Datwyler grows revenue and improves margins.

Ad hoc announcement pursuant to Art. 53 LR SIX Swiss Exchange |
In the first half of 2018, the Datwyler Group increased its net revenue by 7.7% to CHF 694.1 million. Both divisions grew their revenue, with demand for high-quality seal components for the health care industry in particular outstripping market growth. The Group’s EBIT margin improved to 13.1%, while the net result rose by 17.3% to CHF 62.5 million. For the year as a whole, Datwyler is expecting net revenue of between CHF 1'350 million and CHF 1'400 million and an EBIT margin in the 12%-to-15% target range. Some promising acquisition projects should generate additional momentum in the second half of the year.

The Datwyler Group maintained its profitable growth path during the first half of 2018 in what was a moderate market in parts. Unaudited net revenue was up 7.7% on the same period last year at CHF 694.1 million (previ-ous year: CHF 644.5 million). Thanks to its leading market positions and operational strength, the Sealing Solu-tions division made a significant contribution to this growth. Demand for high-quality seal components for the health care industry outstripped market growth. However, the Technical Components division also succeeded in increasing revenue on the back of its core business-to-business (B2B) online distribution activities. Adjusted for positive currency effects, this resulted in 2.5% organic growth for the Datwyler Group as a whole.

Further improvement in EBIT margin

Focusing on system- and time-critical components for long-term growth markets has allowed Datwyler to fur-ther improve its profitability. The operating result (EBIT) thus rose by 13.2% to CHF 90.7 million (previous year: CHF 80.1 million). The EBIT margin improved further to reach 13.1% (previous year: 12.4%). Drawing on its operational strength, Datwyler was able to offset higher raw material prices and set-up costs associated with growth projects. The net result improved by 17.3% to CHF 62.5 million (previous year: CHF 53.3 million). Con-struction work on the new Health Care plant in the USA saw investments increase to CHF 71.7 million during the first half of the year (previous year: CHF 37.7 million). When this new US plant opens in the second half of 2018, Datwyler will be well positioned to profit from the rapid rise in demand for high-quality components for prefilled syringes and other modern drug delivery systems.

The Datwyler Group has maintained its profitable growth path in the first half of 2018. The healthy order book in the key market segments of Health Care and Automotive as well as some promising acquisition projects should generate additional momentum in the second half of the year.

CEO Dirk Lambrecht

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