• Net sales +9% to CHF 232.3 million
• EBITDA more than quadrupled to CHF 29.2 million
• EBIT of CHF 14.9 million and net profit of CHF 8.3 million
• Reorganisation of Thun site on track
• Challenging market environment led to weaker than expected incoming orders
• Further structural measures to safeguard long-term profitability
• Net sales guidance for FY 2018 revised to CHF 400-440 million; EBITDA margin guidance of about 10% remains intact
Meyer Burger Technology Ltd’s (SIX Swiss Exchange: MBTN) first half-year 2018 results marked the company’s successful return to profitability at the net earnings level. This achievement is mainly a result of various cost optimisation programmes and measures executed over the past eighteen months and of coherent decisions to discontinue non-profitable business units and products.
Net sales amounted to CHF 232.3 million, representing an increase of 9.4% compared to the previous year period (H1 2017 CHF 212.3 million). Positive currency effects on net sales were about CHF 15.2 million or +6.5%. Adjusted for foreign currency effects and the divested DMT operations organic growth of the continuing business was +5.2%.
Over the past months, the market environment for PV equipment suppliers was heavily influenced by the intensifying trade crisis between the USA and China which included new import tariffs on PV modules and cells, as well as the 531 announcement of the Chinese government on 31 May 2018 regarding subsidy cuts in the solar industry. Both facts have led to a currently significant reluctance regarding new investments on behalf of Meyer Burger’s PV customers. In this difficult market environment, Meyer Burger achieved total incoming orders of CHF 137.9 million (H1 2017 CHF 308.5 million). The order backlog amounted to CHF 240.9 million as at 30 June 2018 (31.12.2017 CHF 343.8 million).
Increase in margins; turnaround achieved at the net earnings level
The operating income after costs of products and services amounted to CHF 120.1 million (H1 2017 CHF 98.2 million), reflecting a margin of 51.7% for the first half of 2018 (H1 2017 46.3%). The margin improvement is mainly due to the discontinuation of non-profitable businesses.
Personnel expenses declined by CHF 5.1 million or 7.4% compared to the previous year and were CHF 64.2 million (H1 2017 CHF 69.4 million) as Meyer Burger continued to flexibilise its organization and to significantly reduce its fixed cost base. Other operating expenses amounted to CHF 26.6 million, including one-time charges in a total amount of CHF 4.3 million in conjunction with the divestment of the Solar Systems business activities (H1 2017 CHF 21.9 million).
