Group business performance

Positive development of Bystronic’s continuing operations with strong order intake and sales

In the first half of 2021, net sales and order intake of Bystronic’s continuing operations were substantially above the prior-year period. At constant exchange rates, net sales increased by 19.2% compared to the first half of 2020, while order intake rose by a strong 62.8%. The operating result (EBIT) increased by 30% to CHF 30.3 million, with an EBIT margin of 6.9%. In line with the strategy, the divestments of FoamPartner and Mammut were successfully closed in the first half of 2021, resulting in a cash inflow of CHF 322.7 million.

Continuing operations

The acceleration of Bystronic’s business development, which already began in the fourth quarter of 2020 and was accentuated in the first quarter of 2021, extended into the second quarter of 2021. In the first half of 2021, Bystronic’s continuing operations recorded net sales of CHF 440.7 million (H1 2020: CHF 372.5 million), 18.3% above the prior-year period (+19.2% at constant exchange rates). The order intake amounted to CHF 549.5 million (prior-year period: CHF 340.2 million), an increase of 61.5% or a plus of 62.8% when adjusted for exchange rates. In comparison to the pre-pandemic levels of the first half of 2019, the growth at constant exchange rates was 4.4% for net sales and 27.6% for order intake.

The positive business performance was broad-based in all regions. Bystronic achieved solid growth above and beyond pandemic-related catch-up effects – in particular in its service business, a key growth driver of the Strategy 2025. As such, the global service business in the first half-year accounted for 22.9% of sales, compared to 19.9% in H1 2020 and 20.4% in H1 2019.

The operating result (EBIT) of the continuing operation in the first half-year 2021 amounted to CHF 30.3 million with an EBIT margin of 6.9% (prior-year period:  CHF 23.4 million resp. 6.3%). As previously announced, one-off costs in connection with the transformation of the Group were incurred in the first half of the year. Adjusted for these costs, the EBIT margin for the first half of 2021 stands at 8.0%, somewhat impacted by the strategic expansion of the service business and the associated recruitment of additional service technicians. EBITDA of the continuing operations in the first half of 2021 amounted to CHF 39.4 million (previous year: CHF 31.8 million) or 8.9% of net sales (H1 2020: 8.5%).

As in other industries, higher raw material prices and limited shipping capacities proved to be challenging both for Bystronic and our customers. Thanks to our increasingly regional organization and sourcing, we were able to partially mitigate the impact of this on our performance.

While our customers faced the challenges of higher steel prices and labor costs, not least as a result of the pandemic, we are seeing an increased demand for our automation solutions, which contribute towards the reduction of material waste and the optimization of workflows.

In the first half of 2021, Bystronic acquired the software specialist Kurago, in order to accelerate the market launch of our smart factory solutions. Initial pilot projects are scheduled for the second half of 2021.

Outlook

Assuming that the positive business development witnessed in the first half of 2021 extends into the second half of the year, the situation on the procurement markets does not accentuate further and inflation remains stable, Bystronic expects sales growth for its continuing operations of around 15% in the 2021 financial year, with an EBIT margin of 8 to 9%.

Discontinued operations

Net sales of the discontinued operations amounted to CHF 183.6 million, to which FoamPartner contributed CHF 76.3 million in the first quarter of 2021 (+13.4% at constant exchange rates) and Mammut CHF 107.3 million for the full first half-year 2021 (+32.9% at constant exchange rates).

The operating result (EBIT) of the discontinued operations amounted to CHF -85.5 million. The divestment loss of FoamPartner accounted for CHF -78.5 million, resulting from the goodwill recycling as prescribed by the Swiss GAAP FER accounting standards.

Total Group

The Group’s net sales amounted to CHF 624.3 million in the first half-year of 2021 (H1 2020: CHF 576.2 million), an increase of 8.4%. The operating result (EBIT) was CHF -55.2 million, due to the loss in connection with the divestment of FoamPartner. In the prior-year period, the operating result (EBIT) was CHF 1.8 million, excluding CHF 48.1 million divestment gain from the sale of Schmid Rhyner, which was completed at the end of February 2020.

Overall, the Group result for the first half of 2021 was CHF -60.9 million, compared to CHF 46.6 million in H1 2020. For the continuing operations, the Group result amounted to CHF 23.3 million, an increase of CHF 6.7 million compared to the first half of 2020.

The earnings per class A registered share in the first half of 2021 were CHF -29.50 for the Group or a pro forma CHF 11.19 for the continuing operations.

Operating free cash flow for the continuing operations was CHF 19.7 million compared to CHF -24.4 million in H1 2020. In addition, Bystronic recorded a cash inflow from the divestment of the FoamPartner and Mammut business units of CHF 322.7 million. After the distribution of CHF 124.2 million in dividends for the 2020 financial year, Bystronic held cash, cash equivalents and securities of CHF 480.8 million at mid-year.

The Board of Directors proposes not to distribute an interim dividend and will state its position in the context of the Annual Report 2021.