SFS Group has reported solid sales growth and a substantial improvement in profitability. Group consolidated sales were CHF 1.437 billion (€1.35 billion), up 5.9% on 2015. EBITA improved to 14.4% from 12.5% the previous year. Prior to adjustment for currency, and changes in the scope of consolidation, gross sales grew 4.4% year-on-year.
Engineered Component sales were CHF 768.1 million, an increase of 3.8% year-on-year. Fastening Systems sales were CHF 355.6 million, up 8.8%. (6.9% on a like for like basis). Distribution and Logistics sales were CHF 309.3 million, up 1.1%.
SFS said Fastening Systems carried on good momentum from the first to second half of 2016, with growth abroad based in terms of both geography and application areas.
SFS Unimarket (Distribution and Logistics segment) won key projects and “battled strong head winds” from the 2015 Swiss franc appreciation.
American sales grew 22% (14.7% like for like) contributing 14% of Group sales. European sales grew 11.8%, contributing 42% (increased from 39.2%). Swiss sales grew 3.1% and contributed 22.6%, very slightly down year-on-year. Asian sales fell 14.1% and its share of Group sales slid from 25.6% to 21.1%.
The adjusted EBITA margin for the Group increased to 14.4% from 12.5% in 2015. SFS attributes the improvement to market success of innovative products,
economies of scale, higher production, capacity utilisation, and the effectiveness of measures taken in response to the appreciation of the Swiss
franc in 2015.
The reported EBITA margin will be slightly higher as a result of divestments gains on property sales of CHF 9 million.
SFS investing in Switzerland
SFS is investing around CHF 36 million through to mid-2018 to increase capacity and productivity at major sites in Switzerland.
The Group will add 4,500m2 storage capacity at its SFS Unimarket central warehouse in Rebstein and upgrade warehouse logistics infrastructure. It will also upgrade logistics infrastructure at Heerbrugg in a three stage project due to complete in Spring 2018. Investment of around CHF 6 million will be targeted at improving goods and materials flow, increasing capacity and shortening response times. The developments will include capabilities to network with customers operations in a new Industry 4.0 framework. CHF 20 million will also be invested in heat treatment operations at the same site.
Will joined Fastener + Fixing Magazine in 2007 and over the last 15 years has experienced every facet of the fastener sector - interviewing key figures within the industry and visiting leading companies and exhibitions around the globe.
Will manages the content strategy across all platforms and is the guardian for the high editorial standards that the Magazine is renowned.
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