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Press information 2018

November 22, 2018

Carlo Gavazzi - increase in revenue and net income in first half year

 

  • Operating revenue increases by 8.0% to CHF 76.0 million (previous year: CHF 70.4 million)
  • Growth across all regions and product lines – Switches up 10.7%
  • EBIT reaches CHF 6.5 million, (previous year: CHF 6.4 million; +1.6%)
  • Group net income grows 12.2% to CHF 4.6 million (previous year: CHF 4.1 million)
  • Equity ratio of 71.0% (previous year: 71.8%)

 

Steinhausen, November 22, 2018 – During the first half of the 2018/19 financial year, Carlo Gavazzi recorded a marked increase in revenue and net income. Sales were driven by improvements in all regions and main product lines with Switches achieving a double-digit growth rate.

In local currency, operating revenue grew by 5.0% and bookings by 4.7%. In Swiss Francs, operating revenue increased by 8.0% to CHF 76.0 million (CHF 70.4 million in the first semester of the 2017/18 business year). Sales grew by 4.8% in Europe, 9.9% in the Americas and 0.2% in Asia-Pacific. Bookings grew by 7.7% to CHF 78.7 million (CHF 73.1 million in 2017/18), resulting in a book-to-bill ratio of 1.04 at September 30, 2018.

Gross profit increased by CHF 2.8 million to CHF 40.8 million (CHF 38.0 million in 2017/18) while the gross margin decreased by 0.3 percentage points to 53.7% due to more aggressive sales efforts. Operating expenses went up by CHF 2.6 million from CHF 31.6 million in the previous first half year to CHF 34.2 million (+8.2%) owing to continuing increased investments in R&D, Marketing and Sales.

Operating profit (EBIT) reached CHF 6.5 million, compared to CHF 6.4 million (+1.6%) in the first half of last year.

Group net income increased by CHF 0.5 million (+12.2%) to CHF 4.6 million (CHF 4.1 million in 2017/18).

At September 30, 2018, shareholders' equity amounted to CHF 93.2 million, giving an equity ratio of 71.0%.

Growth across all regions
Revenue grew across all geographical regions in local currency.
In Europe, sales were 4.8% above the same period of last year. Effective business development spanned from Nordic to Central and Southern European countries, which leveraged on the positive business cycle.
Sales in the Americas grew by 9.9%, confirming the effectiveness of on-going business development activities in the area.
In Asia-Pacific, sales increased by only 0.2%, mainly due some postponement of project-based business in building automation in Singapore and other South East Asian markets.

As in the past years, the geographical share of revenue outside Europe continued to expand to 35.5%, with sales in the Americas and Asia-Pacific accounting for 20.1% and 15.4%, respectively.

Solid state relays drive sales of Switches
Sales in priority markets increased 5.5% versus the same period of last year. Among the selected priority markets, Heating, Ventilation & Air Conditioning (HVAC), Plastics and Energy grew by 14.3%, 10.8% and 7.9% respectively.

Sales of Sensors were 2.3% above the same period of last year mainly due to an increase in capacitive and level sensors sales, thanks to on-going business development in industrial applications globally.

Controls product sales were up 3.9% mainly due to a robust 14.9% increase in energy products, which was driven by development in energy management applications and energy efficiency programs across building automation markets, such as Energy and HVAC.

Sales of Switches products grew by 10.7% compared to the previous year. Solid state relays sales increased 16.3%, also thanks to the development in both industrial and building automation markets. Motor controls sales were 7.7% above the previous year also due to further business development in the applications for HVAC market.

Outlook
The current economic environment is characterized on the one hand by higher volatility and greater political imponderables and on the other by continued global economic growth. On the whole, the factors of uncertainty tend to increase. Nevertheless, Carlo Gavazzi Group continues to see growth opportunities in important markets, particularly outside Europe, and further strengthens its product portfolio through investments in R&D and efforts in Marketing and Sales.

Consolidated key figures
(CHF million)

Income statement1. HY 2018/191. HY 2017/18%
Bookings 78.7 73.1 +7.7
Operating revenue 76.0 70.4 +8.0
EBITDA 8.4 8.2
+2.4
EBIT 6.5 6.4
+1.6
Net income 4.6 4.1
+12.2
Cash flow 6.5 5.8
+12.1
Additions to fixed assets 1.9 1.0 +90.0
 
Balance sheet30.9.201831.3.2018 
Net working capital 37.5 35.7 +5.0
Net cash position 40.6 50.7 -19.9

Interim Report
The complete interim report can be downloaded from https://www.carlogavazzi.com/en/investors/interim-report.html

About Carlo Gavazzi:
Carlo Gavazzi is a publicly quoted international electronics group (SIX: GAV) with activities in the design and marketing of electronic control components for factory and building automation.
Please visit our website: www.carlogavazzi.com

For further information please contact:
Rolf Schläpfer
Hirzel.Neef.Schmid.Konsulenten
Phone +41 43 344 42 42
E-Mail rolf.schlaepfer@konsulenten.ch

July 31, 2018

Carlo Gavazzi shareholders’ meeting – All agenda points approved

Steinhausen, July 31, 2018 – At today’s annual shareholders’ meeting of Carlo Gavazzi Holding AG the Directors Valeria Gavazzi, Federico Foglia and Stefano Premoli Trovati were re-elected as members of the Board of Directors for another period of one year. Daniel Hirschi was confirmed as a member of the Board of Directors as representative of the holders of bearer shares. As proposed, Valeria Gavazzi was confirmed as Chairman.

The shareholders also approved the distribution of an ordinary dividend of CHF 12.00 per bearer share and CHF 2.40 per registered share.

In addition, they approved the board compensation for the preceding term of office, the fixed compensation for the next business year for executive management and their variable compensation for the 2017/18 business year.

All other items of the agenda were also approved by the shareholders.

Carlo Gavazzi shares will be traded ex dividend from August 3, 2018. The dividend will be paid out with value August 7, 2018.


About Carlo Gavazzi:
Carlo Gavazzi is a publicly listed international electronics group (SIX: GAV) with activities in the design and marketing of electronic control components for factory and building automation.

Please visit our website: www.carlogavazzi.com

For further information please contact:
Rolf Schläpfer
Hirzel.Neef.Schmid.Konsulenten
Phone +41 43 344 42 42
E-Mail rolf.schlaepfer@konsulenten.ch

 

July 6, 2018

Carlo Gavazzi issues Invitation to the Annual General Meeting

Steinhausen, July 6, 2018 – The electronic group Carlo Gavazzi Holding AG has issued the invitation and the agenda for the Annual General Meeting 2018, to take place on Tuesday, July 31, 2018, 10:30 a.m., at the Parkhotel in Zug.

The invitation and agenda are available at:
http://www.carlogavazzi.com/en/investors/financial-calendar.html

The annual report 2017/18 has already been published on the occasion of the full year results communication on June 28, 2018. It is available at:
http://www.carlogavazzi.com/en/investors/annual-report.html

Documents can also be ordered at the following address:
Carlo Gavazzi Holding AG
rolf.schlaepfer@konsulenten.ch
Phone: +41 43 344 42 42

 

June 28, 2018

Carlo Gavazzi in 2017/18: Sound revenue growth – higher investments in R&D, Marketing and Sales



  • Operating revenue increases to CHF 146.9 million (previous year: CHF 135.4 million); +6.1% in local currency (+8.5% in CHF)
  • Bookings increase strongly to CHF 153.6 (CHF 137.7 million in 2016/17; +11.5% in CHF)
  • EBIT reaches CHF 13.9 million (CHF 16.7 million in 2016/17)
  • Net income reaches CHF 8.4 million (CHF 13.4 million in 2016/17)
  • Consistently high equity ratio of 72.5% (2017: 73.6%)
  • Dividend of CHF 12.00 per bearer share proposed to AG

Steinhausen, June 28, 2018 – In the 2017/18 business year, Carlo Gavazzi recorded a sound growth in revenue, driven by sales improvements in all regions and main product lines. Due to a one-off effect last year and increased investments in R&D, sales and marketing, EBIT and net income were below the 2016/2017 business year.

Operating revenue increased by 6.1% and bookings by 9.2% in local currency, on the back of solid sales in key markets and the ongoing launch of new products. Operating revenue in Swiss Francs increased by 8.5% to CHF 146.9 million (CHF 135.4 million in 2016/17). Bookings grew by 11.5% to CHF 153.6 million (CHF 137.7million in 2016/17), resulting in a book-to-bill ratio of 1.05 at March 31, 2018.

Gross profit increased by CHF 4.7 million to CHF 79.4 million (CHF 74.7 million in 2016/17) while the gross margin decreased by 1 percentage point to 54.1% due to more aggressive sales efforts in the market. Operating expenses were up by CHF 5.5 million from CHF 60.1 million in the previous year to CHF 65.6 million due to increased investments in R&D and expanded sales and marketing expenditure.

Operating profit (EBIT) reached CHF 13.9 million, compared to CHF 16.7 million (-16.8%) in the previous year. The reason for this difference was the one-off effect last year of the non-operational arbitration outcome with net proceeds of CHF 2.4 million plus the additional investments in R&D and sales and marketing stated above.

Group net income decreased by CHF 5.0 million to CHF 8.4 million (CHF 13.4 million in 2016/17), mainly due to a swing in the exchange difference of CHF 1.2 million with an exchange loss of CHF 1.0 million this year compared to an exchange gain of CHF 0.2 million in the previous year in addition to the effects described above.

At March 31, 2018, shareholders’ equity stood at CHF 99.3million (CHF 95.2 million in 2016/17), giving an equity ratio of 72.5% (2017: 73.6%) with a net cash position of CHF 50.7 million. Having assessed the results, the Board of Directors will propose to the Annual Shareholders’ Meeting that the Company pays a dividend of CHF 12.00 per bearer share and CHF 2.40 per registered share for the reporting period, corresponding to a pay-out ratio of 101.6%.

Share of sales outside Europe continues to expand
Sales grew across all three geographical regions in local currency.
In Europe, sales were 4.3% above the previous year due to good performance in industrial automation in the whole area, and further strengthening of activities in energy efficiency in the Central and Southern European countries.

Sales in Asia-Pacific increased by 18.7% compared to the previous year mainly due to business development programs in China, particularly in industrial automation.

In North America, sales grew by 3.2% compared to the previous year thanks to the dedicated programs deployed with distributors in industrial automation markets.

The geographical distribution of revenue continues to broaden, with sales outside Europe expanding to 35.1%, while North America and Asia-Pacific account for 19.8% and 15.3%, respectively.

Revenue growth in all product categories

To strengthen its position world-wide, the Group increased investments in its product portfolio with R&D spending growing by 18% in local currency.

Controls performed above the previous year, due to the contribution from energy management products and monitoring relays, which grew by 7.4% and 4.9%, respectively. This positive momentum is mainly due to the continuous increase in demand for energy monitoring products, such as the EM340 energy analyzers, and the monitoring relays in conventional energy and heating, ventilation and air conditioning (HVAC) markets. Fieldbuses grew by 5.1% compared to the previous year mainly due to development of sales based on parking guidance projects.

Sensors performed above the previous year. A positive contribution came from both photoelectric sensors and capacitive sensors, which increased by more than 8% versus the previous year. Regarding photoelectric sensors, the growth was mainly due to the PD30 family of products which improved penetration in industrial automation markets. The growth in capacitive sensors was mainly due to the CA30 series which provides an ideal solution in industrial markets for reliable detection in harsh environments subject to high temperature.

Switches grew by more than 6% compared to the previous year, driven by strong sales of the RG platform, which includes compact and easy-to-use solid-state solutions for power control designed for the plastics, food & beverages and HVAC markets.

Sales of products in priority markets performed better than overall sales growth, with an increase of more than 12% and 10% in the agriculture and plastics markets.

Initiatives to improve the business model

The continuous introduction of new and enhanced products is a key element in the business development towards new and existing markets and geographies. Furthermore, the Company is undertaking several initiatives to improve its business model. Concerning the manufacturing footprint, the production of fieldbus products has been transferred from the plant in Malta to the one in Belluno, Italy. Through this move, the Malta operations will benefit from an increase in production capacity for the switches products in order to enable an improvement in delivery performance, while at the Belluno site the production of fieldbuses will be better able to liaise with the local product management and R&D teams in order to help improve time-to-market.

Outlook

The return of trade barriers has made the global economy more volatile and political uncertainties are clearly rising. Nonetheless, the outlook for global industrial manufacturing appears to remain positive. As in the past few years, the Group experiences interesting growth opportunities in major markets, particularly outside Europe, and continues to strengthen its product portfolio through substantial investments in R&D, sales and marketing.

Carlo Gavazzi keeps focusing on geographical coverage by improving the effectiveness of the direct sales organization and by further developing the network of distributors and agents.

The complete Annual Report 2017/18 of the Carlo Gavazzi Group is available on: http://www.carlogavazzi.com/en/investors/annual-report.html

Consolidated key figures (CHF million)

Income statement2017/182016/17%
Bookings 153.6 137.7 +11.5
Operating revenue 146.9 135.4 +8.5
EBITDA 17.4 20.0 -13.0
EBIT 13.9 16.7 -16.8
EBIT margin 9.5% 12.4%  
Net income 8.4 13.4 -37.3
Cash flow 11.9 16.7 -28.7
Balance sheet (as at 31 March)20182017 
Net working capital 33.3 31.5 +5.7
Shareholders' equity 99.3 95.2 +4.3
Total assets 136.9 129.3 +5.9
Equity as % of assets 72.5% 73.6%  

Pro forma comparison excluding arbitration income

Income statement2017/182016/17%
EBITDA 17.4 17.6 -1.1
EBIT 13.9 14.3 -2.8
Net income 8.4 11.0 -23.6
Cash flow 11.9 14.3 -16.8


About Carlo Gavazzi:
Carlo Gavazzi is a publicly listed international electronics group (SIX: GAV) with activities in the design and marketing of electronic control components for factory and building automation.


For further information please contact:
Rolf Schläpfer
Hirzel.Neef.Schmid.Konsulenten
Phone +41 43 344 42 42
E-Mail rolf.schlaepfer@konsulenten.ch