Consolidated revenue was up by 14% from DKK 12,566 million in 2015 to DKK 14,369 million in 2016. The increase was due predominantly to the acquisitions of Specma and GPV, which were consolidated from 1 January and 1 April 2016, respectively. Fibertex Nonwovens and the former Hydra-Grene also contributed, while Fibertex Personal Care reported flat revenue and BioMar’s revenue fell slightly despite an increase in volumes sold.
EBIT rose from DKK 831 million in 2015 to DKK 1,038 million in 2016. BioMar and the acquisitions of Specma and GPV were the main drivers of the EBIT improvement. Fibertex Nonwovens and the former Hydra-Grene also contributed, while Fibertex Personal Care reported a moderate decline relative to the very good performance of 2015.
Highlights
Realised in 2016:
Outlook for 2017:
BioMar
BioMar reported slightly lower revenue, but a considerable EBIT improvement to DKK 581 million (2015: 447) driven by operational improvements and a number of special factors. BioMar expects to increase revenue and improve its core earnings in 2017, but EBIT is expected to be lower than the 2016 figure.
Fibertex Personal Care
Fibertex Personal Care reported flat revenue with a slight drop in EBIT. For 2017, the company expects to grow its revenue and to report EBIT in a range close to the 2016 EBIT.
Fibertex Nonwovens
Fibertex Nonwovens reported improvements in both revenue and EBIT. For 2017, the company expects revenue to continue to improve and EBIT to be higher than the 2016 EBIT.
Hydra/Specma
Hydra/Specma reported improvements in both revenue and EBIT in its Danish operations and a significant effect from the Specma acquisition. For 2017, the company expects moderate revenue growth and EBIT in a range close to the 2016 EBIT.
GPV
GPV reported improvements in both revenue and EBIT. Effective from 1 March 2017, GPV acquired EMS company BHE. The transaction has lifted the 2017 revenue forecast, whereas integration costs are expected to keep EBIT at just below the 2016 EBIT.
Statement by Jens Bjerg Sørensen, President of Schouw & Co.:
”The Schouw & Co. Group had a remarkable year in 2016. Achieving a number of milestones while generating EBIT of more than DKK 1 billion and a cash flow from operations of DKK 1.6 billion, Schouw & Co. has built a very strong financial position. We are seeing the positive effects of recent years’ investments in preparing our business for the future, and we have an attractive platform for continuing to grow. However, these strong results and our strong capital structure also bring with them a certain responsibility – and we are confident that we at Schouw & Co. and our portfolio businesses have the potential to continue creating long-term value.
It lies firmly rooted in Schouw & Co.’s DNA for us to think in terms of and invest in long-term opportunities, but we also understand and respect the importance of every single penny and of having the ambition to develop our group in the short term as well. As an international business, at Schouw & Co. we fully accept the responsibility that comes with operating globally. Creating value in a proper and reliable manner always pays off in the long term.
Long-term investment will also a key factor for Schouw & Co. in 2017, as we expect to allocate additional resources to upgrading organisations and managements. We will be focused on projects involving innovation and future value creation. Even business-to-business industrial players need to think about digitalisation and to be adaptable and ready for change.
Schouw & Co. has a strong, solid platform. We regularly assess attractive investment opportunities involving either our existing portfolio companies or the potential of adding new businesses to the portfolio. Our performance and our capital structure involve a certain responsibility, and we stand well prepared to continue creating long-term value.”
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