Business Year 2016: CPH Group expands in Asia and posts a positive EBIT result
The CPH Group raised its net sales 3.5% to CHF 434.8 million in 2016. With actions consistently taken to further enhance efficiency, EBIT was improved CHF 27.7 million to CHF 5.9 million. The Chemistry and Packaging divisions continued to pursue their Asian growth strategy.
Perlen, 24 February 2017 – The CPH Group increased its annual net sales 3.5% to CHF 434.8 million for the 2016 business year. CPH successfully further pursued its strategy of reducing its dependence on the Swiss franc, expanding its Chemistry and Packaging divisions and strengthening its presence outside Europe. The expansions in Asia and the repositioning of the Chemistry Division were the prime developments in the business year.
Following the sale of the operating site in Uetikon (near Zurich) to the Zurich cantonal authorities, the Chemistry Division has largely completed the transfer of its production of standard molecular sieves to Jiangsu ALSIO Technology of China, which was acquired in 2016. The manufacture of further Uetikon product lines is being transferred to Zvornik in Bosnia and Herzegovina, where a new production facility is being built this year. And a further part of the Uetikon site’s production is being relocated to Rüti within Canton Zurich. “The realignment of our Chemistry Division should be complete by the end of this year,” says Peter Schildknecht, CEO of CPH Chemie + Papier Holding AG. “But it already had an impact on the division’s business trends and results in 2016, which show double-digit percentage net sales growth and a return to the black in its EBIT result.”
The economic trends in CPH’s prime target markets suggest further positive – albeit fragile – growth. The CPH Group will continue to press to expand its businesses in the faster-growing Asian markets in 2017. The realignment of the Chemistry Division should be completed by the end of the year. The Chemistry and Packaging divisions plan to further extend their present operations. The prospects for the Paper Division are heavily dependent on future market developments, and on the hard-to-predict factors of paper price and Swiss franc/euro exchange rate trends. The division will be seeking to further increase its sales volumes and to post a breakeven earnings result. The current efficiency enhancement endeavours will continue undiminished groupwide, with some CHF 36 million earmarked for corresponding investments in the course of the year. “Provided paper prices and currency exchange rates remain largely stable,” says Peter Schildknecht, “we expect to report higher sales and a slightly-improved operating result for 2017 for the Group as a whole.”