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Bauwerk Boen delivers sharp growth in earnings

11.10.2018 − 

Bauwerk Boen Group ended the first six months with a 4.9% growth in consolidated net revenues to CHF150.7m. Adjusted for positive currency effects, revenues were in line with last year’s level at CHF134.7m. The sales volume dwindled by around 3% to 4.6m m² of parquet flooring in the reporting period. However, higher sales prices and additional improvements in the product mix towards larger planks offset this downturn and rising material costs in some cases.

Bauwerk Boen posted a sharp rise in earnings during the first six months of this year. Steps to optimise efficiency at its plants in Kietaviskes, Lithuania and St. Margrethen in recent years and completion of the new Durdevac parquet plant in Croatia left their mark here. EBITDA improved 12.1% to CHF17.2m. The EBITDA margin soared 70 basis points to 11.4%. Adjusted EBITDA, which excludes investment and start-up costs for the Durdevac site and currency effects, increased to CHF19.2m and the corresponding margin to 13. 4%. EBIT climbed 10.3% to CHF11.3m, while the EBIT margin rose to 7.5%. Adjusted for extraordinary and currency effects, EBIT stood at CHF13.6m and the margin at 9.5%. Pre-tax profits soared as much as 24.5% to CHF8.4m. Net profits leapt 20.7% to CHF7.0m.

The company blamed the slump in sales on factors including a strategic decision to walk away from less profitable markets and customers, but also on unfavourable developments in the key markets of Germany, Norway and Sweden.

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