HUEGLI HOLDING AG Media Release 31 January 2018, 07.00 a.m.: Sales 2017
Past the trough thanks to positive sales dynamics
- Sales 2017 with CHF 384.0 million at previous year's level
- Positive currency effect since August 2017
- Temporary dent in cyclical key account business overcome
Sales 2017 | in million CHF | Change to previous year | |||
in CHF | organic | ||||
Food Service | 159.9 | +0.9% | -1.0% | ||
Customer Solutions | 139.0 | 0.0% | -0.9% | ||
Consumer Brands | 53.9 | -6.2% | -7.8% | ||
Food Ingredients | 30.8 | +3.6% | +3.3% | ||
Other | 0.4 | ||||
Group total | 384.0 | -0.3% | -1.7% | ||
Germany | 222.3 | -1.1% | -3.0% | ||
Switzerland/Western Europe | 129.6 | -0.4% | -0.1% | ||
Eastern Europe | 32.1 | +5.9% | +1.8% | ||
Group total | 384.0 | -0.3% | -1.7% | ||
Key account business with curbing effect, market trough bottomed out
The organic sales development in 2017 was substantially affected by temporarily lower sales to several key account customers that picked up again in the autumn of 2017. Quarterly sales in local currencies indicate the positive sales dynamics in the financial year 2017 that were further strengthened by the recuperated key account business: Q1: -3.7%, Q2: -3.2%, Q3: -1.3%, Q4: +1.6%. They resulted in an overall organic sales decline of -1.7% in 2017.
The good operational development was supported by a positive currency effect, which was mostly influenced by the EUR/CHF exchange rate. While the weighted currency impact was negative in the first half of the year (H1), it swung back into the positive range in H2 and thus influenced the financial year 2017 with a total +1.4%.
By that the -5.5% sales deficit stated in the first half of the year was nearly compensated in H2, resulting in sales 2017 of CHF 384.0 million, which stand at the previous year's level (CHF 385.2 million).
German market depressed, Holland and Eastern Europe expanding
In the largest country segment Germany, the sales development in 2017 turned out to be overall weak with a decline of -3.0% in local currencies. The positive trend and the recuperated key account business indicated a continuing positive drive particularly in this segment with the sales decline of -5.4% in H1 2017 recovering to -0.6% in H2 2017. Depressing effects mainly stemmed from the considerable sales decreases sustained by the Consumer Brands division particularly in the German natural food market. The sales to German retailers were also subject to a volatile development.
Within the country segment Switzerland/Rest of Western Europe with its unchanged sales (organic -0.1%), Holland presented a continuously good sales growth while sales in Spain and Austria resulted in a plus, too. The Food Service business in Switzerland, however, diminished sales results again, causing country sales to come in below the previous year's figure.
The segment Eastern Europe (EAST: Czech Republic, Slovakia, Poland, Hungary) continued to develop favourably in 2017 with +1.8%, having undergone a consolidation after two years of very good organic sales growth (+7.3% in 2016, and +4.5% in 2015).
Consumer Brands slowed down, Food Ingredients on growth path
The new sales structure initiated in 2017 with the aim to strengthen the cooperation of sales divisions continues to prove itself. The Customer Solutions division, which was created by consolidating the European key account business for consumer packs (Brand Owners, Food Manufacturers, Private Label retail, overall around 36% of the Hügli Group), succeeded in strengthening its market presence in 2017 by launching innovative products. The division was nevertheless faced with a decrease of -0.9% in organic sales in 2017 due to temporarily fewer orders from Brand Owners. The Food Service division (out of home market), comprising Hügli's largest division with a 42% sales contribution, also stands slightly below the previous year's value with an organic -1.0%, being depressed mainly by Switzerland's country contribution and a part of Germany's sales organisation. The East countries continued their favourable development, particularly the Czech Republic and Poland.
With its sale of Hügli's own brands, the Consumer Brands division has made organisational and structural progress, which the sales figures will reflect with some delay. After the sales drop of -9.7% in H1 2017, the decline was reduced to -5.8% in H2 2017.
This decrease stems only from the trade goods line - deriving both from strategic planning as well as difficult market conditions - while own products achieved a slight increase. The higher deliveries to the food processing industry by the Food Ingredients division raised division sales by +3.3% in 2017 based on production orders in new product groups as well as Snack Seasonings.
Financial calendar
26 February 2018 | Expected publication of the takeover prospectus by Bell Food Group (www.bellfoodgroup.com) |
13 March until 25 April 2018 | Expected offer period for the offering of bearer shares at CHF 915 per share to Bell Food Group |
10 April 2018 | 7.00 a.m.: Publication of Annual Report 2017 There will be no Media / Analyst's Conference. Queries can be directed to CFO Andreas Seibold (contact see below) |
3 May to 17 May 2018 | Expected extension period for the offering of bearer shares |
16 May 2018 | 4.30 p.m.: Annual General Meeting, Seeparksaal, Arbon All shareholders, which have already offered their share, are entitled to participate in the Annual General Meeting and exercise their voting rights. The basis for an admission card is a bank account statement showing the offered Hügli shares with the new security number. The share price of CHF 915 includes the dividend. No dividend payment will be proposed. |
End of May 2018 | Execution of the transaction Subsequent delisting of the shares from the SIX Swiss Exchange. |
Financial details, information on corporate governance and Hügli shares listed on the SIX Swiss Exchange (SIX Swiss Exchange: (HUE / security no. 464795) can be retrieved from our Investor Relations website: http://www.huegli.com/en/investor-relations
For further information: Andreas Seibold, CFO, Tel. +41 71 447 22 50, andreas.seibold@huegli.com
| Provider | Channel | Contact | ||
|---|---|---|---|---|
|
Tensid EQS Ltd., Switzerland www.tensid.ch |
newsbox.ch www.newsbox.ch |
Provider/Channel related enquiries marco@tensid.ch +41 41 763 00 50 |
