EBITDA margin expansion on high-single digit sales growth
- Inside information
Kortrijk, Belgium, 9 February 2017 – Today Barco (Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) announced results for the six and twelve month periods ended 31 December 2016.
Fiscal year 2016 financial highlights
- Incoming orders at 1081.2 million euro (+ 3.6%)
- Sales at 1102.3 million euro (+ 7.0%)
- Gross profit margin at 34.4% (+ 1.6 ppts)
- EBITDA of 88.0 million euro (+ 13.9 million euro) or 8.0% of sales (+ 0.8 ppts)
- EBIT of 36.6 million euro (+34.9 million euro) or 3.3% of sales (+3.2 ppts)
- Net income of 11.0 million euro
- Free cash flow of 57.4 million euro
- Net financial cash position of 286.6 million euro
- Proposal to increase the dividend to 1.90 euro per share from 1.75 euro
Quote of the CEO, Jan De Witte
“Barco delivered solid sales growth and improved profitability for 2016. Initiatives to lower product costs and a favourable product mix led to a gain in gross profit margin versus 2015 and a year-over-year increase in EBITDA margin, even with significant investments in growth initiatives during the year,” said Jan De Witte, CEO.
“Across our divisions, we advanced technology initiatives, expanded our channel network and increased sales of newer product lines. In Entertainment we continued to leverage our global leadership position in digital cinema, including strong results in China, while propelling sales of laser projectors globally in line with emerging demand for premium formats and technology upgrades. Notable in Healthcare, we saw a promising uptake of our network-enabled visualization solutions for the operating room and single-digit growth across the portfolio. In Enterprise strong momentum in ClickShare boosted the divisional profits while sales growth was offset by weaker sales in Control Rooms,” added De Witte.
“For 2017, our goal is to continue generating sales and profitability growth through further leveraging our technology, software and services. We will continue to drive gross margin accretion initiatives and make choices across business activities, while continuing to invest in innovation,” concluded De Witte.
The following statements are forward looking and actual results may differ materially.
Assuming a stable economic environment and currencies at current levels, management expects further margin improvement on mid-single digit sales growth.
Read the full press release here.
Barco, a global technology company, designs and develops networked visualization products for the Entertainment, Enterprise and Healthcare markets. Barco has its own facilities for Sales & Marketing, Customer Support, R&D and Manufacturing in Europe, North America and APAC. Barco (NYSE Euronext Brussels: BAR) is active in more than 90 countries with 3,500 employees worldwide. Barco posted sales of 1.102 billion euro in 2016.
For more information and the Annual report 2016, please visit the Company’s website at www.barco.com
© Copyright 2017 by Barco
 This is EBIT before non-recurring charges and under the new capitalization methodology. Management considers EBIT (before non-recurring) to be a relevant performance measure in order to compare results over the period 2014 to 2016, as it excludes non-recurring items. Had Barco not changed its accounting treatment of product development costs, the EBIT margin for 2016 would have been approximately 5.4% compared to 5.0% in 2015 and 4.4% for 2014 (Calculated as EBIT before non-recurring and excluding amortizations less capitalized product development expenses for prior periods).
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