BUCHER INDUSTRIES AG
EQS Group-Ad-hoc: Bucher Industries AG / Key word(s): Half Year Results/Interim Report
Strong result in a dynamic environment
29-Jul-2021 / 06:01 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
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Ad hoc announcement
Niederweningen, 29. July 2021 | Ad hoc announcement pursuant to article 53 listing rules
Demand for Bucher Industries' products and services was strong in the first half of 2021. Order intake increased by 50%
compared to the prior-year period. Despite difficulties in the supply chain, in logistics and in personnel recruitment,
sales rose markedly, almost reaching the record level of 2019. The operating profit margin rose substantially.
Operating profit and profit for the period practically doubled.
Group
January - June Change in Full year
CHF million 2021 2020 % %1) %2) 2020
Order intake 1'722 1'153 49.3 50.3 48.3 2'838
Net sales 1'608 1'357 18.5 18.7 17.9 2'741
Order book 1'209 779 55.3 56.7 53.5 1'081
Operating profit (EBITDA) 221 135 63.3 287
as % of net sales 13.7% 10.0% 10.5%
Operating profit (EBIT) 179 94 89.9 204
as % of net sales 11.2% 7.0% 7.4%
Profit for the period 138 68 102.5 152
as % of net sales 8.6% 5.0% 5.5%
Earnings per share in CHF 13.40 6.71 99.7 14.71
Operating free cash flow -8 -25 67.6 313
Net cash/debt 329 78 324.4 404
Total assets 2'596 2'369 9.6 2'431
Equity 1'489 1'322 12.6 1'391
Equity ratio 57.3% 55.8% 57.2%
Return on equity (ROE) 15.8% 13.2% 10.9%
Net operating assets (NOA) average 1'079 1'208 -10.7 1'151
Return on net operating assets (RONOA) after tax 25.1% 11.6% 13.5%
Number of employees at closing date3) 13'404 12'412 8.0 6.8 12'598 1) Adjusted for currency effects 2) Adjusted for currency and acquisition effects 3) 13'428 employees (FTEs), of whom 24 on short-time work (June 2020: 12'811 employees, of whom 399 on short-time work)
The first half of 2021 was very dynamic for Bucher Industries. The recovery that had begun in mid-2020, especially in the agricultural machinery market, intensified and expanded to the other markets. Order intake rose substantially in all divisions. While all sites were operational, certain restrictions caused by COVID-19 concerning operational processes and international travel remained in place. The divisions had been facing difficulties in the supply chain and in logistics since the start of the year, but these intensified toward the end of the period, leading to delivery bottlenecks and longer delivery times in general. The divisions also found it increasingly difficult to recruit additional qualified employees, which in some instances prevented them from expanding capacities to the desired extent. Nevertheless, group sales rose markedly compared to the prior-year period, almost reaching the record level of 2019. The operating profit margin rose substantially, due to the high level of capacity utilisation but also as a result of optimisation measures implemented in the prior year and lower travel and marketing costs caused by COVID-19. Operating profit and profit for the period practically doubled.
Significant increase in return on invested capital The return on net operating assets (RONOA) was 25.1%, above the long-term target of 20% and therefore also significantly above the cost of capital of 8%. The high return is mainly attributable to the marked increase in the operating profit margin and the level of capital commitment, which remained low. The good operating performance and lower dividend payment had a positive effect on free cash flow and thus on net cash/debt. The main focus of internal investments has been on the construction projects of Kuhn Group in Russia, Bucher Municipal in the UK and Bucher Hydraulics in Germany. At the beginning of the reporting period, the Group invested further in external growth by acquiring Khor and Merk Process.
Kuhn Group
January - June Change in Full year
CHF million 2021 2020 % %1) %2) 2020
Order intake 608 427 42.4 48.1 46.8 1'290
Net sales 728 584 24.5 26.8 26.2 1'094
Order book 467 236 98.3 107.5 105.4 587
Operating profit (EBITDA) 108 69 58.1 125
as % of net sales 14.9% 11.7% 11.4%
Operating profit (EBIT) 91 51 77.4 91
as % of net sales 12.5% 8.8% 8.3%
Number of employees at closing date3) 5'800 5'158 12.4 11.0 5'194 1) Adjusted for currency effects 2) Adjusted for currency and acquisition effects 3) 5'803 employees (FTEs), of whom 3 on short-time work (June 2020: 5'213 employees, of whom 55 on short-time work)
Very dynamic markets, but challenges in production and the supply chain Kuhn Group experienced exceptionally strong demand for machines and service parts, which was driven by multiple factors: high prices for agricultural products, the government support programmes for farmers in the previous year as well as overall favourable weather conditions. This resulted in a substantial upturn in North America, particularly in the arable sector, following several difficult years. In Europe, market conditions were good in both the arable sector and in the dairy and livestock industry. In Brazil, agricultural producers remained extremely eager to invest thanks to record-high margins. In this dynamic environment, the division saw order intake rise by nearly half. At the same time, however, Kuhn Group also grappled with challenges in the supply chain and production. Compared to the prior-year period, sales still rose substantially and even surpassed the first half of 2019. The higher sales volume resulted in a substantially higher operating profit margin.
Bucher Municipal
January - June Change in Full year
CHF million 2021 2020 % %1) %2) 2020
Order intake 298 225 32.2 28.9 25.2 460
Net sales 256 215 19.0 15.8 12.2 462
Order book 204 165 23.6 20.3 17.3 157
Operating profit (EBITDA) 22 13 75.2 38
as % of net sales 8.6% 5.8% 8.1%
Operating profit (EBIT) 17 8 112.8 28
as % of net sales 6.5% 3.6% 6.0%
Number of employees at closing date3) 2'348 2'309 1.7 -0.8 2'327 1) Adjusted for currency effects 2) Adjusted for currency and acquisition effects 3) June 2020: 2'314 employees (FTEs), of whom 5 on short-time work
Recovery in sales and operating profit margin Demand for Bucher Municipal products was good. The division saw order intake rise markedly over the prior-year period, with this positive trend driven largely by truck-mounted sweepers and the new line of 'CityCat V20' compact sweepers. Orders for sewer cleaning vehicles also rose, which was partly attributable to the acquisition of the Australian company Spoutvac in autumn 2020. Bucher Municipal's production continued to be hampered by COVID-19 measures and problems in the supply chain. Procuring chassis, hydraulic components and batteries became increasingly difficult. Nevertheless, sales were up significantly over the hard-hit prior-year period and ended up at virtually the same high level as in 2019. Accordingly, the operating profit margin increased despite a difficult procurement environment.
Bucher Hydraulics
January - June Change in Full year
CHF million 2021 2020 % %1) 2020
Order intake 429 259 66.0 66.5 561
Net sales 338 268 26.3 26.8 536
Order book 225 100 124.2 124.9 134
Operating profit (EBITDA) 57 36 56.5 81
as % of net sales 16.8% 13.6% 15.1%
Operating profit (EBIT) 46 25 80.3 59
as % of net sales 13.5% 9.5% 11.0%
Number of employees at closing date2) 2'689 2'278 18.0 2'537 1) Adjusted for currency effects 2) 2'691 employees (FTEs), of whom 2 on short-time work (June 2020: 2'558 employees, of whom 280 on short-time work)
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