Stable order intake and higher profitability
Applicator Systems reported flat order intake levels and a decrease in sales in the first half of 2019. Operational EBITA declined, whereas operational ROSA increased. Dental, Adhesives and Healthcare continue to perform well as Beauty adapts to a changing market.
From adhesives to beauty – bringing innovative solutions to the market
Sulzer’s innovative teams brought new products to market: ecopaCC™ and Mixpeel™. The ecopaCC™ collapsible cartridge, which is used in the application of adhesives, offers customers sustainable solutions and cost savings. Mixpeel™ is a packaging and dispensing solution where clients benefit from ease of use, an improved filling procedure, additional fill volume, reduced waste and enhanced performance.
With the acquisition of Medmix Systems AG last year, Sulzer has added applicators for tissue treatment, bone repair, oral surgery and drug delivery to its portfolio. The company was integrated smoothly and Medmix is contributing healthy growth to Sulzer’s Healthcare segment.
Our innovation pipeline is full of exciting products and solutions. With the launch of new products and our expertise in multiple technologies, we help our customers tackle their sustainability challenges.
Amaury de Menthiere, Division President Applicator Systems
The division’s Geka business developed a 3D and augmented reality configurator for mascara. With this tool, customers have online access to Geka’s product catalog and can design and decorate their own makeup packaging dynamically.
Same order intake level and lower sales
Order intake remained flat and sales decreased compared with the first six months of 2018. Profitable growth in the Adhesives, Dental and Healthcare business unit was offset by lower volumes in Beauty.
While Sulzer remains the market leader in brush-based beauty applications, the company is investing in a significant transformation of its industrial base to better serve the viral-marketing-driven “independentsˮ. These emerging players are driving the market growth, a trend that should benefit Sulzer over time.
Operational EBITA declined – operational ROSA increased
Operational EBITA declined due to volume shortfall. Operational ROSA increased to 21.5% from 21.2% in the same period of 2018 because of a favorable mix.
If not otherwise indicated, changes from the previous year are based on currency-adjusted figures. These are reported without consideration of IFRS 16, applying the same accounting policies as in the previous year.
Sales by market segment
Sales by region
Key figures Applicator Systems (January 1 – June 30)
|
millions of CHF |
2019 (new accounting policies) 1) |
2019 (previous accounting policies) 2) |
2018 |
Change in +/–% 3) |
+/–% adjusted 4) |
+/–% organic 5) |
|
Order intake |
228.4 |
228.4 |
229.5 |
–0.5 |
0.1 |
–2.1 |
|
Order intake gross margin |
46.4% |
46.4% |
47.5% |
|
|
|
|
Order backlog as of June 30/December 31 |
72.6 |
72.6 |
65.0 |
11.6 |
|
|
|
Sales |
218.2 |
218.2 |
229.0 |
–4.7 |
–4.3 |
–5.9 |
|
EBIT |
15.9 |
15.6 |
36.1 |
–56.7 |
|
|
|
opEBITA |
47.3 |
47.0 |
48.5 |
–3.1 |
–3.2 |
–5.3 |
|
opROSA |
21.7% |
21.5% |
21.2% |
|
|
|
|
Employees (number of full-time equivalents) as of June 30/December 31 |
1’831 |
1’831 |
1’864 |
–1.8 |
|
|
1) According to IFRS 16, see financial review and note 13 of the consolidated financial statements for details.
2) Without consideration of IFRS 16, applying the same accounting policies as in the prior year.
3) Comparing 2019 (previous accounting policies) with 2018.
4) Adjusted for currency effects. Comparing 2019 (previous accounting policies) with 2018.
5) Adjusted for acquisition and currency effects. Comparing 2019 (previous accounting policies) with 2018.
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)