April 10, 2017
Strong growth momentum across all market regions
The Bossard Group has made a strong start into the 2017 fiscal year: First quarter sales grew by 16.1 percent to CHF 197.9 million (+16.8 percent in local currency). Bossard experienced solid organic growth, achieving an increase of 10.3 percent even without acquisitions. All market regions contributed to this favorable development. The most striking growth rates were realized in America, where the cooperation with the largest US electric vehicle manufacturer continued to bear fruit. The growth momentum for the Bossard Group also intensified in Europe, which is reflected in the profit performance of the Group.
The positive business trend that Bossard observed in the second half of 2016 persisted – particularly in Europe where the Group generates approximately 58 percent of its total revenue. Sales in this market region rose by 10.2 percent to CHF 114.2 million, a plus of 11.7 percent in local currency. With this performance, Bossard achieved one of the best quarterly results in recent years. Sales growth in Europe varied from country to country, but was evident in all markets. This is also true for Switzerland, where weak demand had persisted after the appreciation of the Swiss franc in early 2015.
Marked growth in America
Bossard saw its highest growth in America: Sales rose by 29.9 percent to CHF 56.9 million (+28.4 percent in local currency). These figures include the acquisition of the US company Arnold Industries, which was consolidated from the fourth quarter of 2016. This acquisition solidified the Bossard Group’s presence in the Northeast of the USA. However, the growth in this market region was strong even without this acquisition. The cooperation with thelargest US electric vehicle manufacturer, which is continually increasing its production volumes, is reflected in the substantially higher sales. Excluding the acquisition, growth in America was 15.5 percent. This development benefited additionally from the modest growth – the first in several quarters – with Bossard’s second major US customer, which does business in the agricultural technology sector.
Organic growth in the Asian markets
Business growth in Asia also attested to the Bossard strategy of the past several years. The development efforts directed at sustainability resulted in a sales increase of 16.5 percent to CHF 26.8 million in the first quarter 2017. This growth stems in large part from the investments in modern capacities made in various countries over recent years. The Bossard Group posted growth across all sales regions in Asia, including the Chinese market.
CEO David Dean is encouraged by the results of the first quarter of 2017. “The high growth rates in all market regions confirm our investment and acquisition decisions of recent years. Year after year, we have proven that we are able not only to grow, but to grow profitably. We will continue to be guided by this principle also in the future.” Bossard believes the outlook for the rest of 2017 to be positive. After the successful start into 2017 fiscal year, we are targeting sales from CHF 750 to 760 million, compared to CHF 695 million in the previous year.