Industry News

Bossard Group reported first quarter net sales of CHF 218.9 million, saying that in an extraordinarily challenging market environment, it had held its own. In view of the growing market turbulence caused by the Covid-19 pandemic the company said its first quarter results were better than it could have expected.

Bossard Group reported first quarter 2020 net sales of CHF 218.9 million, a decline of -5.7%. However, the drop was largely due to the stronger Swiss franc, with the fall in sales in local currencies less pronounced at -1.8%. In particular, Bossard said, business in Europe stayed the course with only a slight drop in sales in local currency, maintaining virtually the same level as last year. In Asia, where the impact of the Covid-19 pandemic was most evident in the first quarter, Bossard was seeing the first signs of market normalisation, primarily in China.

European sales were CHF 133.1 million compared with CHF 138.9 million in Q1 2019, but only down -0.2% in local currency. The acquisition of Boyson last July made a positive contribution to this outcome. Bossard says the Covid-19 pandemic has appreciably affected business in Europe in recent weeks. The Group is currently taking a number of actions to maintain operational performance and ensure liquidity, including introducing short-time work in Switzerland. Affected employees will see a maximum reduction in pay of 4%, and the board of directors, executive committee and management have committed to a similar salary reduction.

Bossard was already ‘facing considerable headwinds’ in America during the second half of 2019. Sales for first quarter 2020 were CHF 54.0 million, down -7.1% (local currency -4.3%) against same quarter 2019. However, sales increased +5.5% against the final quarter of 2019.

Asian results were described as 'respectable' with demand reduced as a direct result of the Covid-19 pandemic. First quarter 2020 sales were down -9.7% to CHF 31.8 million, again substantially affected by the strength of the Swiss franc. In local currencies sales were down -4.5%. Record sales were posted in Taiwan, with double-digit growth in India and Singapore. Bossard says individual Asian markets are showing some signs of normalisation, with suppliers and customers rebooting production.

Bossard describes the outlook as challenge, and says it is looking at a difficult second quarter, adding "a quick recovery from Covid-19 is not currently foreseeable". The drastic reductions in economic activity in Italy, France, Germany and Switzerland will "have repercussions for Bossard's business".