Bühler Group Records Strong Growth
The Bühler Group has recently announced its financial results for 2018. The company saw organic growth across all businesses with increases in market share and order intake. Turnover increased by 22% to CHF3.3bn.
“We are satisfied with the 2018 overall results. Volumes developed well, but profits were below our objectives. Despite risks such as trade conflicts, we are well positioned with our portfolio and our global organization, and look to the future with confidence,” says Bühler’s CEO Stefan Scheiber (pictured).
Turnover for Grains & Food increased by 9.2% to CHF2.2bn, while Advanced Materials saw an increase with 5.6% to CHF705m. Bühler has also successfully integrated Haas, an Austrian maker of wafer, biscuits, and confectionery production systems, which brought in CFC373m. Fueled by the combined organic and acquisitional growth, Bühler increased its order intake by 17% in 2018 to CHF3.3bn and its turnover by 22% to CHF3.3bn. Europe (+28%) and Asia (+40%) were the markets that showed the strongest turnover growth.
In the press release, Bühler also states its EBIT for 2018 increased in absolute terms by 13% to CHF231m, which represents an EBIT margin of 7.1% (7.6% the previous year). Profitability was impacted by the investments made at Bühler’s Changzhou, China site, which is now fully operational. Net profit grew by 9% and reached CHF188m (CHF173m in 2017), while operating cash flow increased by 28% to CHF202m (USD201m). Net liquidity was reported at CHF445m.
Investments in the Bühler’s asset base rose to CHF118m, which constitutes an 18% increase. This was driven mainly by spending in the new CUBIC innovation campus, due to open this spring, as well as ramping-up of sites in China, and ongoing modernization of the Swiss locations. Finally, spending on research and development amounted to CHG145m with 4.4% of turnover.
In related news, Bühler has recently appointed Mark Macus in the position of CFO effective September 1, 2019. Macus will replace Andreas Herzog who has held the CFO position for 17 years.
Mark Macus has a PhD degree from the University of St. Gallen and is a certified auditor. Previously, he headed the corporate controlling unit of Bühler for five years and has been acting the CFO of the Vitra Group in Birsfelden, Switzerland since 2018.
“Mark Macus is the ideal successor for us. He possesses vast experience, knows the challenges of the capital goods industry, and is thoroughly familiar with Bühler. We are glad to have found Mark Macus for this task and look forward to welcoming him back”, says Bühler’s CEO Stefan Scheiber.
Following his retirement, Herzog plans to devote his efforts to supporting Bühler in developing new business models and strengthening its commitment to start-ups.
In addition to the acquisition of Haas and US-based Sputtering Components Inc., the funds were used for the development of new digital technologies and process solutions, as well as for strengthening Bühler’s innovative capabilities. The new factory and R&D facility for the feed industry in Changzhou, China was opened in 2018 and is in full operation. Bühler also expanded its global production network with the opening of a new battery application lab in Wuxi, China.
Asked about Bühler’s future expansion plans and whether the group favors brownfield investments over greenfield, Germar Wacker, CEO Consumer Foods said “there is both – there are greenfield and brownfield investments, as you see – Haas was brownfield. At the same time, Buhler has also built on locations, with start-ups, building greenfield businesses, so I think Buhler is open to both. […] When it comes to further expansions in terms of speculating about further investments, […] I think we have very good potential on our hands, but if we run across something that might make a very good addition, and in good terms, then, of course, why not?”