01-03-16
Member news
Bobst Group reports solid results in face of currency headwinds
• Organic sales in local currencies increased by 6.8% in 2015
• Operating profit was CHF 75.4 million compared with CHF 81.7 million in 2014
• Net result was CHF 59.2 million compared with CHF 53.0 million in 2014
• Continued strong cash inflow from operating activities of CHF 104.8 million
• Net debt close to zero
• Order entries up 6% and backlog 8% higher compared to previous year
Measures taken in the first quarter of 2015 to mitigate the impact of the Euro's depreciation against the Swiss Franc were successful, and compensated in large part for the negative currency impact on the Group results. The Group's strategy to strengthen its technological lead and to enhance customer satisfaction has made BOBST more resilient to external influences.
The Board of Directors proposes to the Annual General Meeting of Shareholders the payment of a dividend of CHF 1.25 per share (CHF 1.25 in 2014).
In million CHF 2015 2014
Sales 1 330.9 1 300.0
Operating result (EBIT) 75.4 81.7
Net result 59.2 53.0
Order entries and backlog
The Group started 2015 with a slightly higher backlog of orders than the year before. Both machine business units recorded higher order entries in 2015 than the previous year, which supported the increase in sales. The Group finished the reporting year with a higher backlog than in 2014. The Business Unit Sheet-fed will start 2016 with a good backlog, whereas the Business Unit Web-fed will start slightly below the previous year.
Sales
For the full year 2015, consolidated sales increased by CHF 31 million, or 2.4%, to CHF 1.331 billion. Adjusted for currency effects and acquisitions, organic sales were up 6.8% in 2015. The acquisition of Nuova Gidue Srl contributed CHF 27 million to the sales increase. Negative currency effects reduced sales by CHF 84 million.
In million CHF In %
Increase in volume 88 6.8
Change in scope of consolidation 27 2.0
Exchange rate variance -84 -6.4
Increase in sales 31 2.4
Sales reached CHF 806 million in the second half of 2015 compared with CHF 525 million in the first six months of the year, and to CHF 740 million in the second semester of 2014. Sales of Sheet-fed products increased by 3% to CHF 658 million. Demand for products for the corrugated board industry was very strong, supported by a satisfying demand for products for the folding carton industry. Sales of Web-fed products increased by 4.9%, reaching CHF 297 million for the year 2015, including the acquisition of Nuova Gidue Srl which contributed CHF 25 million. The demand for special machines and complex lines remained at a low level. Sales of services and spare parts reached CHF 375 million, or a decrease, due to the negative currency impact, of 0.7% compared to 2014.
Sales in Europe increased by CHF 51 million. A significant improvement in some countries, including the UK, Spain, Germany and Italy, was partly eroded by lower sales in Eastern Europe. Sales in the Americas increased by CHF 5 million. The positive momentum of growth in the US continued, but sales in Brazil decreased again. Sales in Asia suffered mainly from the general slow-down in China and decreased by CHF 17 million.
Sales 2015 2014 ?%
In million CHF
Europe 653 49.0% 602 43.6% 2.7
Americas 385 29.0% 380 29.0% -0.2
Asia & Oceania 265 19.9% 282 24.4% -1.8
Africa 28 2.1% 36 3.0% -0.7
Total 1 331 100.0% 1 300 100.0% 2.4
Results
The measures taken in the first quarter of 2015 to mitigate the impact of the Euro's depreciation against the Swiss Franc were successful, and compensated in large part for the negative currency impact on the Group results. The operating result (EBIT) was CHF 75.4 million, compared to CHF 81.7 million in 2014. This solid achievement was due to the commitment and dedication of our employees to continuously improve our competitiveness, as well as to very good utilization of the Group's industrial capacities.
The net result reached CHF 59.2 million (CHF 53.0 million in 2014). The increase comes mainly from reduced financing costs and a one-time tax credit.
Solid balance sheet
The successful business operations, as well as continued efforts to reduce net working capital, resulted in a strong cash inflow from operating activities of CHF 104.8 million. This cash has been used mainly for the repayment of the CHF 190 million in bonds which matured in June 2015. Net debt reduced from CHF 17.7 million in 2014 to CHF 0.9 million in 2015. Despite the positive net result for the year, the consolidated shareholders' equity decreased by CHF 40.9 million. The reduction of the equity was mainly due to the impact of a further reduction of interest rates related to the accounting of employee benefits (IAS 19R)*, as well as to currency translation differences largely caused by the weakening of the Euro. The equity ratio improved due to the repayment of bonds, and amounts to 28.6% in relation to the reduced total balance sheet for 2015 (27.9% in 2014).
* IAS 19R: Norm which defines how employee benefits have to be accounted
Change from IFRS accounting standards back to Swiss GAAP FER
As published on May 4, 2015, the Board of Directors decided to change from IFRS accounting standards back to Swiss GAAP FER. Swiss GAAP FER is a recognized accounting standard and ideal for an industrial group such as BOBST. As notified the change was implemented with effect from January 1, 2016 for the business year 2016. The registered shares of Bobst Group remain listed on the SIX Swiss Exchange and included in the Swiss Performance Index (SPI). In accordance with the practice of the SIX Swiss Exchange, the official change of the regulatory standard from the international reporting standard to the Swiss reporting standard will be executed by SIX Swiss Exchange on Friday July 1, 2016.
Outlook and financial targets
Bobst Group continues to strengthen its technological lead and to enhance customer satisfaction. Price pressure remains, but thanks to nine product novelties that will be presented during the Drupa and K exhibitions in June and October, we are confident of creating strong demand in the market.
The Group confirms the guidance published December 3, 2015, that it expects to reach sales of CHF 1.300 to 1.350 billion in 2016. Barring unforeseen circumstances the Group expects to achieve an operating result (EBIT) similar to that achieved in 2015. The net result might slightly decrease, as the Group benefitted from a one-time tax credit in 2015.
The mid- to long-term financial targets of at least 8% operating result (EBIT) and a minimum 15% return on capital employed (ROCE) remain unchanged. The Group confirms the commitment to create value for its stakeholders.
Board of Directors elections
At the forthcoming Annual General Meeting of Shareholders on April 6, 2016, the mandates of all members of the Board of Directors will come to an end. Alain Guttmann, Thierry de Kalbermatten, Ulf Berg, Jürgen Brandt and Gian-Luca Bona will be proposed for re-election for a new period of one year. Michael W.O. Garrett will not present himself for re-election, as he has reached the age limit for Board members.
Philip Mosimann, CEO of Bucher Industries and designated as future non-executive Chairman, will be proposed as a new member of the Board. He will enrich the Group with his experience and competencies in the industry worldwide. The Board of Directors wishes to propose Alain Guttmann as Chairman.
Bobst Group SA, Mex, Switzerland
Today's information meeting - Publication of the annual report 2015
A conference for financial analysts and the media will take place today, March 2, 2016, at 10.15 a.m. in Mex. The 2015 annual report, financial statements, along with translations in French and German of this release, will be available on the Group's website investors.bobst.com from 06.30 a.m. The presentation will be available from 10.15 a.m.
• Operating profit was CHF 75.4 million compared with CHF 81.7 million in 2014
• Net result was CHF 59.2 million compared with CHF 53.0 million in 2014
• Continued strong cash inflow from operating activities of CHF 104.8 million
• Net debt close to zero
• Order entries up 6% and backlog 8% higher compared to previous year
Bobst Group, the Swiss-based worldwide leading supplier of equipment and services to the packaging and label industries, achieved consolidated sales of CHF 1.331 billion in 2015, an increase of CHF 31 million, or +2.4%, compared to 2014. Adjusted for currency effects and acquisitions, organic sales were up 6.8% in 2015. The operating result (EBIT) was CHF 75.4 million (CHF 81.7 million in 2014), while the net result was CHF 59.2 million (CHF 53.0 million in 2014). Net debt reduced from CHF 17.7 million in 2014 to CHF 0.9 million in 2015. The return on capital employed (ROCE) reached 12.3% (12.6% in 2014) which is above the Group's cost of capital.
Measures taken in the first quarter of 2015 to mitigate the impact of the Euro's depreciation against the Swiss Franc were successful, and compensated in large part for the negative currency impact on the Group results. The Group's strategy to strengthen its technological lead and to enhance customer satisfaction has made BOBST more resilient to external influences.
The Board of Directors proposes to the Annual General Meeting of Shareholders the payment of a dividend of CHF 1.25 per share (CHF 1.25 in 2014).
In million CHF 2015 2014
Sales 1 330.9 1 300.0
Operating result (EBIT) 75.4 81.7
Net result 59.2 53.0
Order entries and backlog
The Group started 2015 with a slightly higher backlog of orders than the year before. Both machine business units recorded higher order entries in 2015 than the previous year, which supported the increase in sales. The Group finished the reporting year with a higher backlog than in 2014. The Business Unit Sheet-fed will start 2016 with a good backlog, whereas the Business Unit Web-fed will start slightly below the previous year.
Sales
For the full year 2015, consolidated sales increased by CHF 31 million, or 2.4%, to CHF 1.331 billion. Adjusted for currency effects and acquisitions, organic sales were up 6.8% in 2015. The acquisition of Nuova Gidue Srl contributed CHF 27 million to the sales increase. Negative currency effects reduced sales by CHF 84 million.
In million CHF In %
Increase in volume 88 6.8
Change in scope of consolidation 27 2.0
Exchange rate variance -84 -6.4
Increase in sales 31 2.4
Sales reached CHF 806 million in the second half of 2015 compared with CHF 525 million in the first six months of the year, and to CHF 740 million in the second semester of 2014. Sales of Sheet-fed products increased by 3% to CHF 658 million. Demand for products for the corrugated board industry was very strong, supported by a satisfying demand for products for the folding carton industry. Sales of Web-fed products increased by 4.9%, reaching CHF 297 million for the year 2015, including the acquisition of Nuova Gidue Srl which contributed CHF 25 million. The demand for special machines and complex lines remained at a low level. Sales of services and spare parts reached CHF 375 million, or a decrease, due to the negative currency impact, of 0.7% compared to 2014.
Sales in Europe increased by CHF 51 million. A significant improvement in some countries, including the UK, Spain, Germany and Italy, was partly eroded by lower sales in Eastern Europe. Sales in the Americas increased by CHF 5 million. The positive momentum of growth in the US continued, but sales in Brazil decreased again. Sales in Asia suffered mainly from the general slow-down in China and decreased by CHF 17 million.
Sales 2015 2014 ?%
In million CHF
Europe 653 49.0% 602 43.6% 2.7
Americas 385 29.0% 380 29.0% -0.2
Asia & Oceania 265 19.9% 282 24.4% -1.8
Africa 28 2.1% 36 3.0% -0.7
Total 1 331 100.0% 1 300 100.0% 2.4
Results
The measures taken in the first quarter of 2015 to mitigate the impact of the Euro's depreciation against the Swiss Franc were successful, and compensated in large part for the negative currency impact on the Group results. The operating result (EBIT) was CHF 75.4 million, compared to CHF 81.7 million in 2014. This solid achievement was due to the commitment and dedication of our employees to continuously improve our competitiveness, as well as to very good utilization of the Group's industrial capacities.
The net result reached CHF 59.2 million (CHF 53.0 million in 2014). The increase comes mainly from reduced financing costs and a one-time tax credit.
Solid balance sheet
The successful business operations, as well as continued efforts to reduce net working capital, resulted in a strong cash inflow from operating activities of CHF 104.8 million. This cash has been used mainly for the repayment of the CHF 190 million in bonds which matured in June 2015. Net debt reduced from CHF 17.7 million in 2014 to CHF 0.9 million in 2015. Despite the positive net result for the year, the consolidated shareholders' equity decreased by CHF 40.9 million. The reduction of the equity was mainly due to the impact of a further reduction of interest rates related to the accounting of employee benefits (IAS 19R)*, as well as to currency translation differences largely caused by the weakening of the Euro. The equity ratio improved due to the repayment of bonds, and amounts to 28.6% in relation to the reduced total balance sheet for 2015 (27.9% in 2014).
* IAS 19R: Norm which defines how employee benefits have to be accounted
Change from IFRS accounting standards back to Swiss GAAP FER
As published on May 4, 2015, the Board of Directors decided to change from IFRS accounting standards back to Swiss GAAP FER. Swiss GAAP FER is a recognized accounting standard and ideal for an industrial group such as BOBST. As notified the change was implemented with effect from January 1, 2016 for the business year 2016. The registered shares of Bobst Group remain listed on the SIX Swiss Exchange and included in the Swiss Performance Index (SPI). In accordance with the practice of the SIX Swiss Exchange, the official change of the regulatory standard from the international reporting standard to the Swiss reporting standard will be executed by SIX Swiss Exchange on Friday July 1, 2016.
Outlook and financial targets
Bobst Group continues to strengthen its technological lead and to enhance customer satisfaction. Price pressure remains, but thanks to nine product novelties that will be presented during the Drupa and K exhibitions in June and October, we are confident of creating strong demand in the market.
The Group confirms the guidance published December 3, 2015, that it expects to reach sales of CHF 1.300 to 1.350 billion in 2016. Barring unforeseen circumstances the Group expects to achieve an operating result (EBIT) similar to that achieved in 2015. The net result might slightly decrease, as the Group benefitted from a one-time tax credit in 2015.
The mid- to long-term financial targets of at least 8% operating result (EBIT) and a minimum 15% return on capital employed (ROCE) remain unchanged. The Group confirms the commitment to create value for its stakeholders.
Board of Directors elections
At the forthcoming Annual General Meeting of Shareholders on April 6, 2016, the mandates of all members of the Board of Directors will come to an end. Alain Guttmann, Thierry de Kalbermatten, Ulf Berg, Jürgen Brandt and Gian-Luca Bona will be proposed for re-election for a new period of one year. Michael W.O. Garrett will not present himself for re-election, as he has reached the age limit for Board members.
Philip Mosimann, CEO of Bucher Industries and designated as future non-executive Chairman, will be proposed as a new member of the Board. He will enrich the Group with his experience and competencies in the industry worldwide. The Board of Directors wishes to propose Alain Guttmann as Chairman.
Bobst Group SA, Mex, Switzerland
Today's information meeting - Publication of the annual report 2015
A conference for financial analysts and the media will take place today, March 2, 2016, at 10.15 a.m. in Mex. The 2015 annual report, financial statements, along with translations in French and German of this release, will be available on the Group's website investors.bobst.com from 06.30 a.m. The presentation will be available from 10.15 a.m.