Media

Press information 2020

November 26, 2020

Carlo Gavazzi half year results: Stable EBIT despite difficult market conditions

 

  • Operating revenue in local currency decreases by 3.7%, reaching CHF 69.3 million (-8.6% in Swiss Francs vs. 1st half 2019/20)
  • 5.7% sales growth in Asia-Pacific
  • EBIT stable at CHF 5.3 million
  • Group net income of CHF 3.1 million (previous year: CHF 3.3 million; -6.1%)
  • Solid equity ratio of 67.7%

 

Steinhausen, November 26, 2020 – During the first half of the 2020/21 financial year, the overall business performance of Carlo Gavazzi was constrained by the worldwide spread of the coronavirus pandemic (Covid-19) and its negative consequences for the global economy. Additionally, the strengthening of the Swiss Franc had an impact on revenues and net income when comparing the period of April to September 2020 to the same period in 2019. The rapid transmission of the coronavirus combined with extensive government-imposed restrictions on industrial production and global trade in goods lead to major challenges particularly in the first two months of the half-year.

The Group’s operating revenue in local currency decreased by 3.7% and bookings were down by 4.2%. In Swiss Francs, operating revenue decreased by 8.6% to CHF 69.3 million (CHF 75.8 million in the first semester of the 2019/20 business year). Sales in local currency decreased by 4.0% in Europe, by 9.3% in the Americas and increased by 5.7% in Asia-Pacific. Bookings in Swiss Francs decreased by 9.2% to CHF 68.8 million (CHF 75.8 million in 2019/20), resulting in a book-to-bill ratio of just under 1.0 at September 30, 2020.

Gross profit decreased by CHF 4.1 million to CHF 36.3 million (CHF 40.4 million in 2019/20) resulting in a gross margin of 52.4 % (53.3 % in 2019/20). The difficult global situation made it necessary to take immediate action. Carlo Gavazzi reacted early and managed to reduce costs across the organization. Operating expenses decreased by CHF 4.7 million from CHF 35.1 million in the previous first half year to CHF 30.4 million with investment in the development of the new ERP system continuing.

As a result, operating profit (EBIT) was constant at CHF 5.3 million despite substantially lower revenue than in the first half of last year. Group net income decreased by CHF 0.2 million (-6.1 %) to CHF 3.1 million (CHF 3.3 million in 2019/20).

At September 30, 2020, shareholders‘ equity amounted to CHF 93.8 million, giving an equity ratio of 67.7%.

 

Recovery in Asia-Pacific

In Europe, sales were 4.0% below the same period of last year. Sales were heavily impacted by Covid-19 in Central and Southern European countries. The decrease was partially offset by development in Nordic European countries, thanks to strong sales in energy efficiency and building automation markets.

Sales in the Americas decreased by 9.3%, mainly due to contraction in OEMs and distribution activities in the US market, also impacted by the Covid-19 pandemic and the ongoing trade dispute with China.

In Asia-Pacific, sales increased by 5.7%, mainly due to recovery in building and industrial automation markets and distribution channels in China.

The geographical share of revenue outside Europe was 34.3%, with sales in the Americas and Asia-Pacific accounting for 18.3% and 16.0%, respectively.

 

Challenging plastic machinery market – strong demand for energy management products

Sales in priority markets decreased 4.8% versus the same period of last year. Sales were mainly affected by conditions in the industrial automation markets, particularly in plastic machinery. The decrease was partially offset by sales in energy markets which grew by 22%. Sensors product sales were 7.2% below the same period of last year mainly due to contraction in manufacturing activity globally, heavily impacted by Covid-19 pandemic. Sales in capacitive sensors increased by 4.5% compared to the previous year, also thanks to steady growth in HVAC (heating, ventilation and air-conditioning) applications.

Controls product sales increased by 1.9% mainly due to a robust 19.7% increase in energy products, particularly driven by ongoing strong demand for energy management and energy efficiency solutions. The growth of sales in energy efficiency products cushioned a decrease of sales in fieldbuses and monitoring relays.

Sales of Switches products decreased by 6.7% compared to the previous year. Sales in solid state relays and motor controls decreased respectively by 3.8% and 0.4% mainly due to weakened conditions of OEMs in industrial automation markets, particularly in plastic machinery.

 

Outlook

The global economy is characterized by major uncertainties as a consequence of the Covid-19 pandemic. Possible new restrictions such as a further lockdown of factories or logistic centers would have an impact on the Group’s result. Current challenging economic conditions will also affect both industrial and building automation markets, however, the effect on our business is difficult to estimate.

Nevertheless, Carlo Gavazzi Group continues to focus on strengthening its sales organization, increasing the penetration of its product portfolio, broadening market reach with new product releases also towards the internet of things, and to adapt its supply chain to maintain business continuity.

Consolidated key figures
(CHF million)

Income statement1. HY 2020/211. HY 2019/20%
Bookings 68.8 75.8 -9.2
Operating revenue 69.3 75.8 -8.6
EBITDA 8.3 8.5 -2.4
EBIT 5.3 5.3 -0.0
Net income 3.1
3.3 -6.1
Cash flow 6.1
6.5 -6.2
 
Balance sheet30.9.202031.3.2020 
Shareholders’ equity 93.8
90.3 +3.9
Net working capital 27.9
28.4 -1.8
Net cash position 49.7 46.0 +8.0

Interim Report

The complete interim report can be downloaded from
http://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 29, 2020

Management Change

Steinhausen, July 29, 2020 – Lorenzo Trezzini (Group CFO of Carlo Gavazzi Holding AG since March 1, 2020) has decided to leave the company to pursue his career outside of the group.

His successor will be announced in due course. In the meantime, Anthony Goldstein (long-standing former Group CFO) will assume the role of Group CFO ad interim to assure a smooth transition.

The Board of Directors of Carlo Gavazzi wishes Mr. Trezzini all the best and thanks Mr. Goldstein for his valuable support and continued commitment to the company.

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.Counselors
Phone +41 43 344 42 42
E-Mail rolf.schlaepfer@konsulenten.ch

July 28, 2020

Carlo Gavazzi Shareholders’ Meeting – All agenda points approved

Steinhausen, July 28, 2020 – 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.

In addition, the shareholders 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 2019/20 business year.

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

Based on the Federal Council's ordinance of June 19, 2020, the shareholders exercised their rights exclusively through the independent proxy instead of attending the AGM in person.

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.Counselors
Phone +41 43 344 42 42
E-Mail rolf.schlaepfer@konsulenten.ch

July 1, 2020

Carlo Gavazzi issues Invitation to the Annual General Meeting


Steinhausen, June 26, 2020 – The electronic group Carlo Gavazzi Holding AG has issued the invitation and the agenda for the Annual General Meeting 2020, to take place on Tuesday, July 28, 2020, 10:30 a.m., at the premises of Carlo Gavazzi Holding AG, Sumpfstrasse 3, 6312 Steinhausen.

Based on the Federal Council's ordinance of June 19, 2020, the Board of Directors has decided that it will not be possible for shareholders to attend this year's Annual General Meeting in person. Instead, shareholders will be able to exercise their rights exclusively through the independent proxy.

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

The annual report 2019/20 has already been published on the occasion of the full year results communication on June 24, 2020. 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 24, 2020

Carlo Gavazzi reports positive net income despite strong Swiss Franc, IT investments and Covid-19



  • Operating revenue -0.5% in local currency / -4.2% in CHF respectively, reaching CHF 148.5 million (2018/19: CHF 155.0 million)
  • Bookings increase 2.5%; solid book-to-bill ratio of 1.03
  • Gross margin increases to 53.6% (2018/19: 53.4%; +0.2 ppts)
  • Operating profit (EBIT) decreases to CHF 10.8 million, (2018/19: CHF 15.2 million / -28.9%) due to strong CHF, Covid-19 and development of ERP system 
  • Net income of CHF 6.1 million (CHF 10.7 million in 2018/19 / -43.0%)
  • Board of Directors proposes to refrain from distributing dividend

 

Steinhausen, June 24, 2020 - In the 2019/20 business year, the overall business performance of Carlo Gavazzi was solid, however, the strengthening of the Swiss Franc, the ongoing investments in a new ERP system and Covid-19 had an impact on the full-year result when comparing to the same period in 2018/19.

At the end of the business year (April 1, 2019 to March 31, 2020), Carlo Gavazzi was affected by the coronavirus pandemic (Covid-19). The Group has a major presence in China and Italy, countries affected by strict quarantine regulations in the last two months of the financial year 2019/20. The factories in Kunshan (China) and Belluno (Italy), were able to maintain production for the most part. On the other hand, sales and distribution in China and to some extent in other regions were experiencing bottlenecks. Many country organizations were in short-time working mode. In addition, several of the Group’s long-standing customers were affected by interrupted supply chains, resulting in delays or reduction in orders and deliveries.

The Group’s operating revenue decreased by 0.5% while bookings increased by 2.5% in local currency, on the back of solid sales in key markets and ongoing launches of new products. Operating revenue in Swiss Francs decreased by 4.2% to CHF 148.5 million (CHF 155.0 million in 2018/19). Bookings decreased by 1.4% to CHF 153.0 million (CHF 155.2 million in 2018/19), resulting in a book-to-bill ratio of 1.03 at March 31, 2020.

Investments in R&D, Marketing and Sales and new ERP-System
Gross profit decreased by CHF 3.2 million to CHF 79.6 million (CHF 82.8 million in 2018/19) while the gross margin increased by 0.2 percentage points to 53.6%. Operating expenses were up by CHF 0.7 million from CHF 68.1 million in the previous year to CHF 68.8 million with continuing investments in R&D and Marketing and Sales expenditure. In addition, the Group invested CHF 1.5 million during the year in the development of a new ERP system. Operating profit (EBIT) decreased to CHF 10.8 million, compared to CHF 15.2 million in the previous year (-28.9% versus 2018/19). The EBIT margin decreased to 7.3% compared to 9.8% in the previous year. After considering financial expense of CHF 0.7 million and income taxes of CHF 4.0 million, the Group net income amounted to CHF 6.1 million (CHF 10.7 million in 2018/19), a decrease of 43.0%. At March 31, 2020, shareholders’ equity stood at CHF 90.3 million (CHF 97.5 million in 2018/19), giving an equity ratio of 68.7% (2019: 71.8%) with a net cash position of CHF 46.0 million (2019: CHF 47.8 million). 

Carlo Gavazzi stands by its traditional policy of distributing a great part of net income to shareholders. However, considering the fact that the Company has experienced two factory closures  and short-time working almost worldwide, and in view of the anticipated volatility and challenges ahead, the Board of Directors will propose to the Annual Shareholders’ Meeting to refrain from distributing a dividend this year in order to safeguard all stakeholders’ interests.

Strong European markets
Sales in local currency grew in Europe but decreased in the Americas and Asia-Pacific.
In Europe, sales were 2.3% above the previous year due to good performance in building automation markets in the whole area, while industrial automation markets suffered from a general slowdown.
Sales in the Americas decreased by 5.3% compared to the previous year due to a contraction in the manufacturing sector also as a result of increasing trade barriers which impacted the entire value chain.
Sales in Asia-Pacific decreased by 6.7% compared to the previous year as both the industrial and building automation markets were affected by weak business conditions resulting from the US-China trade war and, towards the year-end, the Covid-19 pandemic.
Sales outside Europe represented 33.5% of total revenue, with the Americas and Asia-Pacific accounting for 20.0% and 13.5%, respectively.

Controls and Sensors with higher sales
Controls performed above the previous year, with a very positive contribution coming from energy management products, which grew by 14.8%, driven by the steady demand for energy analyzers and the UWP 3.0 gateway and controller. UWP 3.0 provides users with a wide range of monitoring and automation functions to improve energy efficiency in building automation and car parking guidance systems.
Sensors performed above the previous year due to the positive contribution of capacitive sensors, which grew by 5.5%. The CA18 and CA30 series represent the ideal solution for reliable detection in harsh environments in industrial markets. When integrated into IO-Link communication, they ensure high performance and maximum flexibility in applications where sensor performance needs to be constantly and accurately monitored and logged.

Switches decreased by more than 6% compared to the previous year. The weakening conditions in global industrial markets affected overall sales in solid state relays. Sales of motor controllers increased by 1.6% mainly driven by the RSGD series and the promising development in HDMS. The RSGD series provides customers with a compact self-learning solution designed for pumps and compressors in the building automation markets. HMDS is an innovative motor starter used in HVAC devices such as heat pumps and submersible pumps. Its unique design and control algorithm make the start capacitor superfluous and reduce motor starting currents.
Sales of products in priority markets performed better than overall sales, with an increase of more than 19% in Smart Building and Energy markets and more than 8% in the HVAC market. 

Strategy
The Group growth strategy is based on developing new and enhanced products and improving market penetration and development across different geographic areas. 
Furthermore, the Group is focused on continuous improvement of its business model, also by embracing new technology, software and tools to become more agile and responsive in a complex market landscape.
The main initiatives concern reinforcing production and R&D activities to improve delivery and time-to-market, the deployment of dedicated business development programs outside Europe, the enhancement of manufacturing sites and the R&D team in Asia-Pacific to better fulfill local customer requirements in terms of specifications and prices. 

Outlook
The global economy continues to contract sharply due to the Covid-19 pandemic. Early in the emerging crisis, Carlo Gavazzi acted promptly to maintain its business continuity by modifying its operations and adapting its global footprint of manufacturing and warehouse facilities. Nonetheless, weak economic and market conditions are expected to persist in the short term further affecting the Group’s result in the coming months. 
Despite these expected challenges, Carlo Gavazzi continues to focus on strengthening its sales organizations and increasing the penetration of its product portfolio and developing a state-of-the art ERP system in order to take advantage of the opportunities which are likely to arise in various markets in the medium term.

Consolidated key figures (CHF million)


Income Statement2019/202018/19%
Bookings 153.0 155.2 -1.4
Operating revenue 148.5 155.0 -4.2
EBITDA 16.9 18.7 -9.6
EBIT 10.8 15.2 -28.9
EBIT margin 7.3% 9.8%  
Net income 6.1 10.7 -43.0
Cash flow 12.2 14.2 -14.1
Balance Sheet (as at 31 March)20202019 
Net working capital  28.4 35.7 -20.4
Shareholders' equity 90.3 97.5 -7.4
Total assets 131.6 135.8 -3.1
Equity ratio 68.7% 71.8%  


For some figures Carlo Gavazzi Group uses alternative performance measures (APMs) which are not defined in accordance with International Financial Reporting Standards (IFRS). The respective definitions can be found at Carlo Gavazzi Alternative performance measures.

The complete annual report 2019/20 can be downloaded from the website at: Carlo Gavazzi Annual Report 2019/20.

 

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

 

March 10, 2020

Carlo Gavazzi informs about the effects of coronavirus outbreak


Steinhausen March 10, 2020
– The Swiss automation group Carlo Gavazzi, like many other globally active companies, is affected by the spread of coronavirus (SARS-CoV-2). Carlo Gavazzi has a major presence in China and Italy, countries currently affected by strict quarantine regulations. The factories in Kunshan (China) and Belluno (Italy), have so far been able to maintain production for the most part. On the other hand, sales and distribution in China and to some extent in other regions are experiencing a bottleneck. In addition, a number of the Group’s long-standing customers are affected by interrupted supply chains, resulting in delays or reduction in orders. The Group confirms that the two months of February and March 2020 are affected by the coronavirus outbreak.

Also due to the strengthening of the Swiss Franc, the Group expects lower sales for the second half of the 2019/20 financial year ending on 31 March 2020 compared to the first half.

For the entire business year 2019/20, Carlo Gavazzi expects an operating revenue of around CHF 148 million (previous year CHF 155 million). We expect gross margin to be in line with the previous year. Net profit is expected to be in the region of CHF 5 million (previous year: CHF 10.7 million). The decrease in net profit is mainly due, as already announced, to the substantial investments in Marketing and Sales and a new ERP system, in addition to the current global situation.

Carlo Gavazzi will announce the detailed figures for the annual result on June 24, 2020.

 

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