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BBAUWERK GROUP: Good results due to efficiency- and cost-measures

·10-min read

Bauwerk Group AG / Key word(s): Annual Results

22-Apr-2021 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

Press Release

BAUWERK GROUP: Good results due to efficiency and cost measures

Currency-adjusted turnover of the Bauwerk Group in the 2020 financial year was 3.5% below the previous year. The decline in volumes, which was mainly due to the pandemic, amounted to 6.3%. Nevertheless, the Bauwerk Group achieved encouraging increases in operating results thanks to further progress in material efficiency and productivity as well as the rapidly introduced cost adjustments made necessary by the Covid-19 pandemic. The EBITDA margin was expanded by 140 basis points to 11.9% and the EBIT margin to 7.4% (previous year 6.3%). Net income decreased to CHF 11.8 million (previous year CHF 12.9 million) due to negative exchange rate effects in the financial result as well as higher tax expenses, whereas the previous year's figure had benefited from one-off tax effects.

St. Margrethen, 22 April 2021 - Consolidated net turnover of the Bauwerk Group in the year under review amounted to CHF 261.4 million, 7.1% below the previous year (CHF 281.4 million). Adjusted for significant negative currency differences when applying the previous year's exchange rates, the decline in turnover was 3.5%. Thanks to the measures initiated in previous years to increase site efficiencies, short-time lower material costs and the effects of pandemic-related cost-cutting measures and adjustments, the Group succeeded in achieving encouraging improvements in operating margins in a reporting year dominated for much of it by the Covid-19 pandemic. The currency adjusted operating result before depreciation and amortization (EBITDA) amounted to CHF 32.9 million, corresponding to a margin of 12.6% (previous year: 10.9%).

New Group name
The Bauwerk Group sells its products under the two well-known brands Bauwerk and Boen. Market development is geared to the respective sales channels and geographic markets. As already announced with the half-year results, the Group was renamed BAUWERK GROUP as of 1 September 2020. The proven market presence of the two brands Bauwerk and Boen remains unchanged.

Consistently implemented efficiency measures pay off
Following a mixed situation in the first half of the year, in which some of our markets were in complete lockdown at times while construction activity remained possible in others, the trend stabilized in the second half of the year. Overall, the volume sold in the 2020 financial year declined by 6% (after a fall of -10% at the half-year mark) to around 8.2 million square meters. Thanks to the efficiency measures already implemented at the plants in previous years and the easing of the situation on the materials procurement market, the Group succeeded in improving its gross margin (after materials usage) by 80 basis points despite the decline in volumes and turnover. Operating costs also benefitted from savings measures implemented immediately at the beginning of the pandemic, together with lower expenses for travel and marketing (fewer trade shows and exhibitions). Short-time compensation and similar governmental contributions totaling approximately CHF 2 million further helped to compensate for the negative operational impact of the pandemic. As a result of these positive operating effects, the operating result before depreciation and amortization (EBITDA) of CHF 31.2 million was 5.3% above the previous year (CHF 29.6 million). The resulting EBITDA margin was 11.9% (10.5% in the previous year; plus 140 basis points).

Adjusted for negative currency effects, EBITDA amounted to CHF 32.9 million, corresponding to an EBITDA margin of 12.6% (previous year 10.9%). The operating result after depreciation and amortization (EBIT) amounted to CHF 19.5 million or 7.4% of net sales, compared to CHF 17.6 million or an EBIT margin of 6.3% in the previous year (plus 110 basis points). Adjusted for the aforementioned currency effects, EBIT was CHF 20.8 million or 7.7% of net sales (previous year 6.6%). Net income of CHF 11.8 million was 8.8% below the previous year (CHF 12.9 million), mainly because of a higher negative financial result due to negative exchange rate effects and a tax burden of close to CHF 2 million, whereas in the previous year one-off tax effects had been positive.

Declining market developments
In terms of regional distribution, sales in the important DACH region declined slightly overall, while sales in Scandinavia fell by 16%. In the export markets outside Europe, especially Asia and the USA, which contributed around 5% to Group turnover, sales also declined by 23% in the first quarter, not least due to construction site stops in China.

Cash Flow and financing
In the year under review, the Bauwerk Group achieved a considerable increase in free operating cash flow (cash flow from operating and investing activities) to CHF 38.4 million (previous year CHF 18.1 million). In addition to the positive result, lower investments in property, plant and equipment and intangible assets also contributed to this. On the one hand, the investment programs in the production infrastructure were already completed in 2019, on the other hand, capex investments were deliberately stopped in 2020 due to liquidity considerations. In addition, inventories were lower by CHF 15 million as of the reporting date and accounts receivables were also reduced compared to the end of 2019.

After repayment of net liabilities, including the subordinated shareholder loan, by a total of CHF 17.5 million, cash and cash equivalents increased by CHF 20.7 million to CHF 34.5 million (previous year CHF 13.8 million). The equity ratio including the subordinated shareholder loan improved to 46.0% as of the balance sheet date (previous year 45.0%). Thus, the balance sheet and financial ratios of the Bauwerk Group as of 31 December 2020 remain solid.

Outlook
As the economic developments are currently difficult to predict, not least in connection with the global corona pandemic, the Bauwerk Group is presently refraining from providing an outlook for the current year. However, thanks to its comprehensive product portfolio, its good market position and the efficiency measures introduced and already implemented in production, the Group believes it is in a good position to maintain turnover and profitability in the event of a normalization of the situation.

 

Consolidated Income Statement

 

 

 

in 1000 CHF

2020

2019

Change

 

 

 

in %

Net turnover

261'419

281'383

-3.6

Material and goods

-120'637

-132'066

 

Personnel costs

-61'224

-64'063

 

Other operating costs

-49'402

-55'682

 

Other revenues

3'085

1'706

 

Other expenditures (incl. restructurings)

-2'075

-1'689

 

Operating results before depreciation and amortisation (EBITDA)

31'166

29'589

3.3

EBITDA in % of net turnover

11.9%

10.5%

 

Depreciation

-11'691

-11'961

 

Operating result (EBIT)

19'475

17'628

3.9

EBIT in % of net turnover

7.4%

6.3%

 

Financial results

-5'776

-4'259

 

Extraordinary / non-recurring expenses

0

-752

 

Result before taxes (EBT)

13'699

12'617

40.2

EBT in % of net turnover

5.2%

4.5%

 

Taxes

-1'922

296

 

Net income

11'777

12'913

32.9

Net income in % of net turnover

4.5%

4.6%

 

 

 

Consolidated Balance Sheet
in 1000 CHF

31 Dec 2020

in %

31 Dec 2019

in %

Change

in %

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Cash and cash equivalents

34'486

 

13'784

 

 

 

Other current assets

105'282

 

123'158

 

 

 

Current assets

139'768

56.9

136'942

54.7

2'826

2.1

Financial assets

2'073

 

2'273

 

 

 

Tangible fixed and intangible assets

103'766

 

111'049

 

 

 

Non-current assets

105'839

43.1

113'322

45.3

-7'483

-6.6

 

 

 

 

 

 

 

Total assets

245'607

100.0

250'264

100.0

-4'657

-1.9

 

 

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

Financial liabilities

91'965

 

97'757

 

 

 

Other current liabilities

30'142

 

28'434

 

 

 

Other non-current liabilities

10'514

 

11'519

 

 

 

Total liabilities

132'621

54.0

137'710

55.0

-5'089

-3.7

Shareholder loan

18'400

7.5

30'000

12.0

-11'600

-38.7

Share capital

76'394

 

76'394

 

 

 

Capital reserves

14'062

 

14'062

 

 

 

Retained earnings (incl. currency translation differences)

4'130

 

-7'902

 

 

 

Total equity

94'586

38.5

82'554

33.0

12'032

14.6

 

 

 

 

 

 

 

Total equity and liabilities

245'607

100.0

250'264

100.0

-4'657

-1.9


 

Contact
Peter Schmitter, CFO Bauwerk Group
Email: peter.schmitter@bauwerk-group.com, phone: +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 8.2 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. Administrative headquarters of the Group are located in St. Margrethen, Switzerland. The production locations are currently concentrated in St. Margrethen and Kietaviškės, Lithuania and Durdevac/Croatia. During the financial year 2020, the Bauwerk Group generated a net turnover of CHF 261 million and employed around 1,600 people.

 

Legal Information

The economic projections and predictions contained in this information relate to future facts. Such projections and predictions are subject to risks, uncertainties and changes which cannot be foreseen and which are beyond the control of Bauwerk Group. Bauwerk Group is therefore not in a position to make any representations as to the accuracy of economic projections and predictions or their impact on the financial situation of Bauwerk Group or the market in the securities of Bauwerk Group.

THIS INFORMATION DOES NOT CONSTITUTE AN ADVICE ON INVESTMENT NOR A RECOMMENDATION OR INVITATION FOR PURCHASING, HOLDING OR SELLING ANY SECURITIES AND IT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES. IT IS NOT INTENDED FOR PERSONS SUBJECT TO LEGISLATION THAT PROHIBITS ITS DISTRIBUTION OR MAKES ITS DISTRIBUTION CONTINGENT UPON AN APPROVAL AND IT IS NOT BEING ISSUED IN COUNTRIES WHERE THE PUBLIC DISSEMINATION OF THE INFORMATION CONTAINED HEREIN MAY BE RESTRICTED OR PROHIBITED BY LAW. IN PARTICULAR, THIS INFORMATION IS NOT BEING ISSUED IN THE UNITED STATES OF AMERICA AND SHOULD NOT BE DISTRIBUTED TO U.S. PERSONS OR PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. ANY NON-COMPLIANCE WITH SUCH RESTRICTIONS MAY RESULT IN AN INFRINGEMENT OF U.S. SECURITIES LAWS. SECURITIES OF BAUWERK GROUP AG ("COMPANIES") ARE NOT BEING PUBLICLY OFFERED OUTSIDE OF SWITZERLAND. IN PARTICULAR, THE SECURITIES OF THE COMPANIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO OR FOR THE ACCOUNT OF U.S. PERSONS EXCEPT IN AN "OFFSHORE TRANSACTION" IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT. THIS DOCUMENT DOES NOT CONSTITUTE A PROSPECTUS ACCORDING TO ART. 652A OR ART. 1156 OF THE SWISS CODE OF OBLIGATIONS OR ART. 27 ET SEQ. OF THE SIX SWISS EXCHANGE LISTING RULES.

This document is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "Relevant Persons"). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this information or any of its contents.

 


Additional features:


File: BAUWERK GROUP: Good results due to efficiency and cost measures

End of ad hoc announcement

Language:

English

Company:

Bauwerk Group AG

Neudorfstrasse 49

9430 St. Margrethen

Switzerland

Phone:

+41 71 7477474

Fax:

+41 71 7477423

E-mail:

info@bauwerk-group.com

Internet:

www.bauwerk-group.com

ISIN:

CH0410370016

Listed:

SIX Swiss Exchange

EQS News ID:

1183065


 

End of Announcement

EQS Group News Service

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