Kortrijk, Belgium, 19 July 2018, 07:30 am – Today Barco (Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) announced results for the six month period ended 30 June 2018.
First half 2018 financial highlights
- Orderbook at 324.4 million euro (+14% versus end of year 2017)
- Incoming orders at 539.7 million euro (reported -4.0%; at constant currencies +2.0%)
- Sales at 498.1 million euro (reported -3.8%; at constant currencies +2.7%)
- Gross profit margin of 38.8% (+0.5 ppts)
- EBITDA of 51.5 million euro (+3.3 million euro) or 10.3% of sales (+1.0 ppts)
- Adjusted EBIT of 34.9 million euro (+3.4 million euro) or 7.0% of sales (+0.9 ppts)
- Net income at 27.3 million euro (+8.1 million euro)
EBITDA margin expanded 1.0 percentage point on the strength of gross profit margin improvements and lower operating expenses while the company continued to invest in its growth platforms. Each of the divisions posted higher EBITDA margins.
Reported orders and sales were below last year, but +2% and +2.7% respectively on a constant currency basis. In Enterprise continued strong growth of ClickShare was offset by lower Control Rooms’ sales due to soft demand in the rear projection cube market. Healthcare generated strong order intake reflecting continued strengthening of its market position in both the diagnostic and surgical segments. In Entertainment, Venues & Hospitality produced higher sales year-over-year for the third consecutive semester which partially offset lower Cinema sales, mainly in China.
Barco continued to execute on its ‘focus to perform’ program and to advance its key growth initiatives. The company sold X2O Media; opened its factory for the future in Belgium; and, started the relocation of manufacturing activities from Norway to Belgium.
In parallel, Cinionic, Barco’s new Cinema venture, was commercially launched during the first half and signed its first renewal contracts; UniSee, the new LCD-based videowall, completed its first 50 installations with reference accounts around the world; and Healthcare opened its local R&D and manufacturing center in Suzhou, China, under its ‘In China for China’ program, aimed at more effectively penetrating the Chinese Healthcare market.
Quote of the CEO, Jan De Witte
“Reported sales for 1H18 were, as expected, slightly below a strong 1H17. A solid orderbook, positive book-to-bill ratios in each division and strong sales funnels give us confidence that we will deliver sales growth for 2H18 and another year of EBITDA margin improvement for 2018 on flat sales,” said Jan De Witte, CEO of Barco.
“Barco’s first semester performance demonstrates the progress we are making toward our stated goal of building a stronger foundation that supports improved quality of earnings. We’re pleased with the progress and we continue our strong focus on realizing further business- and cost- efficiencies, while investing in innovative solutions and go-to-market strategies as we advance towards our mid- term objective of achieving an EBITDA margin in the range of 12% to 14% by 2020,” concluded Jan De Witte.
The following statements are forward looking and actual results may differ materially.
Given the performance for the first half of the year – and assuming a stable global economic environment and currencies at current levels - management reaffirms its full year outlook which calls for further margin improvement.
The deconsolidation of BarcoCFG is expected to result in a reduction in reported group sales and orders for the year of approximately 40 million euro. Stronger projected EBITDA across the group for 2H18 is expected to offset the reduction in EBITDA resulting from the deconsolidation.
Read the full press release here
Barco designs technology to enable bright outcomes around the world. Seeing beyond the image, we develop visualization and collaboration solutions to help you work together, share insights, and wow audiences. Our focus is on three core markets: Enterprise (from meeting and control rooms to corporate spaces), Healthcare (from the radiology department to the operating room), and Entertainment (from movie theaters to live events and attractions). In 2017, we realized sales of 1.085 billion euro. We have a team of 3,600 employees, located in 90 countries, whose passion for technology is captured in 400 granted patents.
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