Swiss HQ’d group SFS picked up where it left off 2017 with its growth momentum continuing into the first half of this year.
The owner of Gesipa and 51% stake holder of HECO revealed that H1 sales amounted to CHF 855.9 million, up 9.9% on the same period in 2017. Organic sales reached 7.1% with growth in Gesipa’s end markets and regions and positive contributions from all three segments.
SFS was the latest group to reference a sharp increase in materials impacting on profitability. Costs were passed onto customers with a time lag. EBIT margin hit 13.6% (10.4% in H1 2017). Profitability is forecast to significantly improve in H2 2018 thanks to measures taken, positive seasonal effects and passing on price increases to customers.
Investment
CHF 69.5 million was spent on property, plant and equipment in H1 2018, up 44% on H1 2017. Most investments were made in the Engineered Components segment. That high level will continue into the second half of the year.
Fastening momentum continues
Sales momentum continued for fastening. Sales reached CHF 213 million, 12% more than the first half of 2017. Organic growth amounted to 6.9%.
Fastening systems continued to strengthen its market position in a ‘robust market environment’ thanks to products and services. Both divisions contributed to sales growth. EBIT reached CHF 20.7 million for H1 2018, topping the same period last year by 12.2%. EBIT margin stood at 9.4% (prior year period 9.3%). SFS expects sales and earnings to continue to be positive in the rest of the year.
Accelerated growth for Distribution & Logistics
Sales growth was up on 2017 for the D&L segment. Sales hit CHF 169.7 million, 5.9% up on the previous year period. The period included the launch of a new online shop and more focus for speciality retailers. Sharply higher procurement costs continued to impact on profit, but there was still an increase of 9.2% y-o-y to CHF 12.4 million.
Outlook
Sales growth is expected to continue and see full year totals amount to 7-9% up on the previous financial year.