Bossard Group enjoyed sales growth and set new records in all market regions last year.
Sales in fiscal year 2017 rose 13.1% to CHF 786.2 million, fuelled by double-digit growth rates in all Europe, America and Asia. In Europe, Q4 sals grew 16.1% (57% of revenue). In America, the Group’s existing business contributed to the 18.4% increase in sales while Bossard’s Asia business posted a 12.8% sales increase, benefiting from recent years’ investments in new capacities.
Bossard said the growth surge confirmed its strategy is working, with investments to develop new capacities and targeted acquisitions consolidating market positions in Europe and America. All the acquisitions of the past few years were successfully integrated into the corporate structure, contributing significantly to the Bossard Group’s overall positive development, the group said.
Increasing growth dynamics in Europe
In Europe, the Bossard Group boosted sales by 10.8% in fiscal year 2017 to CHF 444.9 million (in local currency: +9.3%), with growth rates climbing steadily from one quarter to the next. Sales from October to December, for example, grew 16.1% to CHF 110.3 million (in local currency: +13.9%) compared to the same period in 2016. Bossard said it was largely due to past years’ investments that consolidated our market position. All countries contributed to the positive performance, with most posting double-digit growth rates.
Major strides in the America business
As in the previous year, Bossard made strides in America: The 18.4% sales increase (to CHF 220.3 million) is attributable to organic growth as well as acquisitions. In particular, business with the largest US electric vehicle manufacturer continued to thrive, with the company launching production of a new model in Q3. This expansion in production will fuel further growth for the Bossard Group in 2018. Business with a major customer in the agricultural technology sector likewise added to our solid performance. Finally, Arnold Industries, acquired in 2016, also contributed to the growth in sales. The reduced momentum in the America business in the second half of 2017 was due to two factors: First, Bossard’s business with the above-mentioned US electric vehicle manufacturer faced a steep comparative baseline from the same period in 2016; and second, the consolidation effect from the acquisition of Arnold Industries was lower in the second half of the year.
Organic growth in Asia
In Asia, too, the Bossard Group benefited from past development efforts that substantially expanded capacities in China, Thailand, South Korea and Malaysia. This increased presence in the industrial zones in Asia laid the groundwork for increasing sales in this market region by 12.8% to CHF 121.0 million (in local currency: +12.3%). Bossard posted double-digit sales growth in nearly all countries – particularly in China, its most important market in Asia.