Conzzeta AG: Annual Results 2015 - Solid performance in demanding environment
(Thomson Reuters ONE) -
Conzzeta AG /
Conzzeta AG: Annual Results 2015 - Solid performance in demanding environment
. Processed and transmitted by NASDAQ OMX Corporate Solutions.
The issuer is solely responsible for the content of this announcement.
Zurich, March 22, 2016. - The Conzzeta Group returned an operating result (EBIT)
of CHF 80.8 million for 2015 in a challenging operating environment. The EBIT
margin was 7.1%. Net revenue on a comparable basis amounted to CHF 1140.8
million, 1.7% up on the previous year. Overall, the result was in line with
expectations since marked exchange rate fluctuations had required measures to
cushion adverse sales and profitability effects already in early 2015. During
the year, further steps were taken as planned to continue the transformation of
the Conzzeta Group and to lay important foundations for future growth.
The Conzzeta Group generated net revenue of CHF 1140.8 million in 2015 (previous
year CHF 1195.7 million). The decline in net revenue is mainly attributable to
adverse currency effects amounting to CHF 53.5 million. On a comparable basis,
i.e. at constant exchange rates and adjusted for changes in the scope of
consolidation (in particular disposal ixmation in 2014 and spin-off of the Real
Estate segment in 2015), net revenue grew by 1.7% in 2015. In regional terms,
net revenue grew in the Americas, buoyed by an improving economy in the USA and
the stronger US dollar. In Switzerland and the Europe region, the weakening of
the euro against the Swiss franc was most apparent, while in Asian markets the
economic uncertainties had an adverse impact on sales performance in the second
half of the year.
The operating result in 2015 amounted to CHF 80.8 million (CHF 104.3 million)
and the EBIT margin was 7.1% (8.7%). The previous year included released
provisions for inherited environmental liabilities amounting to CHF 10.5
million. After taking account of this effect for the purpose of comparison, the
adjusted operating result for 2014 was CHF 93.8 million and the EBIT margin
7.8%. On a comparable basis, the 2015 operating result was 11.7% lower than the
previous year after adjustment. The lower result reflects first and foremost
margin pressure from the unfavorable currency trends in context with the
discontinuation of the minimum euro rate by the Swiss National Bank. Related
one-time adverse valuation effects of CHF 9.1 million and restructuring costs of
CHF 4.1 million were largely offset by one-time short-term cost-saving measures.
Finally, higher costs arising from the targeted expansion of the business
activities were also recorded in fiscal 2015.
The Group result for 2015 came in at CHF 59.3 million, 3.4% lower than the
previous year (CHF 61.4 million). The previous year's figure included the
disposal loss of CHF 26.3 million from the divestment of the Automation Systems
business unit (ixmation), which was recognized as an extraordinary result. The
financial result in 2015 was CHF 7.4 million down on the previous year, mainly
because of lower income and currency losses. Tax expense in 2015 was CHF 5.9
million lower year on year, primarily due to a lower ordinary result and
positive effects from the change in tax loss carryforwards.
Group profit for 2015 was CHF 28.65 per registered share A, compared with CHF
31.00 the previous year (adjusted for the share split on June 22, 2015, and the
capital reduction in conjunction with the spin-off of the Real Estate business
unit). In keeping with a consistent dividend policy, the Board of Directors is
proposing to the Annual General Meeting on April 26, 2016, a dividend of CHF 10
per registered share A and CHF 2 per registered share B.
Continuation of strategy process
The spin-off of the Real Estate business unit in the summer of 2015 continued
the transformation of the Conzzeta Group as planned. This also completed the
reorganization of ownership and control, which saw the free float of category A
registered shares listed on the Swiss Exchange increase to 80%. The currency
turmoil and subsequent measures to cushion its adverse effects demanded a
greater focus on operational development in the business units during the 2015
business year. Nevertheless, the Board of Directors continued with the strategy
process started in 2014 and formalized the Group strategy:
* Conzzeta is developing a business portfolio in markets with potential for
above average growth and sustainable value creation by securing leading
positions in its target markets.
* Innovative solutions for our clients, regional expansion and operational
excellence combine to provide long-term returns in the top quartile of the
respective peer groups. Conzzeta supports its individual business units in
creating their unique value proposition and helps management realize
ambitious targets.
* Conzzeta aims to ensure its business units are "best choice" for customers.
All business units contribute to meeting the Group targets, balancing the
Group portfolio in terms both of diversified business cycles and
geographical footprint.
* The Group seeks value creation above cost of capital with a solid balance
sheet and professional risk management. It envisages a pay-out ratio of
between one third and half of the annual profit, in consideration of the
economic situation and Conzzeta's outlook.
The Board of Directors engages in a continuous and systematic evaluation of the
long-term prospects of the business units, applying the criteria of innovation
potential, growth prospects and value creation. Conzzeta strives for accelerated
growth in its markets and will continue to develop its business portfolio in a
disciplined way, with a particular emphasis on long-term value generation. The
business units fulfill the strategic criteria in different ways. The
comprehensive review of the Glass Processing business unit (Bystronic glass),
announced in March 2015, is continuing, even though the business unit returned
to profit in the 2015 business year. In the Sporting Goods segment (Mammut
Sports Group), the challenging business environment in 2015 highlighted the
importance of the sales region Switzerland, Germany and Austria. Mammut is
developing new models of cooperation with important wholesale customers aimed at
increasing store traffic in the coming years. It also plans to push ahead with
further internationalization of the business (see segment report below). The
Sheet Metal Processing business unit (Bystronic) continued to fine-tune the
basis for automation and intelligent networking of machinery and systems in
production lines. Scalable sheet metal processing systems and the progressive
informatization of manufacturing (industry 4.0) are opening up new possibilities
for Bystronic to offer customers all-round support to optimize their production
processes.
Segments
The Sheet Metal Processing segment generated net revenue of CHF 570.9 million in
2015 (previous year CHF 580.7 million). On a comparable basis, net revenue
growth was 3.8%. The operating result was CHF 55.4 million (CHF 54.3 million),
giving an EBIT margin of 9.6% (9.3%). Bystronic achieved modest improvements in
market share during 2015 thanks to its innovative range of services. At the same
time, profitability improved slightly as a result of effective cost management
and the proportionally high level of procurement in the euro zone. A further
contributing factor was the development of business in the USA, which saw strong
volume growth and positive currency effects. Despite marked volume growth in
Europe, it was impossible to maintain the level of net revenue owing to adverse
currency effects, while demand in Asia, above all in China, slowed.
The Sporting Goods segment generated net revenue of CHF 235.3 million in 2015
(previous year CHF 249.9 million). On a comparable basis, net revenue dropped by
1.7%. Lower sales in Europe were partly offset by solid growth in North America
and China. The operating result was CHF 0.1 million (CHF 20.8 million). Among
the factors contributing to this result were pronounced currency shifts, which
had a negative impact on the proportionally high level of sales in the euro
zone, as well as on the Swiss market, where price reductions had to be granted;
while the cost of procurement, which is largely denominated in US dollars,
increased. A further negative factor was the widespread mild winter weather,
with low snowfall. In addition, growth in the outdoor activities market declined
amid signs of market saturation and increasing competitive pressure,
particularly in the core European markets of Switzerland, Germany and Austria
(the so-called DACH region), which accounts for more than 50% of sales volume.
Mammut Sports Group has a presence in other significant outdoor activities
markets, but is underrepresented overall. Mammut responded to the unfavorable
development of business in 2015 with short- and medium-term measures. These
included the divestment as per mid-2016 of the rope-making business, which
operated under increasing economic pressure, and the concentration and
regionalization of the sales organization. The operating result was adversely
affected by restructuring costs of CHF 2.4 million. To take advantage of growth
opportunities, a strategic program was designed to run for five years. In this
context, Mammut is investing in cooperation with important wholesale customers
and increasing store traffic through more active management of sales space. It
also plans to broaden its geographical footprint by expanding its international
multi-channel sales network. This will entail strengthening the online channel
and opening further mono-brand stores. Part of the strategy is to make greater
use of customer potential in the outdoor activities market, without compromising
on the "absolute alpine" claim. The implementation of the program will have an
adverse effect on the operating result and operational free cash flow of the
Sporting Goods segment in the years ahead.
The Chemical Specialties segment (FoamPartner and Schmid Rhyner) generated net
revenue of CHF 204.5 million in 2015 (previous year CHF 219.2 million). The
acoustic foam specialist Benien - which was acquired in 2014 and integrated in
the course of 2015 - was fully consolidated for the first time over the full 12
months of the reporting period. On a comparable basis, net revenue was 6.3%
lower. The operating result was CHF 18.5 million (CHF 23.8 million), giving an
EBIT margin of 9.1% (10.8%). In Switzerland and in the generally stagnating
European market the further tightening of competitive pressure and negative
consequences of exchange rate movements were apparent. Lower net revenue in
Europe was partly offset by net revenue growth in North America. The operating
result included restructuring costs of CHF 1.7 million.
The Glass Processing segment generated net revenue of CHF 119.9 million in 2015
(previous year CHF 109.5 million). On a comparable basis, net revenue growth was
13.9%. The operating result was CHF 6.4 million (CHF -5.1 million), which
corresponds to an EBIT margin of 5.6% (-4.4%). The business made a welcome
return to profitability after several years of losses. A strongly improved sales
performance, implementation of restructuring measures, as well as general
measures to increase efficiency, contributed to this result. The first half year
was influenced by a series of major orders in North America for the automotive
glass business. Order intake in the architectural glass business in Europe was
strong in the second half. Business in the Asian markets, by contrast, advanced
only hesitantly. Above all the consciously benefit-oriented sales arguments
presented to customers and the high level of service availability have enabled
Bystronic glass to acquire new customers and gain a greater share of the
European architectural glass market.
Trends and outlook
In 2015 all Conzzeta business units developed concrete measures for implementing
their strategic objectives. With the strong footprint in Europe as a base, there
are attractive opportunities for the longer term to broaden the regional
presence in North America and Asia. With an innovative product portfolio and a
sound equity ratio of 78.6%, the Conzzeta Group is well placed to achieve the
long-term goals of the growth initiatives it has defined. Although the
structural efficiency measures agreed in 2015 should begin to take effect in
2016, the expansion phase in the Sporting Goods business unit will initially
have an adverse impact on the Group result, although with the prospects of
attaining a market positioning on a broader international footing. In the short
term, the business performance will be strongly influenced by the specific
market environment of each individual area of activity. Growing macroeconomic
uncertainties and the corrections in financial markets are inhibiting overall
economic development at the moment. Compared with the healthy situation the
previous year, the order books for capital goods at Conzzeta Group companies
were somewhat lower at the end of 2015, although in the USA the upturn
continued. The macroeconomic development means Conzzeta is cautious in its
assessment of the prospects for 2016. In the current situation moderate growth
is expected, with a slight improvement in the profitability at EBIT level
compared with 2015.
For further information please contact:
Michael Stäheli, Head Investor Relations & Corporate Communications
Phone +41 44 468 24 49
media(at)conzzeta.com
About Conzzeta
As an international holding company with diverse interests, Conzzeta strives to
achieve leading positions in its target markets and build a business portfolio
with above-average growth and long-term value creation. The Conzzeta Group
companies are "best choice" for customers, offering innovative solutions in
Sheet Metal Processing, Sporting Goods, Foam Materials, Graphic Coatings and
Glass Processing; the Group has 3,500 employees at more than 60 locations
worldwide. Conzzeta is listed on the SIX Swiss Exchange (SIX:CON).
The News Release including key figures can be downloaded from the following
link.
Media Release (PDF):
http://hugin.info/100413/R/1996380/735650.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Conzzeta AG via GlobeNewswire
[HUG#1996380]
Unternehmensinformation / Kurzprofil:
Datum: 22.03.2016 - 07:00 Uhr
Sprache: Deutsch
News-ID 458999
Anzahl Zeichen: 16625
contact information:
Town:
Zürich
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 227 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Conzzeta AG: Annual Results 2015 - Solid performance in demanding environment"
steht unter der journalistisch-redaktionellen Verantwortung von
Conzzeta AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
