The Bossard Group has again achieved a record turnover in the financial year 2014. Despite a more difficult market environment in Europe in the second half of the year, revenue increased by 1.9% to CHF 621.3 million (+3.1% in local currency). The targeted development work of the previous years is obviously paying off: Bossard generated substantial revenues in most European sales markets. The company is distinguishing itself by remarkable progress in the Asian business as well. Bossard had expected to fight with headwinds in America. However here, there are good conditions for a revival in demand.
The sales development achieved by Bossard for the financial year 2014 is in line with expectations. The growth rate of 3.1% in local currency has, however, again been eroded to a certain extent by the upward trend of the Swiss franc against most currencies. Bossard’s figures also reflect the harsher conditions in the last months of the year. Thus consolidated sales still increased in the fourth quarter of 2014 by 1.4% to CHF 147.8 million (-0.1% in local currency).
Europe on course for growth
In the European markets, where Bossard achieved over 64% of revenues in 2014, revenues were increased by 3.5% to CHF 398.1 million (+4.4% in local currency). This result is based on the positive development of business in all sales markets. However, the weak tendency of the Euro burdened Bossard’s performance again. Also the dynamics of demand in the course of the year visibly slowed down because of the conflict in the Ukraine and the boycott measures against Russia. Nevertheless, Bossard’s European business showed a rising tendency even in the fourth quarter; turnover increased by 0.4% to CHF 91.4 million; resulting in a plus of 1.5% in local currency.
Weakness in demand of a major customer in the USA
In America, Bossard had to cope in 2014 with a setback which can be substantially explained by the decline in demand of a major customer. On balance, sales in the course of the year declined by 9.1% to CHF 122.3 million (-8.0% in local currency). This weakness in demand has also continued in the fourth quarter (-3.6% to CHF 29.3 million). Nevertheless, Bossard benefited from the again somewhat stronger dollar in the final months of the last financial year.
Added to this, cooperation with the biggest American electric vehicle manufacturer started more slowly than initially supposed. These sales volumes are now shifting chronologically: Co-operation with this customer is secured by means of a three-year contract which includes a total of USD 140 million and thus creates the prospect of increasing volumes in the current year.
Dynamic development in Asia
The Bossard Group’s Asian business is developing pleasantly. Revenues have increased in all Asian sales markets, sometimes markedly. This applies particularly to the business in India where a significant improvement in the general situation was detected. On balance, revenues in the Asia business rose by 11.6% to CHF 100.9 million, in local currencies by as much as 14.0%. Bossard Asia thus distinguished itself for the second year in a row by a double-digit growth rate. For the first time, the volume of sales has also exceeded the mark of CHF 100 million.
The dynamics of Bossard’s business in Asia has continued - slightly slower - during the fourth quarter: Revenues rose in the final three months by 11.5% to CHF 27.1 million, in local currency by 6.9%. Overall, the Bossard Group is today reaping the rewards of the targeted investments which it has made and continues to make to develop the Asian markets.
Bossard will publish the detailed annual accounts and the 2014 annual report at the media and analyst conference on March 4, 2015, in Zurich.