Sales financial year and fourth quarter 2020January 14, 2021 - ad hoc announcement
Gratifying closing of a highly challenging year
In a year of tough challenges caused by the COVID-19 pandemic, the Bossard Group posted sales of CHF 812.8 million in financial year 2020 (previous year: CHF 876.2 million). In currency-adjusted terms, this reflects a decrease of 3.3 percent. In Swiss francs, sales dropped by 7.2 percent as a result of the stronger Swiss currency. After waning sales figures in the first nine months, the fourth quarter proved to be robust across all regions. Sales in the last three months totaled CHF 212.8 million, a plus of 6.0 percent in local currency over the comparison period (in CHF: +2.9 percent). These figures bode well for business development ahead.
With sales of CHF 812.8 million for financial year 2020, a year marked by many challenges ended above expectations. Sales fell by 7.2 percent, but in local currency the decrease was only 3.3 percent. The fourth quarter was particularly positive: “The recovery we began to observe in the third quarter materialized starting in October, enabling us to close out the fourth quarter in all three market regions with positive growth compared to the previous year. In December, sales were particularly strong and well above our forecast,” stated Daniel Bossard, CEO of the Bossard Group. After currency adjustment, sales in the fourth quarter rose by 6.0 percent (in CHF: +2.9 percent) to CHF 212.8 million. Developments over the course of the year highlighted the resilience of the Bossard Group in a volatile and adverse market environment, largely thanks to its widely diversified customer base in the various industrial sectors.
Significant recovery – strong Swiss franc weighs down result
In Europe, sales in 2020 fell by 8.2 percent to CHF 466.2 million. The appreciation of the Swiss franc had a negative effect on the result; the drop was only 5.6 percent in local currency. Increasingly robust demand in the fourth quarter was clearly evident in Europe as well. Sales in local currency rose by 2.4 percent compared to the 8.9 percent drop in the third quarter. Adjusted for acquisitions, annual sales amounted to CHF 454.7 million. In mid- 2019, the Bossard Group had acquired Boysen, which operates in the aerospace industry.
In America, Bossard posted sales of CHF 201.2 million, a drop of 7.9 percent compared to the prior year. The weak US dollar also had an impact on the result in Swiss francs in this market region; in local currency sales fell by only 2.5 percent. The recovery in demand in America in the second half of 2020 is reflected particularly in the figures for the fourth quarter: Sales totaled CHF 53.4 million, an increase of 9.9 percent in local currency (in CHF: +4.3 percent).
In financial year 2020, Asia posted sales of CHF 145.4 million, an increase over the previous year of 3.2 percent in local currency (in CHF: -3,1 percent). In China, the largest market in Asia, the impact of the pandemic was most evident in the first quarter of 2020. Once restrictions were relaxed, the economy in the entire Asian region began to recover in the second quarter. With a double-digit sales increase of 11.9 percent in local currency (in CHF: +6.5 percent), the fourth quarter in Asia proved to be very positive as sales reached CHF 42.4 million.
“The worldwide lockdown in March of 2020 caused parts of the world economy to slump, as reflected in the figures from the first half of the year. In contrast to the services sector, the industrial sector was hit less hard by the second COVID-19 wave. This is reflected in sales for the second half of the year,” explained Daniel Bossard.
Bossard will present the detailed financial statements and the annual report 2020 at the media and analyst conference on March 3, 2021.