Business News
2014 first half-year results – Positive net result of CHF 3.9 million with an improvement of CHF 16.9 million vs. previous year
Friday 29. August 2014 - Stable sales at CHF 560.5 million despite negative currency effects and difficult market conditions
Significant improvement in operating result (EBIT) and net result. Operating result (EBIT) at CHF 20.1 million (30 June 2013: CHF -3.8 million). Net result at CHF 3.9 million (30 June 2013: CHF -13.0 million)
Strong cash inflow from operating activities of CHF 49.3 million
Shareholders’ equity reached 35.1% compared to 33.6% at the end of 2013
Bobst Group achieved CHF 560.5 million sales for the first half-year 2014 compared to CHF 563.0 million in the previous year. Adjusted for negative currency effects, sales increased by 1.2% despite difficult market conditions. The operating profit reached CHF 20.1 million compared with a loss of CHF 3.8 million for the same period in 2013. The significant improvement in the operating result (EBIT) is due to the positive impact of the Group transformation program leading to a very high load of all plants. The net result reached CHF 3.9 million, following a loss of CHF 13.0 million for the same period in 2013.
During the first half of 2014, consolidated sales amounted to CHF 560.5 million, representing a reduction of CHF 2.5 million, or -0.4%, compared with the same period in 2013. This evolution was due to an increase of CHF 7.0 million in volume and price, along with a negative impact of CHF 9.5 million due to an unfavorable exchange rate evolution.
The operating profit reached CHF 20.1 million compared with a loss of CHF 3.8 million for the same period in 2013. The significant improvement in the operating result (EBIT) is due to the positive impact of the Group transformation program leading to a very high load of all plants.
All Business Units contributed to the improved operating result (EBIT), with Business Unit Sheet fed making the greatest contribution:
Sheet-fed: CHF -9.4 million (30 June 2013: CHF -23.9 million)
Web-fed: CHF +11.7 million (30 June 2013: CHF +7.0 million)
Services: CHF +17.8 million (30 June 2013: CHF +14.1 million)
Net profit reached CHF 3.9 million, against a loss of CHF 13.0 million in 2013. Improved results, as well as ongoing measures to optimize net working capital, resulted in a significant cash inflow from operating activities of CHF 49.3 million compared with CHF 9.7 million in the first six months of 2013. Net debt further reduced to CHF 81.8 million from CHF 109.0 million at the end of 2013. Following the placement of a five-year CHF 50 million straight bond in January, the CHF 150 million public bond which came to maturity on 5 May 2014 was reimbursed.
The consolidated shareholders’ equity reached 35.1% of the total balance sheet, compared to 33.6% at the end of 2013.
Outlook for the second half of 2014
The Group is confident of experiencing a sales volume during the second half of 2014 comparable with the second half of the previous year. Full year estimated sales are expected to be slightly lower than in the previous year. Market conditions remain volatile, and political unrest in many areas of the world is creating uncertainties having a negative impact on the willingness to invest. Nevertheless, we should continue to see good demand in Europe and North America. Asia should improve after a calm beginning of the year and South America will remain low due to a slow economy.
At current exchange rates, and barring unforeseen circumstances, we expect to improve upon the full year results achieved in 2013.
The Group continues to implement its strategy – which is to innovate, to increase its presence in growing markets, to increase the performance of its services and to improve its operational excellence – in order to achieve the communicated mid-term targets (EBIT of 7% and 9-12% ROCE).