All of Bühler Group
's businesses achieved organic growth, the company reported.
Haas was successfully integrated into the Bühler Group in 2018.
Group turnover increased by 22% to CHF 3.3 billion.
The Bühler Group also established a third business pillar, Consumer Foods.
Its new, most advanced factory in Changzhou, China, is fully operational, and construction of its CUBIC innovation campus in Uzwil, Switzerland is nearing completion.
To drive digitalization, the company entered a partnership with Microsoft.
“Volumes developed well, but profits were below our objectives. Despite risks such as trade conflicts, we are well positioned with our portfolio and our global organization and look to the future with confidence,” Bühler CEO Stefan Scheiber said.
Turnover grew for Grains & Food by 9.2% to CHF 2.2 billion, for Advanced Materials by 5.6% to CHF 705 million, and Haas contributed CHF 373 million.
As a result of the Group’s combined organic and acquisitional growth, Bühler increased its order intake by 17% to CHF 3.3 billion and its turnover by 22% to CHF 3.3 billion, which resulted in an order backlog of CHF 1.9 billion (+5.9%). Regionally, Europe (+28%) and Asia (+40%) were the markets showing the strongest turnover growth.
EBIT increased in absolute terms by 13% to CHF 231 million, which represents an EBIT margin of 7.1% (previous year: 7.6%). Profitability was impacted by necessary adjustments at the Changzhou, China site. After years of over-proportional growth in China, this move ensures its alignment with Bühler’s global standards and systems and sets the foundation for further expansion. Without this one time effect, EBIT margin would have reached 8%. With a slightly improved tax rate of 20.1% (previous year: 20.2%) and a financial result of CHF 4.6 million (previous year: CHF 13 million), net profit grew by 9% and reached CHF 188 million (previous year CHF 173 million).
Operating cash flow increased by 28% to CHF 202 million. Net liquidity remained at a high level of CHF 445 million (+1.1%, excluding corporate bond of 420 million in the previous year) despite high investments. The equity ratio decreased slightly to 42.2% (previous year: 44.5%), mainly due to effects from the Haas acquisition.
The new Consumer Foods business "encouraged us to accelerate the full integration and new setup of our food businesses,” Scheiber said.
Consumer Foods stands from January 2019 alongside Grains & Food and Advanced Materials. Under the leadership of Germar Wacker, Haas achieved CHF 382 million in order intake and CHF 373 million in turnover. This represents the best result in the history of Haas, driven mainly by the Wafer and Biscuit business units.
Investments in the asset base rose to CHF 118 million (+18%), driven by spending on the new CUBIC innovation campus and application centers, the ongoing modernization of the Swiss locations, and the ramp-up of sites in China.
In addition to the acquisition of Haas and US-based Sputtering Components Inc., the funds were used for the development of new digital technologies and process solutions.
Bühler also expanded its global production network with the opening of a new battery application lab in Wuxi, China; the move of Bühler’s Die Casting revision business to a new site in Brescia, Italy, and the modernization and expansion of the Uzwil site.
The CUBIC innovation campus in Uzwil is nearing completion. The official inauguration of the fully operational campus is scheduled for spring. The CUBIC combines research and development with seven renewed application centers, which will be available to customers for conducting tests and trial series together with Bühler.
Spending on research and development amounted to CHF 145 million (4.4% of turnover). The group introduced more than 20 digital products, achieved sizable initial turnover, and entered a partnership with Microsoft in April 2018.
Currently, customers can choose from a digital portfolio of over 30 digital services. A further 30 will be launched in 2019.
In September, another milestone was reached with the launch of the Bühler Insights digital platform – the company's secure, high-performance, and reliable platform for all of its digital services. These initiatives create new potential for improving safety, quality, efficiency, and traceability across production value chains. Today, more than 85% of the company's solutions can be connected to the platform. It offers numerous interfaces with standard industry automation and control systems, thus enabling the connection of a wide range of technologies.