Ad-hoc announcement on annual results 2015

Adval Tech improves operating earnings

Niederwangen, April 15, 2016, 5.45 p.m. – With total income of CHF 224.3 million (2014: CHF 247.0 million), the Adval Tech Group posted EBITDA of CHF 24.4 million (2014: CHF 23.3 million), EBIT of CHF 9.8 million (2014: CHF 8.9 million) and a positive consolidated profit of CHF 0.6 million (2014: CHF 1.9 million). By implementing targeted steps, the Group was able to limit the negative impact by the Swiss National Bank’s lifting of the euro-franc exchange rate floor.



The Adval Tech Group is systematically implementing its focusing strategy. Construction of a Company-owned plant in Mexico, which officially opened in November 2015, is testimony to this determination, as is the acquisition of Fischer IMF at the end of March 2016. Adval Tech's Components segment focuses on the automotive market and related applications in other industries.

 

At CHF 224.3 million, the Group's total income in the review period was CHF 22.7 million below the previous year's figure (CHF 247.0 million). Two thirds of this 9.2% contraction was due to exchange rate movements. Certain products produced at the plants in Switzerland and mostly exported to the EU reached the ends of their life cycles, further negatively impacting total income. At constant exchange rates, total income declined by only 2%. The Components segment accounted for some 68% of total income (2014: 66%) while the Molds segment made up the remaining 32% (2014: 34%).

 

The Adval Tech Group's EBITDA grew by 4.7% in the year under review to CHF 24.4 million (2014: CHF 23.3 million). Despite the decline of some CHF 23 million in total income, the EBITDA margin thus improved from 9.4% to 10.9%. Net of currency effects the margin was 11.9%. Adval Tech achieved these encouraging results through further improvements in productivity, rigorous cost control and by exploiting additional synergies. Adval Tech lifted EBIT in the year under review to CHF 9.8 million (2014: CHF 8.9 million), corresponding to an EBIT margin of 4.4% (2014: 3.6%). Net of currency effects the EBIT margin was 5.6%.

 

The net result for 2015 includes CHF 4.5 million in exchange rate losses due to the Swiss National Bank's decision in mid-January 2015 to eliminate the EUR/CHF exchange rate floor. Thanks to operational efforts whose impact unfolded primarily in the second half of the year, Adval Tech was largely able to offset this currency loss. Overall, the Adval Tech Group posted a net result of CHF 0.6 million (2014: CHF 1.9 million, first half of 2015: CHF -2.8 million).

 

Segment results

In the 2015 review period the Components segment (metal and plastic components) generated total income of CHF 153.1 million, CHF 11.3 million less than in the previous year (2014: CHF 164.4 million). At constant exchange rates the segment would have experienced a decline of only 3.6%. Thanks to a successfully implemented cost reduction program, efficient cost control and contracts for two complementary plant projects, the Components segment posted EBITDA of CHF 12.3 million (2014: CHF 10.2 million). Net of currency effects the total was CHF 3.2 million above the year-back figure. The Components segment raised its EBIDTA margin by 1.8 percentage points to 8.0% (2014: 6.2%).

 

The Molds segment, which trades under the name FOBOHA, generated total income of CHF 74.4 million in 2015 (2014: CHF 86.1 million). This corresponds to a decline of CHF 11.7 million compared with the prior-year period. In the second half of the year the segment was able to successfully complete some of the projects that had been deferred during the first half. At constant exchange rates the Molds segment would have posted total income equal to the previous year's strong figure. At CHF 9.7 million, EBITDA was CHF 1.3 million below the prior-year figure of CHF 11.0 million. The EBITDA margin, by contrast, rose to 13.0% (2014: 12.7%).

 

Adval Tech will provide detailed information on the annual financial statements 2015 and an initial review of the Group’s development in the current year at its press conference in Zurich on Tuesday, April 26, 2016. The Annual General Meeting of Adval Tech Holding Ltd will be held on Thursday, May 19, 2016.

 

Key figures

2015

2014

Change

 

 

 

 

absolute

in %

Total income (CHF millions)

224.3

247.0

-22.7

-9.2 

Net turnover (CHF millions)

215.2

240.0

-24.8

-10.3 

Operating earnings before depreciation EBITDA (CHF millions)

24.4

23.3

1.1

4.7 

Operation earnings EBIT (CHF millions)

9.8

8.9

0.9

10.1

Net result (CHF millions)

0.6

1.9

-1.3

-68.4

Free cash flow (CHF millions)

5.0

2.8

2.2

78.6

Number of employees on December 31

1‘482

1‘603

-121

-7.5


Background information about the Adval Tech Group

Adding value through innovation – that's what Adval Tech stands for. Adval Tech is the partner of choice – for high-volume components manufactured in metal and plastic and for high-performance molds for the production of plastic components. In the components business, Adval Tech focuses on the automotive market and on related applications. Adval Tech's principal markets in the mold-making segment are consumer and personal care, packaging, medical and automotive. Adval Tech covers the entire value chain as a one-stop-shop, from product development to prototyping, to mold and tool development, and through to component production and assembly.

 

Contact

Valeria Poretti, Head Corporate HR/Communication, phone +41 31 980 82 66, valeria.poretti@advaltech.com

Markus Reber, CFO, phone +41 31 980 82 70; markus.reber@advaltech.com

 

Agenda

April 26, 2016: Conference for financial analysts and press conference on annual report 2015

April 26, 2016: Publication of the annual report 2015

May 19, 2016: General meeting of shareholders 2016

End of August 2016: Announcement of semi-annual results 2016


Download
Media release (PDF)
back