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Bossard Announces Results for H1 2014
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2014-07-16
In the first half of 2014, Bossard set new records for sales and profits. Profitability improved further in spite of higher tax expenditures. The Group benefited from accelerating demand, especially in Europe and Asia. In the first half of 2014, Bossard achieved record sales of CHF 321.0 million (CHF 311.5 million in the previous year period). This is an increase of 5.6 percent in local currency or 3.0 percent in Swiss Francs.
In Europe, sales rose by CHF 12.7 million to CHF 208.2 million year-on-year; a development that gives cause for optimism. The positive demand trend, which Bossard first noticed in the second semester of 2013, continued in the first half of 2014. This increase in demand is particularly significant since 65 percent of Bossard’s sales originate in European markets. European sales climbed by 7.1 percent in local currency and by 6.5 percent in Swiss Francs.
In America, the Group had sales of CHF 65.7 million, a drop of 5.6 percent in local currency. After a decrease of 7.8 percent in Q1, revenue declined by 3.1 percent in Q2. In Swiss Francs, this translated to a drop of 10.1 percent due to currency effects. This revenue decline is primarily caused by weaker demand from a major customer. Announced in March, the three-year agreement with electric vehicle manufacturer Tesla will stimulate business in the second half of the year and greatly improve sales growth in America.
In Asia, the growth trend has continued in an impressive fashion. Sales in local currency rose by a remarkable 17.6 percent to CHF 47.1 million. As a result of the weakness associated with the currencies of some emerging countries, sales growth in Swiss Francs was 9.8 percent. The strong growth in Asia is largely the result of business from new customers. Consolidated net income rose year-on-year by CHF 3.1 million or 10.5 percent to a record of CHF 32.3 million. It is remarkable that in spite of higher tax expenditures Bossard was able to achieve a return on sales of 10.4 percent compared to 9.7 percent in the previous year. This level of profitability makes Bossard a top performer in the industry. Bossard will publish its detailed semi-annual report on August 26, 2014.
