Zurich, August 12, 2016. – In the first half of 2016, the Conzzeta Group generated a Group result of CHF 20.9 million, almost stable compared with the previous year (CHF 21.2 million). On a healthy order intake, net revenue reached CHF 524.6 million (previous year CHF 543.7 million), with an operating result of CHF 26.2 million (CHF 36.5 million) and EBIT margin of 4.8% (6.5%).
Net revenue was 3.5% lower than in the first half of 2015. The revenue contribution of CHF 9.4 million from the spun-off Real Estate segment (Plazza) was offset by currency and acquisition effects. Higher sales in Asia partly compensated for the slowdown in business activities in other regions, particularly Europe. On a comparable basis (taking into account currency translation effects and changes in the scope of consolidation), the operating result was CHF 6.6 million below the previous year, which is attributable to lower revenues and set-up costs in connection with growth plans. The Group result reflects the improvement in the financial result year on year and the lower tax expense.
Michael Willome, Group CEO: "Business performance is in line with our cautious assessment of the macroeconomic situation and the prospects for the 2016 business year, which we began with an under-average order book. In this challenging environment it is all the more pleasing that we were able to generate a very solid order intake for our capital goods, which will have a positive influence on the second-half result."
The acquisition of DNE Laser by Bystronic represented a significant strategic step forward in Asia. At Mammut we began implementing the five-year growth program. At FoamPartner, we undertook in the first half of the year a systematic prioritization of the activities, while at Schmid Rhyner we pushed forward with the commercialization of the newly developed products for the packaging printing sector. Finally, we concluded the comprehensive review of the Glass Processing business unit (Bystronic glass).
The Sheet Metal Processing segment (Bystronic) generated net revenue of CHF 256.8 million (previous year CHF 265.7 million). The operating result was CHF 17.7 million (CHF 26.8 million) with an EBIT margin of 6.5% (9.5%) and an increased headcount. With a below-average order book at the end of 2015 and a moderate market environment at the beginning of the year, it was not possible to repeat the strong result achieved the previous year in the American and various European markets, while sales in Asia increased. Order intake improved significantly on a broad basis across the regions, resulting in a solid order book at mid-year.
The acquisition of a 51% equity holding in DNE Laser, Shenzhen, China – announced on March 30, 2016, and concluded on July 14, 2016 – strengthens the laser-cutting product segment, which is now able to offer customers a complete spectrum of products from one source, ranging from single machines up to integrated solutions and flexible modular production systems. DNE Laser, which will be consolidated for the first time in the second half of 2016, is to operate as a part of Bystronic under its own brand and with its own separate sales and service organization.
The Sporting Goods segment (Mammut) generated net revenue of CHF 101.4 million (previous year
CHF 99.3 million). The operating result came in at CHF -4.5 million (CHF -5.9 million), with an EBIT margin of -4.5% (-6.0%). As in 2015, the result in the first half of the year, which tends to be weaker owing to seasonal factors, was adversely affected by warm weather with low snowfall as well as the challenging competitive environment in the proportionally significant German-speaking countries of Europe. By contrast, sales increased in the strategic target markets that were defined as part of the five-year strategy program.
Mammut began implementing this program in the reporting period. One of the measures adopted was to reconfigure the retail business, concentrating responsibility at management level. In another development, as part of a mutually agreed succession plan, Oliver Pabst was named as the new CEO of Mammut Sports Group, starting September 1, 2016. In the context of the growth strategy, Mammut will concentrate on improving the attractiveness and availability of its product offering. It started up its own online shop in the reporting period and made preparations for the opening of further monobrand stores by the end of the year. At the same time the segment invested in enhancing the cooperation with its key retail customers.
The Chemical Specialties segment (FoamPartner and Schmid Rhyner) generated net revenue of
CHF 111.0 million (previous year CHF 103.4 million). The operating result was CHF 12.5 million (CHF 8.9 million), giving an EBIT margin of 11.3% (8.6%). While net revenue grew in Asia and America, particularly in technical foams, acoustic solutions and packaging finishing varnishes, business in Europe was flat on the whole. The continuing decline in commercial printing was largely offset by Schmid Rhyner’s innovative “Soft Touch” and “Low Migration” products. The higher net revenues and lower costs bolstered the EBIT margin.
With a view to realizing growth opportunities and reducing external dependencies, we are developing solutions at FoamPartner to make its business model more market-oriented and robust.
The Glass Processing segment (Bystronic glass) generated net revenue of CHF 55.2 million (previous year CHF 64.8 million). The operating result was CHF 2.1 million (CHF 5.0 million), giving an EBIT margin of 3.6% (8.3%). In the business with automotive glass, which is subject to marked fluctuations, it was not possible to match the very strong result posted for the same period a year ago, while in the architectural glass business both sales and order intake grew, resulting in a solid order book by mid-year.
The increasing demands placed on energy efficiency and noise insulation are a positive underlying factor, boosting global market demand for glass production equipment. The ongoing complementation of the service offering and the strengthening of the sales processes show results, but our comprehensive review revealed potential for further optimization. To secure sustainable value creation, measures have been prepared to increase the flexibility of the cost base, and implementation will start in the second half of the year. By adopting these measures we create the conditions for long-term success in the market for energy-efficient architectural and automotive glass.
Trends and outlook
In today’s demanding markets, Conzzeta faces the challenge of securing growth and sustainable profitability. In all business units we implement optimization measures while contributing innovative new solutions. Conzzeta is pursuing its growth objectives systematically and with an eye on the Group’s profitability.
In the current macroeconomic environment with continued uncertainties, Conzzeta expects moderate organic growth for 2016 and profitability at EBIT level comparable with 2015. In addition, the results for the 2016 business year will include the first-time consolidation of DNE Laser and any restructuring costs in connection with the above-mentioned optimization measures.
In line with Group strategy, all business units should achieve growth and contribute to the Group’s goals across all market cycles. Conzzeta is striving to attain leading positions in all the markets it serves and to strengthen its worldwide presence with a view to achieving good growth prospects and sustainable value creation.
The key figures for the Group and the Segments are provided in the following tables. The Half-Year Report 2016 and the results presentation are available under www.conzzeta.com.
Zurich, November 10, 2020 – Conzzeta reports the signing of a binding agreement to divest its FoamPartner business unit to Recticel, the Belgium specialist in polyurethane chemistry, headquartered in Brussels and listed on Euronext (REC), for an enterprise value of CHF 270 million. The closing of the transaction is expected in the first quarter 2021, subject to regulatory approval.keyboard_arrow_right
Zurich, November 10, 2020 – Ernst Baertschi, Chairman of the Board of Directors of Conzzeta, will host today’s virtual Conzzeta capital markets day. Conzzeta Group CEO Michael Willome will provide an update of the Group’s strategic transformation. Bystronic CEO Alex Waser with part of his management team will present Bystronic’s strategy.keyboard_arrow_right
Seon, November 5, 2020 – Mammut has entered into a partnership with the non-profit organization ClimbAID to work together on humanitarian projects allowing refugees to discover the joy of climbing. United by their shared passion for mountain sports and climbing, Mammut and the Swiss non-profit organization ClimbAID are embarking on a partnership designed to allow people affected by war, poverty and displacement to discover the joy of climbing. This long-term cooperation will focus on the implementation of humanitarian projects in Switzerland, Lebanon, Greece and beyond.