Ad hoc release: Interim report 2017 Interroll reports strong order intake, net sales and cash flow

Ad hoc release: Interim report 2017

Interroll reports strong order intake, net sales and cash flow

  • Record new orders of CHF 244.5 million (+13.2%)
  • Strong order intake growth in all regions, Asia-Pacific grows by +33.7%
  • Net sales reached record high of CHF 203.3 million (+8.6%), and EMEA grows by +12.0%
  • Higher research and development costs reduce result slightly
  • EBITDA drops to CHF 29.6 million (-4.0%), and net profit to CHF 15.3 million (-3.1%)
  • Operating cash flow rises substantially by 24% to CHF 17.6 million
  • Strong order book permits positive outlook for second half of 2017

Sant’Antonino, Switzerland, August 4, 2017—The Interroll Group repeated its excellent 2016 financial year performance in the first half of 2017 and successfully continued its growth strategy with very strong new orders, net sales and cash flow.

 

  • Record new orders of CHF 244.5 million (+13.2%)
  • Strong order intake growth in all regions, Asia-Pacific grows by +33.7%
  • Net sales reached record high of CHF 203.3 million (+8.6%), and EMEA grows by +12.0%
  • Higher research and development costs reduce result slightly
  • EBITDA drops to CHF 29.6 million (-4.0%), and net profit to CHF 15.3 million (-3.1%)
  • Operating cash flow rises substantially by 24% to CHF 17.6 million
  • Strong order book permits positive outlook for second half of 2017

 

In the first half, Interroll received record new orders for CHF 244.5 million (previous year CHF 216.1 million) and reported 13.2% growth (organic: 12.8%), or 14.9% in foreign currencies. All regions reported order intake growth, with Asia-Pacific doing particularly well at +33.7%. Net sales climbed to a new high of CHF 203.3 million (previous year: CHF 187.1 million) and improved by 8.6% (organic: 8.2%), or 10.6% in foreign currencies. The Europe-Middle East-Africa (EMEA) region posted particularly strong growth of 12.0% for the reporting period. The book-to-bill ratio was 1.20 (previous year: 1.15).

Growing product business, promising project demand

The strong demand for the “Rollers” product group is reflected in the record production figures. In the first half, Interroll produced more rollers and RollerDrives than ever before. At CHF 53.3 million, consolidated revenue was up by another 11.2% on the prior-period record of CHF 48.1 million, while consolidated new orders rose by 18.2% to CHF 55.1 million (previous year: CHF 46.6 million). All regions made a positive contribution to this development, with demand in China providing a particular highlight.

Sales for the “Drives” product group grew by 16.2% in the first half to CHF 71.1 million (previous year: CHF 61.7 million). Order intake rose by 17.8% to CHF 75.5 million (previous year: CHF 64.1 million). Particularly strong growth for drum motors was reported for the America region (+24%) and the Asia-Pacific region (+15%). Because of the strong demand for rollers powered by a 24V motor and in order to develop new technologies in this field, Interroll continued to expand its capacities in Wermelskirchen in Germany in 2017.

At the end of the first half of 2017, sales for the “Pallet & Carton Flow” product group were down by 17.7% to CHF 27.0 million (previous year: CHF 32.8 million). Order intake dropped by 7.5% to CHF 28.6 million (previous year: CHF 30.9 million). Some projects in South Africa could be invoiced in the current year. The big mineral water project in Asia that was invoiced last year could not be compensated, however.

Net sales of the “Conveyors & Sorters” product group rose by 14.8% in the first half of 2017 to CHF 51.1 million (previous year: CHF 44.5 million). Order intake rose once again by 14.4% to CHF 85.2 million (previous year: CHF 74.5 million). In the first half of 2017, Interroll received new orders for equipping the distribution centers of a leading courier company in North America.

Regions reflect globalization

Interroll continued its globalization strategy in the first half of 2017 by opening up new markets, such as Mexico. This is reflected in the distribution of sales: EMEA accounted for 61% of total revenue, America for 28% and Asia-Pacific for 11%.

In the EMEA region, incoming orders, already at a high level, increased by another 3.5% on the previous year to a total of CHF 135.3 million. At CHF 124.8 million, sales were up 12.0% the prior-year period. As in the past, this growth was driven by a huge demand for rollers, drives and conveyor belts, particularly in Central, Eastern and Northern Europe.

Within the Interroll Group, the America region reported a high rate of growth for the first half of 2017. Sales amounted to CHF 56.4 million, up 9.5% the prior-year period. Order intake, which grew by 25.7% to CHF 76.6 million, added substantial impetus to the success of this region. In the first half of 2017, Interroll received new orders for equipping the distribution centers of a leading courier company in North America.

Interroll also did well in the Asia-Pacific region in the first half of 2017. As a big order in the mineral water segment was finished in the previous year, sales for the first six months dropped by 8.7% to CHF 22.1 million, but order intake grew substantially (33.7%) to a total of CHF 32.6 million.

Results reduced slightly by higher research and development costs

Earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped by 4.0% in the first half of 2017 to CHF 29.6 million (previous year: CHF 30.9 million), mainly as a result of higher research and development costs for new products and services. The EBITDA margin was 14.6% (previous year: 16.5%).

Earnings before interest and taxes (EBIT) amounted to CHF 20.5 million (previous year: CHF 22.0 million), while the EBIT margin stood at 10.1% (previous year: 11.7%). Net profit fell by 3.1% to CHF 15.3 million (previous year: CHF 15.8 million). The net profit margin was 7.5% (previous year: 8.4%).

Higher investments

At CHF 9.7 million, gross investments were considerably higher than in the previous year (CHF 6.3 million). These in particular include the further expansion of capacity in Germany at the Center of Excellence for rollers in Wermelskirchen and the purchase of land reserves for the Regional Center of Excellence for belt curves in Kronau.

Strong cash flow

Thanks to good balance sheet management, operating cash flow increased substantially on the prior-year period (CHF 14.2 million) by 23.9% to CHF 17.6 million. In spite of higher investments, free cash flow at CHF 8.2 million was almost on a par with the previous year (CHF 8.3 million).

Solid balance sheet performance

Total assets increased to CHF 332.9 million on 30 June 2017, up 2.5 % from the end of 2016 (CHF 324.8 million). Also due to the payment of a dividend of CHF 13.6 million in May 2017, net financial assets dropped to CHF 28.8 million as at 30 June 2017 (31 December 2016: CHF 38.0 million). Equity declined by 0.8% to CHF 231.2 million (31 December 2016: CHF 233.1 million). The equity ratio was 69.5%, compared to 71.8% at the end of 2016.

Positive outlook

Thanks to the record new orders received by June 30, 2017 and major project orders, Interroll can look forward to the second half of 2017 with confidence. It also has good long-term potential for growth with its strong global market position, innovative products and high-growth core markets such as e-commerce, airports, food processing, distribution and industry.

Key figures for first half of 2017 (in CHF million)

Overview of key
financial figures (in CHF million)

H1/2017

H1/2016

H1/2015

H1/2014

H1/2013

Income statement

New orders

244.5

216.1

206.3

172.9

170.6

Net sales

203.3

187.1

171.3

157.1

149.1

EBITDA

29.6

30.9

26.5

18.2

21.4

EBITDA margin

14.6%

16.5%

15.5 %

11.6 %

14.4 %

EBIT

20.5

22.0

17.5

8.8

13.1

EBIT margin

10.1%

11.7%

10.2 %

5.6 %

8.8 %

Cash flow

Operating cash flow

17.6

14.2

11.6

5.0

17.6

Free cash flow

8.2

8.3

-0.6

0.03

11.2

Balance sheet

30.06.2017

31.12.2016

31.12.2015

31.12.2014

31.12.2013

Total assets

332.9

324.8

293.0

278.2

258.2

Equity

231.2

233,1

207.6

200.3

187.2

Equity ratio

69.5%

71,8%

70.9 %

72.0 %

72.5 %

The 2017 interim report as well as further information can be found under Investor Relations at www.interroll.com.

We are at your disposal to answer any further questions from 8:309:30 a.m. on August 4, 2017:

Paul Zumbühl, Group CEO                             Daniel Bättig, Group CFO

+41 91 850 25 24                                             +41 91 850 25 44

p.zumbuehl@interroll.com                                d.baettig@interroll.com

An English-language webcast providing explanations to the interim report will take place at 10 a.m. on August 4, 2017.

Contact person

Martin Regnet

Interroll (Schweiz) AG

Global PR Manager

m.regnet@interroll.com

www.interroll.com

 

Interroll Holding AG

P.O. Box 566 - Via Gorelle 3

CH-6592 Sant'Antonino

T +41 (0)91 850 25 25

F +41 (0)91 850 25 05

Investor Relations:

www.interroll.com

investor.relations@interroll.com

Image caption: Interroll Holding AG in Sant’Antonino, Switzerland successfully continued its growth strategy in the first half of 2017 with very strong new orders, net sales and cash flow.