New records in a challenging environment - FASTENER EUROPE MAGAZINE
Silmek İstediğinize Eminmisiniz ?

Eminseniz Lütfen Evet'e Basın.


New records in a challenging environment

In an economically challenging environment, the Bossard Group generated sales of CHF 1,153.8 million in the financial year 2022 (prior year: CHF 995.1 million). This represents an increase of 15.9 percent (in local currency: +18.4 percent), corresponding to organic sales growth of 15.0 percent in local currency. EBIT amounted to CHF 141.5 million (prior year: CHF 123.3 million), a plus of 14.7 percent, resulting in an EBIT margin of 12.3 percent (prior year: 12.4 percent). Net income increased by 7.7 percent to CHF 105.6 million (prior year: CHF 98.0 million). For the first time in its history, the Group reached the following milestones: sales of more than 1 billion Swiss francs and a net income of over 100 million Swiss francs.

The broad-based growth of the Bossard Group, which began in the fourth quarter of 2020, continued in the financial year 2022. All three market regions achieved new records. While demand in Europe stabilized at a high level over the course of the year, America posted im-pressive double-digit growth rates during the entire year. Asia also maintained double-digit sales growth.

At the same time, the strong global demand only led to a slight improvement of the tense situation on the procurement market. Consequently, delivery capability and inventory levels continued to play a key role in 2022. The complexity in procurement markets, combined with high transportation costs, and increasing requirements for a responsible handling of resources have strengthened the trend toward “nearshoring.” As a result, the structural shortage of skilled workers manifested itself clearly, triggering increased demand for Bossard’s Smart Factory Assembly (SFA) solutions.

Even 20 years after the market launch of the first fully digitalized and automated C-parts management system, there is unbroken demand for our solutions. With over 437,000 installed Smart Devices (+7.5 percent compared to prior year), more than 1,100 customers globally rely on the proven Smart Factory Logistics (SFL) applications. This is how Bossard helps its customers design their processes more efficient, thus increasing productivity. Bossard calls this holistic approach “Proven Productivity.”

Broad-based growth in Europe
Sales in Europe increased by 8.7 percent to CHF 624.2 million (in local currency: +14.4 percent). Overall, demand remained at a high level in spite of continuing geopolitical tensions and the resulting challenges. Despite the strong Swiss franc, Bossard achieved
above-average growth in the aerospace, electronics, and mechanical engineering sectors. In an environment marked by inflation and a shortage of skilled labor, Bossard’s Smart Factory services drew even more attention from customers. The acquisition of the Dutch company Jeveka B.V. in 2021 also contributed to the positive development. Adjusted for acquisitions, annual sales totaled CHF 593.5 million.

Continued strong growth in America
Sales in America grew by 36.8 percent to CHF 309.4 million (in local currency: +31.0 percent). The positive business development was driven by dynamic and broad-based economic growth. In the electromobility sector, exciting projects were implemented. The
acquisition of PENN Engineered Fasteners Corporation in Canada, consolidated since December 1, 2022, contributed to the gratifying sales performance. The acquisition is in line with the strategic approach to further expand Bossard’s capabilities in America.

Above-average development of Asia’s growth industries 
Despite repeated lockdowns in China, Bossard was able to maintain double-digit sales growth in Asia. At CHF 220.2 million, sales were 13.0 percent (in local currency: +14.4 percent) above the prior year. Bossard achieved above-average growth especially in the
growth industries of electromobility, electronics, and railway.

Robust profitability
In spite of the higher cost basis, the strong growth resulted in an increase in earnings. EBIT grew by CHF 18.2 million to a record of CHF 141.5 million, an increase of 14.7 percent. The EBIT margin was 12.3 percent (prior year: 12.4 percent), thus remaining at the prior year’s level in spite of the inflationary environment. Net income grew by 7.7 percent to CHF 105.6 million (prior year: CHF 98.0 million). The Bossard Group thus achieved not only its best result in the Group’s history but also a profit of over 100 million Swiss francs.

Solid balance sheet despite significantly higher net debt
The significant growth as well as the Group’s investment activity are also reflected in the increase in total assets. Compared to the prior year, total assets increased by 17.8 percent to CHF 910.1 million. Despite high profitability, the equity ratio fell from 45.2 percent in the prior year to 41.7 percent. The reason for this decline is the disproportional rise in net working capital and the goodwill offset from the acquisition of PENN Engineered Fasteners Corporation against equity. As a result of high investment activity, accelerated growth, and especially the considerable increase in inventory, net debt increased from CHF 217.2 million in the prior year to CHF 319.0 million. The debt factor – net debt in relation to EBITDA – was 1.9 after 1.5 in the previous year.

Proposals at the annual general meeting of shareholders
At the 2023 annual general meeting of shareholders, the board of directors will propose a gross dividend of CHF 5.50 per registered A share (prior year: CHF 5.10 gross). This represents an increase of 7.8 percent.

The uncertainties on the procurement market, inflation, central bank policies, and geopolitical tensions will continue in the financial year 2023. But even a volatile market environment holds opportunities especially in the sunrise industries electromobility, railway, electronics and healthcare. The current cost and wage inflation is expected to support demand for automated and digital Proven Productivity solutions from Bossard. In addition, the focus in 2023 will be on the Strategy 200, with Bossard targeting an average organic growth rate of over 5 percent and an EBIT margin of 12 percent to 15 percent in the medium term following  a phase of increased investments. Bossard continues to rely on a strong balance sheet with an equity ratio of at least 40 percent and a payout ratio of approximately 40 percent of net income.