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2012 Third Best Year in History of Bossard
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2013-05-20
Bossard Group earned the third best result in its history in 2012 despite a generally difficult business environment. Consolidated net income decreased by CHF 1.9 million to CHF 42.9 million (approximately 34.8 million euros). 2012 total sales were CHF 487.1 million - up 2.9% year on year. Excluding the KVT acquisition organic growth was 2.1% in Swiss Francs, 0.8% in local currencies. Bossard says that in Europe its regional companies were affected by the sluggish demand but the acquisition of new customers kept the sales slump within bounds – sales fell 0.7% in local currency. Asian sales were down 2.6% in local currency.
Bossard succeeded in maintaining a high level of profitability. Operating profit (EBIT) margin was 10.1%, the third consecutive year it has been in double digits. Operating margin improved in Europe and America, but fell in Asia. Overall the Group return on sales fell from 9.8% in 2011 to 9.1% in 2012 - the difference attributable, says Bossard, to higher employment costs and tax expenditure, the later due to “growing tax burden in individual countries”. “Although there was definitely a lack of momentum last year, the Bossard Group nevertheless earned a good result,” says CEO, David Dean. “I feel positive about the fact that we gained new customers in fiscal 2012 and were able to expand our product line.”
Bossard will ask its AGM to approve a rights issue generating approximately CHF 80 million, which is expected to return its equity ratio to 35% (it fell from 62.3% to 13.3% as result of the KVT acquisition). Bossard will pay approximately 40% of consolidated net profit to its shareholders. Bossard invested around CHF 25 million in 2012, a “good half” dedicated to completing its new technology and logistics center in Switzerland. The Group will expand office and logistics capacities in Malaysia and Korea during the current business year.
Expressing cautious optimism about the outlook, David Dean said: “After the difficult situation over the past eighteen months, 2013 may become a year in which we regain some momentum.”
Bossard succeeded in maintaining a high level of profitability. Operating profit (EBIT) margin was 10.1%, the third consecutive year it has been in double digits. Operating margin improved in Europe and America, but fell in Asia. Overall the Group return on sales fell from 9.8% in 2011 to 9.1% in 2012 - the difference attributable, says Bossard, to higher employment costs and tax expenditure, the later due to “growing tax burden in individual countries”. “Although there was definitely a lack of momentum last year, the Bossard Group nevertheless earned a good result,” says CEO, David Dean. “I feel positive about the fact that we gained new customers in fiscal 2012 and were able to expand our product line.”
Bossard will ask its AGM to approve a rights issue generating approximately CHF 80 million, which is expected to return its equity ratio to 35% (it fell from 62.3% to 13.3% as result of the KVT acquisition). Bossard will pay approximately 40% of consolidated net profit to its shareholders. Bossard invested around CHF 25 million in 2012, a “good half” dedicated to completing its new technology and logistics center in Switzerland. The Group will expand office and logistics capacities in Malaysia and Korea during the current business year.
Expressing cautious optimism about the outlook, David Dean said: “After the difficult situation over the past eighteen months, 2013 may become a year in which we regain some momentum.”
