CHF 232.9
million). At stable exchange rates, revenue declined by 1.7%. The operating
result amounted to CHF 0.1 million (CHF 1.2million) with an EBIT margin of
0.1% (0.5%). In the reporting year, low-margin revenues and liquidation
sales in the amount of CHF 9.5 million were eliminated, and the share of
revenue from sales channels with higher margins increased. Additional costs
were partially offset by an improvement in sales quality as part of the
five-year strategic plan launched in 2016, as well as continued spending
discipline. In keeping with the strategic plan, these additional costs were
incurred in order to strengthen critical capabilities, particularly in the
areas of digitalization, retail and design, and in the recruitment in the
international markets. For this purpose, over 30 additional full-time
positions were created in 2017. Product innovations such as the next
generation of the "Eiger Extreme" flagship apparel collection and the newest
version of the Barryvox avalanche transceiver were well received.
The Chemical Specialties segment (FoamPartner and Schmid Rhyner) generated
net revenue of
CHF 279.2 million in 2017, a year-on-year rise of 27.1% (previous year: CHF
219.7 million). On a comparable basis, growth was 4.9%. The figures factor
in the changes in the scope of consolidation affecting the FoamPartner
business unit, namely the inclusion of Otto Bock Kunststoff, which was
acquired as of September 1, 2017, and the removal of the 51% stake in the US
joint venture, which was sold effective July 1, 2017. The operating result
amounted to CHF 24.8 million (CHF 23.1 million) with an EBIT margin of 8.8%
(10.5%). It includes a one-time gain of CHF 8.8 million from the sale of the
joint venture. As expected, the operating EBIT margin reported in the
previous year could not be maintained due to a significant increase in the
cost of raw materials. Only some of the increased costs could be passed on
to the market by way of price increases, and only subject to a time lag. Net
revenue was higher in all product segments and in the regions of Europe and
Asia, while revenue was lower in the Americas, partially due to the
aforementioned sale in the FoamPartner business unit.
The Glass Processing segment (Bystronic glass) generated net revenue of CHF
119.3 million in 2017, a year-on-year rise of 11.6% (previous year: CHF
106.9 million). At stable exchange rates, revenue increased by 11.8%. The
operating result amounted to CHF 6.3 million (CHF 1.0 million) with an EBIT
margin of 5.4% (0.9%). In a generally favorable market environment, business
picked up in both the architectural and automotive glass markets in the
second half of the year, with results notably exceeding the results reported
in the first half of the year. Thanks to larger orders, revenue in both the
automotive glass market and in Europe and Asia posted double-digit growth
rates on an annual basis, but it was not possible to maintain revenue in the
Americas. The cost-reduction measures implemented in the first half of the
year, particularly at the Neuhausen location in Germany, as well as the
initiated process optimization had a positive impact on earnings.
Organizational structures have been further strengthened, particularly in
China, in order to broaden growth opportunities geographically.
The Annual Report 2017 and the results presentation will be available at
www.conzzeta.com.
Inquiries: Michael Stäheli, Head Investor Relations & Corporate
Communications; +41 44 468 24 49, media@conzzeta.com.
About Conzzeta
Conzzeta is a broadly diversified Swiss group of companies. It stands for
innovation, reliability and a long-term perspective. Conzzeta strives for
leading positions in its target markets, above-average growth and long-term
value creation. More than 4,700 employees at over 60 locations worldwide are
dedicated to offering customers innovative solutions in Sheet Metal
Processing, Sporting Goods, Foam Materials, Graphic Coatings and Glass
Processing.
Conzzeta AG is listed on the SIX Swiss Exchange (SIX:CON).
---------------------------------------------------------------------------
End of ad hoc announcement
---------------------------------------------------------------------------
