Bobst improves its sales by 9% with profit up 26%

Higher results for 2016 reflect increased business in Asia but a slowdown in Europe

switzerlandBobst Group, a Switzerland-based worldwide leading supplier of equipment and services to the packaging and label industries, achieved consolidated sales of CHF1.447bn in 2016, an increase of CHF116m, or 8.7%, from 2015.

Sales reached CHF 847m in the second half of 2016, up from CHF600m in the first six months. Sales of sheet-fed products increased by 8.5% to CHF 714m.

This growth was driven by a very strong demand for products for the corrugated industry. Demand for products for the folding carton industry remained stable. Sales of webfed products increased by 4.0% reaching CHF309m for the year 2016. The demand for special

machines and complex lines remained at a similarly low level as in 2015. Sales of services and spare parts strongly increased, up 12.8% to CHF423m. This represents the best year since the creation of the Business Unit Services in 2010.

Sales in Europe increased by CHF9m. A significant improvement in countries including Italy, Switzerland, and Ukraine was partly eroded by lower sales in Poland, Germany the UK and Austria.

Sales in the Americas increased by CHF42m, mainly driven by growth in the US and Mexico. Sales in Asia & Oceania increased by CHF42m, mainly in countries including Japan, Turkey, Australia, and Vietnam.

The general slowdown in China led to a further decrease in sales in that country. Africa increased by CHF23m with Morocco and South Africa contributing most to this growth.

The operating result (EBIT) was CHF103.7m (CHF 83.9m in 2015), while the net result was CHF84.3m (CHF 67.1m in 2015).

Cash increased by CHF46.3m contributing to a net cash position of CHF51.3m reversing net debt of CHF 1.7m in 2015.

The return on capital employed (ROCE) increased to 19.9% compared with 16.0% in 2015 and the shareholders’ equity ratio increased to 33.9% from 31.1% in the previous year.

Order entries during 2016 improved on the previous year for the Business Unit Web-fed, while entries for the Business Unit Sheet-fed decreased.

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Bobst’s performance improved despite headwinds in Europe

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