Ad hoc release pursuant to Art. 53 LR
Half-Year Report 2021:
Zurich, August 6, 2021 - In the first half of 2021, with the divestment of the FoamPartner and Mammut business units and the renaming of the Group to Bystronic, the transformation was successfully completed. Order intake and net sales of the continuing operations were substantially above the prior-year period. At constant exchange rates, order intake grew by 62.8% compared to the first half of 2020, while net sales increased by 19.2%. The operating result (EBIT) increased by 30% to CHF 30.3 million, with an EBIT margin of 6.9%. The divestment of the discontinued operations resulted in a cash inflow of CHF 322.7 million.
The continuing operations of Bystronic reported net sales of CHF 440.7 million in the first half of 2021, representing a year-on-year increase of 19.2% at constant exchange rates. Order intake amounted to CHF 549.5 million, a currency-adjusted increase of 62.8%. In comparison to the pre-pandemic levels of the first half of 2019, the growth at constant exchange rates was 4.4% for net sales and 27.6% for order intake. The service business, a key growth driver of the Strategy 2025, contributed 22.9% to sales in the first half of the year, compared to 19.9% in H1 2020 and 20.4% in H1 2019. The positive business performance was broad-based in all regions.
Key figures - continuing operations
Bystronic achieved an operating result (EBIT) of CHF 30.3 million with an EBIT margin of 6.9% compared to 6.3% in the previous year. In the first half of the 2021, one-off costs in connection with the transformation of the Group were incurred. Adjusted for these costs, the EBIT margin for the first half of 2021 stands at 8.0%, somewhat impacted by the strategic expansion of the service business and the associated recruitment of additional service technicians. The EBITDA amounted to CHF 39.4 million or 8.9% of net sales (H1 2020: 8.5%). As in other industries, higher raw material prices and limited shipping capacities proved to be challenging both for Bystronic and our customers. Thanks to our increasingly regional organization and sourcing, we were able to partially mitigate the impact of this on our performance.
In the first half of 2021, Bystronic acquired the software specialist Kurago, in order to accelerate the market launch of smart factory solutions. Initial pilot projects are scheduled for the second half of 2021.
Alex Waser, CEO Bystronic Group, states: "Following the successful completion of the transformation, the listing on SIX Swiss Exchange and the encouraging business development in the first half of 2021, we are confident that we are on track to achieving the growth targets set out by our Strategy 2025. Our regional structure and the expansion of our service business mean that we can now respond even more effectively to our customers' needs."
Assuming that the positive business development witnessed in the first half of 2021 extends into the second half of the year, the situation on the procurement markets does not accentuate and inflation remains stable, Bystronic expects sales growth for its continuing operations of around 15% in the 2021 financial year, with an EBIT margin of 8 to 9%.
With the divestments of FoamPartner at the end of March 2021 and Mammut as of June 30, 2021, Bystronic has successfully completed its transformation. Net sales of the discontinued operations amounted to CHF 183.6 million, to which FoamPartner contributed CHF 76.3 million in the first quarter of 2021 (+13.4% at constant exchange rates) and Mammut CHF 107.3 million for the full first half-year 2021 (+32.9% at constant exchange rates).
The operating result (EBIT) of the discontinued operations amounted to CHF -85.5 million. The divestment loss of FoamPartner accounted for CHF -78.5 million, resulting from the goodwill recycling as prescribed by Swiss GAAP FER.
The Group's net sales amounted to CHF 624.3 million in the first half-year of 2021, an increase of 8.4%. The operating result (EBIT) was CHF -55.2 million, due to the divestment loss of FoamPartner. In the prior-year period, the operating result (EBIT) was CHF 1.8 million, excluding CHF 48.1 million divestment gain from the sale of Schmid Rhyner, which was completed at the end of February 2020. Overall, the Group result for the first half of 2021 was CHF -60.9 million (H1 2020: CHF 46.6 million). For the continuing operations, the Group result amounted to CHF 23.3 million, an increase of CHF 6.7 million compared to the previous year.
The earnings per class A registered share were CHF -29.50 for the Group or a pro-forma CHF 11.19 for the continuing operations.
Operating free cash flow for the continuing operations was CHF 19.7 million compared to CHF -24.4 million in H1 2020. In addition, Bystronic recorded a cash inflow from the divestments of the FoamPartner and Mammut business units of CHF 322.7 million. After the distribution of CHF 124.2 million in dividends for the 2020 financial year, Bystronic held cash, cash equivalents and securities of CHF 480.8 million at mid-year.
The Board of Directors proposes not to distribute an interim dividend and will state its position in the context of the Annual Report 2021.
Alex Waser, CEO Bystronic Group, and Beat Neukom, CFO Bystronic Group, will present the results of the first half-year 2021 during a conference call and webcast in English on August 6, 2021 at 10:00 a.m. CET.
Conference call participants should dial in 10 to 15 minutes prior to the start of the conference as follows:
Bystronic (SIX: BYS) is a leading global technology company in the field of sheet metal processing. The focus is on the automation of the complete material and data flow of the cutting and bending process chain. The intelligent networking of laser cutting systems and press brakes based on innovative automation, software and service solutions is key to achieving the comprehensive digitalization of the sheet metal processing industry.
Bystronic's operational headquarters are located in Niederönz, Switzerland. Additional development and production sites are located in Sulgen (Switzerland), Gotha (Germany), Cazzago San Martino and San Giuliano Milanese (Italy), Tianjin and Shenzhen (China), and Hoffman Estates (USA). We are active with our own sales and service companies in more than 30 countries and are represented by agents in numerous other countries.
This communication contains forward-looking statements, which are subject to uncertainty and risks. Actual future results may differ materially from those expressed in or implied by these statements. Some of these uncertainties and risks relate to factors that are beyond Bystronic's ability to control or predict precisely, such as, in particular, future market conditions, currency fluctuations, or the behavior of other market participants. Readers are cautioned not to put undue reliance on forward-looking statements, since these relate only to the date of this communication. Bystronic disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or any other factors.
File: Bystronic AG: Half-Year Report 2021