Buhler Group: grows and increases profits

Uzwil / CH. (btg) In 2015, Swiss Buhler Group achieved a sustainable performance, with perceptible growth in turnover and improved profits – despite a challenging economic environment. Turnover was up by 3.4 percent to 2.4 billion CHF, with Ebit rising by 22.4 percent to 177 million CHF. This corresponds to an Ebit margin of 7.3 percent (previous year: 6.2 percent). Currency-adjusted, Buhler grew by 7.1 percent and order intake, slightly down amounting to 2.5 billion CHF (-4.3 percent), would have remained almost stable. «These good results were only possible due to the strong dedication of our employees, their readiness to work extra hours and the comprehensive package of measures which we implemented immediately after abandonment of the Euro peg», says Buhler CEO Calvin Grieder, adding: «We owe our employees our sincerest thanks».

The sustained business development at Buhler is to be seen against a demanding economic background during 2015: Volatility of currencies, market downturn in South America, milling overcapacities in China, epidemics such as Ebola or political conflicts. Additionally, sharp drops in raw material prices for rice and grain have imposed a brake on investments. As a consequence, Buhler had to accept order cancellations of around 4 percent of turnover due to unsecure financing on the customer side. The good results are therefore testimony to the sustainability of the Buhler business model, with a comprehensive solution portfolio of process technologies and a global presence in some 140 countries. «With this set up we were able to successfully manage the risks in the different markets and regions», says Grieder.

Both businesses, Grains + Food as well as Advanced Materials, contributed to the turnover growth. On a regional scale, growth in North America, South East Asia and Middle East + Africa compensated downturns in Europe and South America. Overall, Buhler holds a very balanced position with its global presence: Europe comes to a turnover proportion of 28 percent, Asia 26 percent, Middle East + Africa 16 percent, North America 15 percent, South America 8 percent and South Asia 7 percent.

Profitability clearly improved

With regard to profitability, the financial securing of current orders and projects has proved to be the key to retaining earning power. Additionally, extra working hours of the Swiss employees and the restructuring of European locations, which started in 2014, had a positive effect on corporate profits. The perceptibly improved profitability was also reflected in the RONOA (return on net operating assets), which rose from 18.1 percent to 22.0 percent. With an equity ratio of 45.6 percent (previous year: 45.2 percent), and a net liquidity of almost 400 million CHF, the financial position of Buhler remains strong. This is also reflected by the fact that Buhler is free from any external financing.

Focus on innovation and sustainability

The foundation of the sustainable business development at Buhler is created by cutting-edge technological process solutions. This is why Buhler again invested substantial amounts, running to 102 million CHF, in research and development (previous year: 99 million CHF), and launched a total of around 45 new products and services (Grains + Food: 30, Advanced Materials: 15).

The family company Buhler is particularly committed to sustainability. The company takes into account ecological, economic and social impacts of its activity, to contribute to the quality of life and the environment. In 2015 Buhler has reviewed and updated its sustainability reporting by aligning it with the newest standards (GRI G4). Among the 37 measured indicators the company achieved significant progress in its ecological sustainability: while in 2013 five production sites reported their ecological footprint, today 17 do so. Furthermore, the energy consumption per hour of activity decreased over all sites by 8.2 percent from 2014, and the water consumption by 9.5 percent.

Holding firmly to the course of growth

Buhler is well positioned in global growth markets – the processing of basic foods and animal feeds as well as advanced materials. Current megatrends such as growing world population, increasing urbanization and rising environmental awareness, all go to support the strategically excellent positioning of the Group.

For 2016 the company is expecting an ongoing challenging global economic and political framework. Nevertheless, Buhler aims to continue its growth above the market average in a corridor of 4 to 5 percent with profitability in the range of 8 to 10 percent. To achieve this aim, the Group will continue to optimize its operational excellence and costs base, investing in leading technologies and process solutions as well as expanding and extending its regional presence still further.

Overview of Key Figures

In million CHF	2015	2014	Change
Order intake	2’470	2’582	-4.3%
Order backlog 2015/12/31	1’529	1’582	-3.3%
Turnover	2’412	2’332	3.4%
Ebit	177	145	22.4%
Ebit margin	7.3%	6.2%
Net profit	143	121	18.0%
Net liquidity	392	464
Equity ratio	45.6%	45.2%
RONOA	22.0%	18.1%
R+D costs	102	99	3.5%
Employees as of 2015/12/31)	10’873	10’575	2.8%