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Forbo significantly improves half-year figures again

17.09.2021 − 

In the first half, Forbo Holding - a company specialising in floor coverings, building and construction adhesives as well as power transmission and conveyor belt solutions - increased its turnover by 14.9% to CHF623.1m. Adjusted to account for currency fluctuations, the increase amounted to 14.3%. Thus, the turnover declines suffered by the company during the comparative period of the preceding year as a result of the corona crisis were almost offset. Even higher growth rates were recorded in the case of earnings, which had also come under pressure last year due to temporary plant closures and disrupted supply chains. Concerning EBITDA, growth of 60.7% to CHF109.9m was recorded; the EBITDA margin increased to 17.6%. EBIT doubled to CHF82.1m, and the EBIT margin rose to 13.2%. Group earnings amounted to CHF63.5m. The sharp increases in raw material costs since the end of 2020 have not yet had much of an effect on the development of earnings in the current reporting period. A greater impact on results is expected in the second half of the year. For the entire period of 2021, Forbo is forecasting an increase of up to 25% in the group result and turnover growth just in the double-digit percentage range.

In the flooring system business division, Forbo generated turnover of CHF423.1m - an increase of 15.5% and, adjusted to account for currency fluctuations, of 14.0%. The highest increases were achieved in the Asia/Pacific region, although business with vinyl, linoleum and textile flooring also improved in the two other regions, Europe and Americas. Turnover growth was also recorded in the case of business with constructional adhesives, which is allocated to the flooring systems segment. Segment EBIT increased by 68.9% to CHF61.8m, and the EBIT margin to 14.6%. In the movement systems business division, turnover - at CHF200.0m - exceeded the preceding year’s figure by 13.6%; adjusted to account for currency fluctuations, the growth rate amounted to 14.8%. Segment EBIT rose by 48.0% to CHF25.3m, and the EBIT margin to 12.7%.

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