Bossard H1 sales up 2.1%
15 September 2016
Bossard Group has reported 2016 first half sales at CHF 343.6 million (€315.4 million), up 2.1% on the same period in 2015.
The semi annual report opens: “In an intractably challenging market environment, the Bossard Group continued to grow during the first half of 2016 and
bolstered profitability.”
“Positive growth dynamics were especially evident in the second quarter,” Bossard continued. “During which sales grew by 3.3% compared to a modest 0.9%
in the first quarter.”
Group sales growth was mainly driven by Bossard’s European business, in which revenues rose 4.4% to CHF 207.7 million – a 2.3% increase in local currency.
Momentum was stronger in the second quarter, during which sales increased 6.3% (+3.4% in local currency). This was largely due to stronger demand in
Bossard’s key markets of Germany, France and Denmark, although business in Switzerland also experienced an upswing.
In contrast American sales fell in the first half of 2016, down 0.9% to CHF 86.4 million (a 4.5% fall in local currency). Bossard says “a major customer
in the agricultural technology sector is facing a doggedly challenging market” but the Group did benefit from healthy growth in its business in the
electric vehicle sector.
In Asia, demand was uneven. Sluggish demand in China was reflected in a slight fall in sales in the first half of 2016. However, additional revenues from
other countries – Bossard reports “encouraging signs” from India, Taiwan and Singapore – more than compensated so that the Group’s net business in
Asia grew by 1.6% in local currency. Currency exchange, however, meant a 1.4% fall in sales when converted to a Swiss franc total of CHF 49.5 million.
Across the Group operating profit (EBIT) rose disproportionately to sales, increasing by 4.3% to CHF 39.4 million for the first six months. The operating
margin was boosted to 11.5%, compared with 11.2% in 2015, although this was affected by the depreciation of the Swiss franc. Net income for H1 2016
rose by 5.6% to CHF 31.3 million (2015 H1: CHF 29.6 million).
Chairman of the board, Dr Thomas Schmuckli, and CEO David Dean, concluded with cautious optimism for the second half of the year, from which they expect
positive overall business. That optimism is grounded in the second quarter growth trend in Europe where Bossard generates around 60% of its sales.
The outlook for the leading US electric vehicle manufacturer supplied by Bossard also gives reason for optimism. Their main caveat was: “This overall
outlook assumes that macroeconomic conditions remain relatively stable.”
Looking longer term Bossard has a growing commitment to the aerospace industry, particularly in the USA and France where it sees a healthy outlook. The
Group also believes its Smart Factory Logistics methodology will play a significant role in providing leaner processes, faster throughput times, lower
inventory and improved responsiveness as industrial companies adopt Industry 4.0 principles towards a new generation of ‘Smart Factories’.
