In spite of demanding currency and market conditions, the Datwyler Group managed to achieve organic revenue growth of 1.8% during 2015. Unaudited net revenue amounted to CHF 1'165.2 million. Negative currency effects associated with translation into Swiss francs came to CHF 95.4 million or -7.9%. While the Sealing Solutions division achieved organic growth of 4.9%, the Technical Components division suffered an organic reverse of -2.4%. The Datwyler Group is expecting the EBIT margin for 2015 to be within the target range of 10% to 13%. The net result is expected to be lower than the previous year due to significant currency losses and a higher tax rate.
The Datwyler Group achieved unaudited net revenue of CHF 1'165.2 million during 2015 against a background of demanding currency and market conditions (previous year: CHF 1'212.6 million, continuing operations without Maagtechnic). The strong Swiss franc resulted in negative currency effects of CHF 95.4 million or -7.9% following translation of revenue from abroad. At constant exchange rates revenue growth came to 4.0%. The businesses Columbia Engineered Rubber and Origom, acquired in 2014 and 2015, contributed CHF 26.9 million or 2.2% to this figure. Which means organic revenue growth was 1.8%. "In 2015 the Datwyler Group further consolidated the foundations for future growth. The strong franc was a particular challenge for the Technical Components division. Regarding the EBIT margin for the Group, we are expecting to be in the target band of 10% to 13% we set ourselves for 2015," explains CEO Paul Hälg.
Technical Components division with encouraging early indicators
Under its new management team, the Technical Components division worked successfully on rapidly implementing its strategic integration projects in 2015. Thanks to significant improvements in product availability, shorter delivery times and higher satisfaction rates, Distrelec managed to increase the number of active customers and revenue during the last quarter. For 2015 as a whole net revenue from continuing operations fell by -2.4% in organic terms, in spite of the encouraging early indicators. This is due in part to the challenging market environment for distributors of electronic goods as well as Distrelec’s unsatisfactory supply capability in the first half year. Another factor was the rising Swiss franc, which had a greater-than-expected impact on performance in Switzerland and resulted in negative currency effects worth CHF 54.8 million or –10.4% following translation of revenue from abroad. As a result, reported net revenue fell to CHF 459.3 million (previous year: CHF 526.5 million, continuing operations without Maagtechnic). Reichelt continued to develop nicely and is expanding into new countries across Europe. Nedis made further progress too, despite a strong headwind.
Sealing Solutions division on course for profitable growth
The Sealing Solutions division is on course for profitable growth. It managed to increase net revenue for 2015, compared with the previous year, to CHF 705.9 million (previous year: CHF 686.4 million). At constant exchange rates this equates to growth of 8.8%. Adjusted for foreign currency translation and acquisition effects, the resulting organic growth in revenue was 4.9%. Demand increased again in the Health Care market segment, which returned to previous levels of growth. The Automotive market segment benefited from pleasing levels of demand in Europe and the USA. Columbia Engineered Rubber in the USA and Origom in Italy, which were acquired in 2014 and 2015, also made a contribution in this area. Growth in China and the other Asian countries in the year under review was much lower than in previous years when growth had been strong. Datwyler completed the revision of its product portfolio in the Civil Engineering market segment and was able to post record incoming order levels by the end of the year. The Nespresso order in the Consumer Goods market segment continued to develop nicely and delivered a decent rate of growth.
(Unaudited) (In CHF)
Net revenue 2015 2014 Change Exchange rate Changes to scope of consolidation Organic change
Technical Com. 459.3 Mio. 526.5 Mio. -12.8% -10.4% -------- -2.4%
Sealing Sol. 705.9 Mio. 686.4 Mio. 2.9% -5.9% 3.9% 4.9%
Datwyler Group 1'165.2 Mio. 1'212.6 Mio. -3.9% -7.9% 2.2% 1.8% *Continuing operations
Datwyler Group (www.datwyler.com)
The Datwyler Group is a focused industrial supplier with leading positions in global and regional market segments. With its technological leadership and customised solutions, the Group delivers added value to customers in the markets served. Datwyler concentrates on markets that offer opportunities to create more value and sustain profitable growth. The Technical Components Division is one of Europe’s foremost high-service distributors of electronic, ICT and automation components and accessories. The Sealing Solutions Division is a leading supplier of custom sealing solutions to global market segments, such as the health care, automotive, civil engineering and consumer goods industries. With a total of more than 50 operating companies, sales in over 100 countries and some 7,000 employees, the Datwyler Group generates annual revenue of some CHF 1,200 million. The Group has been listed on the SIX Swiss Exchange since 1986 (security number 3048677).
The financial statements and full Annual Report 2015 will be published on 4 March 2016 and commented on at the Annual Press Conference and Analyst Conference to be held on the same day (10 a.m., SIX Group Services AG, ConventionPoint, Zurich).
Enquiries: Guido Unternaehrer, Head Corporate Communications, Tel. 041 875 19 00
Photos (in print quality): www.datwyler.com > Media > Image Library
Annual Press Conference and Analyst Conference 4 March 2016
Annual General Meeting 5 April 2016
Interim Report 2016 12 August 2016