OREANDA-NEWS. The Interroll Group saw a record order intake in the first half of 2016 of CHF 216.3 million (previous year: CHF 206.3 million) while organic growth rose to 4.8%, underpinned by ongoing product business and projects in the areas of eCommerce and airports. A record figure for net sales at CHF 187.1 million was likewise achieved, corresponding to an increase of 9.2% over the first six months of 2015 (CHF 171.3 million). All regions contributed to this growth, which was strictly organic in nature. Positive currency effects accounted for round 3.0% of the growth in sales and order intake.

Product groups achieved record figures

The strong demand within the “Rollers” product group was also reflected in the record production figures. June 2016 saw Interroll produce more rollers than any other month in its history. Consolidated sales stood at CHF 48.1 million, only 0.4 % below the record figure of CHF 48.3 million a year ago, consolidated order intake was recorded at CHF 48.5 million (previous year: CHF 48.1 million).

The “Drives” product group posted sales of CHF 61.7 million in the first half of 2016, up 16.0% from the previous year (CHF 53.2 million). Consolidated order intake increased to CHF 62.1 million, compared with CHF 57.2 million a year earlier. Due to the strong demand for powered 24V roller conveyors as well as to the development of new technologies in this area, Interroll will continue to expand its capacities at the Wermelskirchen site in Germany until 2017.

In the first half of 2016, the “Conveyors & Sorters” product group recorded consolidated sales of CHF 44.5 million, beating its figures from the year prior by 2.1% (CHF 43.6 million). Consolidated order intake increased significantly by 5.4% to CHF 74.4 million, compared with CHF 70.6 million a year earlier. Following its successes in Europe and Asia, Interroll launched the modular conveyor platform on the American market in early 2016.

With the first half of 2016 now complete, Interroll’s product group “Pallet & Carton Flow” is reporting consolidated sales of CHF 32.8 million, 25.2% higher than from the same period a year ago (CHF 26.2 million). Consolidated order intake rose to CHF 30.9 million (previous year: CHF 30.4 million). Asia and Europe produced especially strong demand during the first half of the year.

Regional results reflect globalization

Interroll continued its globalization strategy in the first half of 2016 by tapping new markets. Interroll recorded growth in all regions. Europe-Middle East-Africa (EMEA) accounted for 59% of total revenue, the Americas for 28% and Asia-Pacific for 13%.

The EMEA region’s incoming orders grew by 15.1% year-on-year, totalling CHF 130.8 million. Sales amounted to CHF 111.5 million, or 6.9 % higher than in the same period a year ago. The growth was driven now as then by strong demand for rollers and drives as well as for sorters and conveyors.

The Americas region also grew rapidly for the Interroll Group in the first half of 2016. Sales rose by 13.6% to CHF 51.5 million. The lion’s share of that development came on the North American market, with the United States leading the way. Interroll’s growth trends here from recent years continued as well. Incoming orders dropped slightly to CHF 60.8 million (previous year: 64.8 million).

Interroll continued its growth in the Asia-Pacific region as well in the first half of 2016. After the first six months of this year, sales totalled CHF 24.2 million, representing a 11.2% rise year-on-year. Incoming orders dropped by 12.6%, amounting to CHF 24.4 million in total. However, the previous year’s figures included a large dynamic storage project in China.

The result once again increased significantly

Bolstered by the higher sales, the resulting economies of scale and continued productivity improvements, EBITDA grew by 16.4% in the first half of 2016 to CHF 30.9 million (previous year: CHF 26.5 million). The EBITDA margin was 16.5% (previous year: 15.5%).

EBIT also grew year-on-year. After CHF 17.5 million in the previous year, this figure was CHF 22.0 million in the first half of 2016. The EBIT margin hit 11.7 % (previous year: 10.2 %).

Year-on-year net profit rose by a notable 23.4%, from CHF 12.8 million to CHF 15.8 million. The net profit margin stood at 8.4 % (previous year: 7.5%).

Lower investments

Investments totalling CHF 6.3 million gross were significantly below the levels seen in the previous year (CHF 12.3 million). This can be attributed in part to the fact that last years‘ Interroll Academy investment project in Baal, Germany, is no longer on the books.

Strong cash flow

Operative cash flow once again rose year-on-year, attributable in particular to the higher net profits, to CHF 14.2 million (previous year: CHF 11.6 million). Due to the higher cash flow and lower investments, free cash flow reached CHF 8.3 million, a significant CHF 8.9 million improvement in a year-on-year comparison (2015: CHF -0.6 million).

Solid balance sheet development

The balance sheet increased as of 30 June 2016 to CHF 322.7 million and was thus 10.1% above the level at the end of 2015 (CHF 293.0 million). Higher net profits also affected equity, which rose to CHF 213.3 million as at 30 June 2016. This is 2.7% above the closing value of CHF 207.6 million from 31 December 2015. The equity ratio was thus 66.1%, compared to 70.9% on 31 December 2015.