Press Release
BAUWERK GROUP: Net result slightly improved in a challenging environment
The currency-adjusted turnover of the Bauwerk Group in the first half of 2020 was 7.5% below the prior-year period. The 10% drop in volume mainly reflects the effects out of the Covid-19 pandemic. Due to further improvements in material efficiency and productivity the gross margin as well as the operating margins could be improved, EBITDA to 10.5% and EBIT to 5.9%, this despite the decline in sales. The company result of CHF 4.7 million is 2% above the prior-year period.
St. Margrethen, 29 September 2020 - Consolidated net turnover of the Bauwerk Group declined by 12.3% to CHF 128.3 million in the first half of 2020 (prior-year: CHF 146.2 million). Adjusted for significant negative exchange rate impacts when applying the previous year's exchange rate, the reduction amounted to -7.5%. Thanks to the improvements in efficiency in production which were implemented in recent years and further cost-saving measures that were immediately introduced, the key earning figures were improved despite the decline in sales. In the first half of 2020 the operating result EBITDA amounted to CHF 13.4 million which results in an EBITDA margin of 10.5% (9.8% in the prior-year period).
New name of the group
The Bauwerk Group sells its products under the well-known brands Bauwerk Parkett and Boen. The market development is designed for the respective sales channel and the geographic markets. As of September 1, 2020, the group was renamed to BAUWERK GROUP. The proven market presence of the two brands Bauwerk and Boen will be continued.
Efficiency further improved
The international pandemic situation in the first half of the year was inconsistent, as individual markets were completely in lockdown, while construction activity was still possible in others. Overall, the volume sold in the first half of 2020 fell by around 10% to 4.1 million square meters. Despite the decline in volume and sales, the group managed to maintain or even improve margins. Further improvements in productivity and efficiencies in the factories, relaxation in the material procurement markets, significant saving measures in other operating expenses and, last but not least, compensation contributions for short-time-work contributed significantly to this positive development. The operating result EBITDA was CHF 13.4 million, compared to CHF 14.3 million in the prior-year period, resulting in an EBITDA margin of 10.5% (9.8% in the prior-year). Adjusted for negative currency effects, the adjusted operating result EBITDA was CHF 14.7 million, corresponding to an EBITDA margin of 10.9% (prior-year period 10.2%). The operating result after depreciation EBIT amounted to CHF 7.6 million or 5.9% of net sales, compared to CHF 8.1 million or 5.5% EBIT margin in the prior-year. Adjusted for the mentioned currency effects, EBIT was CHF 8.6 million or 6.4% of net sales (prior-year 5.9%). The company result for the first half of 2020 amounted to CHF 4.7 million and was 2% above the prior-year period (CHF 4.6 million).
Solid financing
The balance sheet and financial ratios of Bauwerk Group as of 30 June 2020 remain solid. The equity ratio as of the balance sheet date, including the subordinated shareholder loans, was 43.2% (42.9% as of 30 June 2019). Compared to the previous year, financial liabilities were reduced by around CHF 8.7 million. The subordinated shareholder loan was also reduced by CHF 9.8 million.
Outlook 2020
Due to the continuing uncertainties regarding the speed of the economic recovery and the resulting lack of visibility in the individual markets, the Bauwerk Group is not giving an outlook for the second half of the year. However, the group is confident that with the effect out of the efficiency measures further improvements in productivity and increase in earnings is possible as soon as the volume stabilizes
Consolidated Income Statement |
|
|
|
in 1000 CHF |
2020 |
2019 |
Change. |
|
Jan-Jun |
Jan-Jun |
in % |
|
|
|
|
Net turnover |
128'253 |
146'205 |
-12.3 |
Material and goods |
-59'731 |
-69'082 |
|
Personnel costs |
-30'820 |
-33'009 |
|
Other operating costs |
-24'500 |
-29'714 |
|
Other revenues |
1'169 |
715 |
|
Other expenditures (incl. restructurings) |
-956 |
-740 |
|
Operating results before depreciation and amortisation (EBITDA) |
13'415 |
14'375 |
-6.7 |
EBITDA in % of net turnover |
10.5% |
9.8% |
|
|
|
|
|
Depreciation |
-5'850 |
-6'325 |
|
Operating result (EBIT) |
7'565 |
8'050 |
-6.0 |
EBIT in % of net turnover |
5.9% |
5.5% |
|
|
|
|
|
Financial results |
-2'020 |
-2'200 |
|
Extraordinary / non-recurring expenses |
-45 |
-450 |
|
Result before taxes (EBT) |
5'500 |
5'400 |
1.9 |
EBT in % of net turnover |
4.3% |
3.7% |
|
|
|
|
|
Taxes |
-820 |
-800 |
|
Net income |
4'680 |
4'600 |
1.7 |
Net income in % of net turnover |
3.6% |
3.1% |
|
Consolidated Balance Sheet |
30 Jun 2020 |
in % |
30 Jun 2019 |
in % |
Change |
in % |
in 1000 CHF |
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Cash and cash equivalents |
21'802 |
|
5'873 |
|
|
|
Other current assets |
128'292 |
|
148'230 |
|
|
|
Current assets |
150'094 |
58.3 |
154'103 |
56.6 |
-4'009 |
-2.6 |
|
|
|
|
|
|
|
Financial assets |
1'747 |
|
2'249 |
|
|
|
Tangible fixed and intangible assets |
105'498 |
|
115'866 |
|
|
|
Non-current assets |
107'245 |
41.7 |
118'115 |
43.4 |
-10'870 |
-9.2 |
|
|
|
|
|
|
|
Total assets |
257'339 |
100.0 |
272'218 |
100.0 |
-14'879 |
-5.5 |
|
|
|
|
|
|
|
Equity and liabilities |
|
|
|
|
|
|
Financial liabilities |
96'219 |
|
104'921 |
|
|
|
Other current liabilities |
38'941 |
|
38'714 |
|
|
|
Other non-current liabilities |
10'950 |
|
11'899 |
|
|
|
Total liabilities |
146'110 |
56.8 |
155'534 |
57.1 |
-9'424 |
-6.1 |
|
|
|
|
|
|
|
Shareholder loan |
27'500 |
10.7 |
37'308 |
13.7 |
-9'808 |
-26.3 |
|
|
|
|
|
|
|
Share capital |
76'394 |
|
76'394 |
|
|
|
Capital reserves |
14'062 |
|
14'062 |
|
|
|
Retained earnings (incl. currency
translation differences) |
-6'727 |
|
-11'080 |
|
|
|
Total equity |
83'729 |
32.5 |
79'376 |
29.2 |
4'353 |
5.5 |
|
|
|
|
|
|
|
Total equity and liabilities |
257'339 |
100.0 |
272'218 |
100.0 |
-14'879 |
-5.5 |
Contact
Peter Schmitter, CFO Bauwerk Group
Email: peter.schmitter@bauwerk-group.com, Telefon +41 71 747 72 94
About Bauwerk Group
Bauwerk Group is Europe's leading developer, manufacturer and supplier of parquet flooring in the premium segment as well as the second-largest market participant in wood flooring. With sold volumes of over 8.7 million square meters annually, the Group offers a complementary portfolio of two- and three-layer parquets as well as wooden sports flooring under the two brands Bauwerk and Boen. The key markets Switzerland, Norway and Germany as well as Austria, the UK, France, China and the US are being served by local subsidiaries. Administrative headquarters of the Group are located in St. Margrethen, Switzerland. The production locations are currently concentrated in St. Margrethen and Kietaviškės, Lithuania and Đurđevac/Croatia. During the financial year 2019, the Bauwerk Group generated a net turnover of CHF 281 million and employed around 1'600 people.
Legal information
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