First Half of 2016 – First results
July 14, 2016Increasing growth dynamic in second quarter
The Bossard Group maintained good growth in the first half of 2016 in a market environment that continues to be challenging. Sales grew by 2.1 percent over the previous year to CHF 343.6 million. Fortunately, the positive growth dynamics enabled the Group to boost the sales in the second quarter by 3.3 percent (0.9 percent in the first quarter). The European business, which accounts for around 60 percent of total sales, contributed significantly to the Group’s growth. Against this backdrop, the net income rose by 5.6 percent to CHF 31.3 million.
Bossard grew half-year sales in the European business by 4.4 percent to CHF 207.7 million (up by 2.3 percent in local currency) compared to the same period in 2015. Key markets such as Germany, France and Denmark logged above-average growth rates; these are countries in which Bossard invested heavily in the past several years. Demand climbed in Europe in the second quarter, boosting sales for the period by 6.3 percent to CHF 104.1 million (up by 3.4 percent in local currency). Last but not least, demand in Switzerland also played a role in this upswing.
In America, where Bossard enjoyed a growth spurt in 2015, the Group is currently up against highly contrasting business developments with two major customers. Compared to the previous year, sales for the first six months fell slightly by 0.9 percent to CHF 86.4 million (a 4.5 percent drop in local currency). A major customer in the agricultural technology sector is facing a doggedly challenging market, which, as expected, was reflected in the fall in sales volume. To our satisfaction, business with the largest US electric vehicle manufacturer was up, even though the number of vehicles produced in the first six months fell short of the original forecast. For several weeks, however, production output is clearly trending upward. We assume that this positive trend will continue in the second half of the year. As long as that holds true, we expect the Bossard Group to achieve an increase in sales in America for the entire year.
In Asia, sales decreased in the first half of the year by 1.4 percent to CHF 49.5 million; in local currency this resulted in a plus of 1.6 percent. In China, our largest market in Asia, demand remained sluggish. However, the slight sales drop in this market region was more than compensated by additional business in other countries. The progress of our activities in India, Taiwan, and Singapore is particularly promising.
Overall, the Bossard Group increased net income in the first half of 2016 by 5.6 percent to CHF 31.3 million.
|
Net sales 2nd quarter |
Change in % |
|||
|
in CHF million |
2016 |
2015 |
in CHF |
in local |
|
Europe |
104.1 |
97.9 |
6.3% |
3.4% |
|
America |
42.6 |
43.0 |
-0.9% |
-5.1% |
|
Asia |
26.5 |
26.7 |
-0.7% |
1.9% |
|
Group |
173.2 |
167.6 |
3.3% |
0.9% |
|
Net sales January - June |
Change in % |
|||
|
in CHF million |
2016 |
2015 |
in CHF |
in local |
|
Europe |
207.7 |
199.0 |
4.4% |
2.3% |
|
America |
86.4 |
87.2 |
-0.9% |
-4.5% |
|
Asia |
49.5 |
50.2 |
-1.4% |
1.6% |
|
Group |
343.6 |
336.4 |
2.1% |
0.4% |