Order intake, sales and profitability increased
In 2018, Applicator Systems reported growing order intake and sales. Operational EBITA and operational ROSA also increased. Sulzer acquired Medmix Systems Ltd, strengthening its position as a state-of-the-art supplier of mixing and dispensing solutions in the healthcare market.
Expanding portfolio of applicators
In August 2018, Sulzer completed its acquisition of Medmix Systems Ltd. The Swiss company provides applicators for tissue treatment, bone repair, oral surgery and drug delivery. The acquisition expanded Applicator Systems’ portfolio of mixing and dispensing devices in the healthcare segment, complementing its leading positions in dental, adhesives and beauty.
The acquisition of Medmix will help us gain ground in the growing healthcare market in addition to our already leading positions in the dental, adhesives and beauty segments.
Amaury de Menthiere, Division President Applicator Systems
To increase the capacity of its industrial adhesives business, Sulzer opened a new production plant in Wroclaw, Poland, in 2018. Moreover, the company established a new European distribution hub in Luxembourg for its adhesives products.
Order intake increased on a currency-adjusted basis
Order intake grew on a currency-adjusted basis and remained flat organically. Order intake in the adhesives, dental and healthcare segments together increased by 11.8% including acquisitions and by 4.8% organically. Order intake in the beauty segment was down by 5.4% organically because a major customer switched to a new-generation product, which resulted in a disruption of order intake and sales.
Sales, operational EBITA and operational ROSA increased
Sales increased compared with 2017, driven by the Transcodent acquisition and strong organic order intake in the dental segment. The acquisitions of Transcodent and Medmix had a positive impact, adding CHF 16 million to sales. Applicator Systems reported growing sales across all regions. The increase was most pronounced in Europe, the Middle East and Africa (EMEA).
In 2018, operational EBITA increased, largely driven by higher volumes in the dental and adhesives segments. Operational ROSA also increased.
Sales by (sub-)segment
Sales by region
Safety performance in 2018
In 2018, the division reported an accident frequency rate (AFR) of 8.1 cases per million working hours (2017: 7.2). The accident severity rate (ASR) amounted to 73.2 lost days per million working hours (2017: 50.4). The increase stemmed from acquisitions and ongoing integration efforts. In 2019, the division will put renewed focus on safety ownership and culture. You can read more about the company’s health and safety efforts in the chapter “Social sustainability”.
If not otherwise indicated, changes from the previous year are based on currency-adjusted figures. These are reported without consideration of IFRS 15, applying the same accounting policies as in the prior year.
Key figures Applicator Systems
|
millions of CHF |
2018 (new accounting policies) 1) |
2018 (previous accounting policies) 2) |
2017 |
Change in +/–% 3) |
+/–% adjusted 4) |
+/–% organic 5) |
|
Order intake |
449.6 |
449.6 |
426.3 |
5.4 |
4.2 |
0.3 |
|
Order intake gross margin |
45.9% |
45.9% |
43.9% |
|
|
|
|
Order backlog as of December 31 |
65.0 |
65.0 |
66.8 |
–2.8 |
|
|
|
Sales |
453.8 |
453.8 |
421.6 |
7.7 |
6.3 |
2.4 |
|
EBIT |
63.8 |
63.8 |
63.2 |
0.9 |
|
|
|
opEBITA |
95.7 |
95.7 |
86.8 |
10.2 |
9.5 |
5.7 |
|
opROSA |
21.1% |
21.1% |
20.5% |
|
|
|
|
opROCEA |
22.9% |
22.9% |
22.7% |
|
|
|
|
Employees (number of full-time equivalents) as of December 31 |
1’864 |
1’864 |
1’716 |
8.6 |
|
|
1) According to IFRS 15, see financial review and note 34 of the consolidated financial statements for details.
2) Without consideration of IFRS 15, applying the same accounting policies as in the prior year.
3) Comparing 2018 (previous accounting policies) with 2017.
4) Adjusted for currency effects. Comparing 2018 (previous accounting policies) with 2017.
5) Adjusted for acquisition and currency effects. Comparing 2018 (previous accounting policies) with 2017.
Abbreviations
EBIT: Operating income
opEBITA: Operating income before restructuring, amortization, impairments and non-operational items
opROSA: Return on sales before restructuring, amortization, impairments and non-operational items (opEBITA/sales)
opROCEA: Return on capital employed (opEBITA/average capital employed)