Orell Füssli reports lower sales in the first half of the year
The Orell Füssli industrial and commercial group posted lower sales in the first half of 2019 following the sale of operations. However, the operating result was increased and a profit was also reported on the bottom line.
Sales fell by 9.6 percent to 115.2 million Swiss francs, the company announced on Friday. Operating profit at EBIT level reached 8.1 million Swiss francs, compared to 3.2 million in the same period last year. This includes special effects of 0.3 million (previous year -0.6 million). Net income was positive at 5.4 million Swiss francs, this after a figure of 0.0 in the previous year.
Following the sale of parts of the company in the previous year, the Zeiser Division is focusing exclusively on its core business of serializing banknotes and security documents. Sales here amounted to CHF 14.6 million. Compared to the comparable net sales of 8.2 million in the previous year, this corresponds to a significant increase of 78 percent, the company continued to write.
In security printing, sales fell by around 4 percent to 56.0 million and operating profit by around 2.9 percent to 6.6 million. Lower capacity utilization and an increase in the proportion of international customers in the product mix are cited as reasons.
In the Book Retailing Division, sales increased by 4.6 percent to 40.9 million Swiss francs. This resulted in a positive operating result of 0.4 million, following a loss of 0.9 million previously.
This was due to an improved market performance and the continued implementation of the transformation program, the statement added. The digital and online mail order business had grown and the branch business had been expanded with openings in Europaallee in Zurich and the Seedammcenter in Pfäffikon SZ.
Net sales at Orell Füssli's publishing companies were 8% lower than in the same period of the previous year. Orell Füssli speaks of weaker sales figures in the children's book sector. The "Globi" publishing house was unable to match the figures for the same period in the previous year, while the non-fiction sector showed a pleasing trend.
Orell Füssli continues to expect a "declining earnings situation" for 2019. In the largest security printing segment, orders for international customers would predominantly be produced in the second half of the year. Zeiser will be able to continue its positive development. A stable development is expected for the book trade. Once again, the Christmas business will determine the economic success of the financial year. (sda)
