The Datwyler Group increased its unaudited net revenue, compared with the previous year, by 4.3% to CHF 1,215.8 (previous year: CHF 1,165.2 million) during 2016. Adjusted for positive currency and acquisition effects, organic growth of 1.4% was achieved in the year under review. Various one-off situations across both divisions restricted organic growth to this level. For example, the Sealing Solutions division had to contend with capacity bottlenecks in the Health Care market segment and delays to some of its Civil Engineering projects. In the Technical Components division, streamlining of product ranges and standardisation of discounts had the expected negative impact on revenue.
In 2016, the Datwyler Group continued to underperform as regards organic revenue growth. I am convinced, however, that the preparatory work already done and measures due to be implemented will see both divisions grow faster than the market in future.Dirk Lambrecht, CEO
Sealing Solutions division enjoying strong demand
The Sealing Solutions division performed well again in 2016. Thanks to its leading positions in attractive global market segments, Datwyler managed to increase net revenue, compared with the previous year, by 6.7% to CHF 753.3 million (previous year: CHF 705.9 million). Adjusted for currency and acquisition effects, this equates to organic growth of 2.9%. In terms of the Health Care market segment, the high-quality elastomer components for prefilled syringes and drug delivery systems recorded the biggest growth. The Automotive market segment saw improvements across all geographical regions. And China also recovered from the previous year's slowdown in growth. The partnership with Nespresso in the Consumer Goods market segment continues to develop nicely.
Technical Components division managed to reverse the negative revenue trend
With its focus on Europe, the Technical Components division continued to operate in a challenging market environment in 2016. In the business-to-consumer segment in particular, demand in the second half of the year declined sharply in all markets to some extent. However, Datwyler’s distribution companies Distrelec, Reichelt and Nedis gratifyingly managed to increase revenue in core business with business-to-business customers. Significant operational improvements due to the increased stability of structures and processes resulted in better product availability and shorter delivery times. After several years of negative revenue development, the division reversed the trend in 2016 and upped its net revenue slightly to CHF 462.6 Mio. (previous year: CHF 459.3 Mio.). Adjusted for currency effects, this means that revenue remained virtually the same in organic terms.
The financial statements and full Annual Report 2016 will be published on 7 February 2017 and commented on at the Annual Press Conference and Analyst Conference to be held on the same day (10 a.m., SIX Group Services AG, ConventionPoint, Zurich).