EQS-Adhoc: Conzzeta: Surge in revenue and improved profitability - strengthened position in growth markets
EQS Group-Ad-hoc: 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.
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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 millionEBIT +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 millionProposed 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
1At constant exchange rates and adjusted for changes in the scope of
consolidation.
2Excluding 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.
3From 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.
4Free 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
1From 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
atwww.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).
Additional features:
Document:http://n.eqs.com/c/fncls.ssp?u=FJLSPAUVEV
Document title: Annual results 2017
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End of ad hoc announcement------------------------------------------------------
Language: English
Company: Conzzeta
Giesshübelstrasse 45
8045 Zürich
Switzerland
Phone: +41 44 468 24 49
Fax: +41 44 468 24 53
E-mail: info@conzzeta.com
Internet: www.conzzeta.com
ISIN: CH0244017502
Valor: A117LR
Listed: Regulated Unofficial Market in Berlin, Frankfurt, Stuttgart; SIX Swiss
Exchange
End of Announcement EQS Group News Service
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665717 20-March-2018 CET/CEST
EQS Group-Ad-hoc: Conzzeta / Key word(s): Change of Personnel Conzzeta: Michael Riedel named new CEO of FoamPartner 31-Oct-2017 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 KR The issuer is solely responsible for the content of this announcement. 623825 31-Oct-2017 CET/CEST ...
