SFS Group has generated a strong half-year result as sales of CHF 957.8 million were generated in the first half of the year, which corresponds to year-on-year growth of 23.8%. The EBIT margin amounted to 17.1%.
SFS generated gross sales of CHF 957.8 million in the first half of 2021, which corresponds to year-on-year growth of 23.8%. Currency effects reduced sales growth by –1.2%. Compared with the first half of 2019 - before the COVID-19 pandemic - gross sales increased organically by 10.1%.
The EBIT margin of 17.1% in the first half of 2021 corresponds to a year-on-year increase of 7.9 percentage points. This development was supported by effective cost management and the fact that higher prices for raw materials and transport were passed on through the value chain. Innovation programs and investments made to implement growth projects continued unchanged during the reporting period. Capital expenditure for the first half year to CHF 46.9 million, which corresponds to 4.9% of sales (prior-year period: 7.3%).
Investment to expand production capacity at the sites in Hallau (Switzerland) and Heerbrugg (Switzerland), have proceeded and the additional space will be occupied over the course of the year (Hallau) and 2022 (Heerbrugg). To ensure that it can continue to provide sufficient capacity for implementation of customer projects in Asia, SFS is currently planning to expand the production capacity of the factory in Nantong (China). The expansion will enlarge the production area by approx. 70%. Work will start in the first quarter of 2022 and the space will be ready for occupancy 18 months later.
Both divisions in the Fastening Systems segment succeeded in taking advantage of the dynamic market environment and pent-up demand due to the pandemic. In the first half of the year the Riveting division completed the relocation of its Chinese production site from Nansha (China) to Nantong (China), the production platform also used by other divisions.
Assuming a continuous dynamic development in the second half of the year, SFS expects sales growth to a level of around CHF 1.9 billion for the full 2021 financial year at an EBIT margin of approximately 15%