Marked sales growth – new records in all market regions
The Bossard Group enjoyed strong growth in 2017: Sales in fiscal year 2017 rose 13.1 percent to CHF 786.2 million. Double-digit growth rates in all three market regions (Europe, America, and Asia) fueled this solid performance. In Europe, where Bossard realized 57 % of its revenue, fourth quarter sales grew an impressive 16.1 percent. In America, the Group’s existing business contributed substantially to the 18.4 percent increase in sales. Bossard’s Asia business posted a sales increase of 12.8 percent, clearly benefiting from recent years’ investments in new capacities.
Last year’s performance again impressively confirms the Bossard Group’s growth strategy. Investments to develop new capacities and targeted acquisitions that consolidated our market positions in Europe and America were decisive factors in our surge in growth in 2017. All the acquisitions of the past few years were successfully integrated into the corporate structure, contributing significantly to the Bossard Group’s overall positive development.
Increasing growth dynamics in Europe
In Europe, the Bossard Group boosted sales by 10.8 percent in fiscal year 2017 to CHF 444.9 million (in local currency: +9.3 percent), with growth rates climbing steadily from one quarter to the next. Sales from October to December, for example, grew no less than 16.1 percent to CHF 110.3 million (in local currency: +13.9 percent) compared to the same period in 2016. This dynamic development was largely due to past years’ investments that consolidated our market position in various countries. It is important to note that all the countries contributed to this impressive performance, most of them posting double-digit growth rates.
Major strides in the America business
As in the previous year, Bossard made great strides in America: The 18.4 percent increase in sales to CHF 220.3 million is attributable to both organic growth as well as acquisitions. In particular, business with the largest US electric vehicle manufacturer continued to thrive, with the company launching production of a new model in the third quarter. This expansion in production will fuel further growth for the Bossard Group in 2018. Business with a major customer in the agricultural technology sector likewise added to our solid performance. Finally, Arnold Industries, which we acquired in September 2016, also contributed to the growth in sales. The reduced momentum in the America business in the second half of 2017 was due to two factors: First, our business with the above-mentioned US electric vehicle manufacturer faced a steep comparative baseline from the same period in 2016; and second, the consolidation effect from the acquisition of Arnold Industries was lower in the second half of the year.
Organic growth in Asia
In Asia, too, the Bossard Group benefited from past development efforts that substantially expanded capacities in China, Thailand, South Korea, and Malaysia. This increased presence in the industrial zones in Asia laid the critical groundwork for increasing sales in this market region by 12.8 percent to CHF 121.0 million (in local currency: +12.3 percent). In fact, Bossard posted double-digit sales growth in nearly all countries – particularly in China, our most important market in Asia.
Bossard will release the detailed year-end financial statements and the annual report 2017 at the media and analyst conference on March 7, 2018.