Cham Paper Group Holding AG

EQS-Adhoc: Pleasing business performance in the first half of 2017


EQS Group-Ad-hoc: Cham Paper Group Holding AG / Key word(s): Half Year Results
Pleasing business performance in the first half of 2017

17-Aug-2017 / 06:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
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Pleasing business performance in the first half of 2017
Cham, 17 August 2017
 

There has been an encouraging trend in both divisions over the first six months
of the 2017 financial year. The paper division is benefiting from the excellent
reputation that its products enjoy on the market, with distribution focusing
increasingly on the sale of high-margin speciality papers. Efficiency gains at
the company's mills are also increasing profitability. The real estate division
achieved higher rental income and is developing according to plan, with a focus
on the planning process for the first stage of construction. Slightly lower
revenue of CHF 99.2 million (previous year: CHF 103.8 million) resulted in an
operating profit of CHF 9.9 million (previous year: CHF 5.2 million). Net income
came to CHF 7.1 million (previous year: CHF 3.3. million).

Further progress in the paper division
The paper division enjoyed high demand in every market segment in the first half
of the year and thus benefited from the outstanding quality of Cham Paper
Group's products and services. This allowed the Group to focus on selling
high-margin speciality papers. For instance, sales of digital imaging papers
outperformed the market, rising by 15% (revenue share 15%). Sales of speciality
papers for industrial applications (industrial release segment) also increased
by 3% (revenue share 38%). The revenue share of the consumer goods segment was
reduced slightly to 47%. Overall the paper division generated revenue of EUR
91.6 million (previous year: EUR 94.0 million). Production volumes were just
below the previous year's levels due to the switchover to TRANSJET products
(digital imaging) on the company's own base paper. In terms of tonnage, volumes
dropped to lower basis weights as a result of the market trend.

At the same time, after the major efforts of the past few years, efficiency
gains are proving increasingly profitable in production, while gross margins
have risen considerably. The partial hedging of pulp costs largely compensated
for the sharp rise in pulp prices and this effect should be partially offset in
the second half of the year too now that sales prices have increased. A slight
dip in operational costs resulted in an operating profit of EUR 9.4 million for
the paper division, a figure which has doubled year on year (previous year: EUR
4.8 million) and corresponds to a pleasing EBIT margin of 10.3%.
 

Scheduled development in the real estate division
Preparations are under way for two commissioned studies for the first two
substages of the site's development. Once complete, this stage will see around
80 owner-occupied flats, 130 rental flats and 30 affordable homes built. These
are expected to go on sale from 2020/2021 together with some 9,000 m2 of service
and commercial space. Around CHF 180 million is being invested in the first
stage, while the long-term financing has been secured on favourable terms. The
rental income generated by existing buildings rose by 28% to TCHF 1.089 million.
The lessee Specialized moved into the renovated workshop building on 1 October
2016, which had a particularly positive effect on rental income. The division
was also able to make greater interim use of free space. The operating profit
for the first half of the year amounted to TCHF 484 (previous year: TCHF 29).

The Tour de Suisse got under way in glorious weather, attracting thousands of
cycle racing fans to the Papieri-Areal from 9 to 11 June. The new website
www.papieri-cham.ch was launched to coincide with the event and will provide
information about further developments on the site in future. The Zug cantonal
council ruling on approving the development plan as well as the partial change
to the building regulations and zoning plan is due to be announced after the
summer holidays.
 

Further increase in shareholder's equity ratio
Cham Paper Group further bolstered its balance sheet in the reporting period.
Free cash flow of CHF 6.0 million was generated. The shareholders' equity ratio
stood at 59.2% at the end of the first half of the year (end of 2016: 55.4%),
while net cash amounted to CHF 5.4 million. The site in Cham will continue to be
valued at acquisition cost for the time being.
 

Functional change on the Executive Management Board
Luis Mata, who has played a significant role in restructuring the company over
the past five years and has managed the Italian mill for the past two years as
COO, is to take over the role of CFO of the entire Group with effect from 1
September 2017 and will thus support both divisions in their next phase of
growth. Delegate of the Board and CEO of the paper division Susanne Oste shall
assume direct responsibility for mills, sales and innovation.
 

Outlook
The Board of Directors and Executive Management Board are optimistic that the
financial year will continue to develop well. They anticipate that the paper
division will see continued positive market demand and further efficiency gains
in production in the second half of the year, although higher pulp costs will
curb margin development. The commissioned studies for the first two substages
are scheduled to begin in the real estate division.


Conference call, presentation and full half-year report
A conference call is taking place at 9.00 a.m. today, 17 August 2017, with
Delegate of the Board Susanne Oste, Group CFO Luis Mata and Head of the Real
Estate Division Andreas Friederich, to discuss the half-year results.
The dial-in number is +41 44 580 72 69 and the confirmation code is 2450097. A
brief presentation is available at
http://ir.champaper.com/cgi-bin/show.ssp?id=500&companyName=champaper&language=G
erman


The complete half-year report (in German) can be downloaded from the Investor
Relations section of our website (see 'Financial Reports') or via the following
link:
http://ir.champaper.ch/cgi-bin/show.ssp?id=311&companyName=champaper&language=Ge
rman


Key figures

In CHF thousands, unless otherwise specified              

1 January to 30 June                          2017       2016

Sales in tonnes                               76,748     76,263

Net turnover                                  99,244     103,834

EBITDA                                        14,262     9,608

as a % of net turnover                        14.4%      9.3%

EBIT                                          9,948      5,230

as a % of net turnover                        10.0%      5.0%

Group profit                                  7,059      3,321

Earnings per share (in CHF)                   9.48       4.46

Net cash flow from operating activities       7,231      4,084

Investments in tangible and intangible assets 1,393      4,889

                                                          

                                              30/06/2017 31/12/2016

Shareholders' equity                          113,033    108,118

as a % of total assets                        59.2%      55.4%

(Net debt) / Net cash                         5,437      3,248

Number of employees (FTE)                     386        375
 


For information, please contact
Media and IR office Cham Paper Group Holding AG
Edwin van der Geest
E-Mail:media@cham-group.comoderinvestor@cham-group.com
Phone: +41 43 268 32 32 / +41 79 330 55 22
Valor / ISIN / Ticker: registered shares Cham Paper Group Holding AG 193 185 /
CH0001931853 / CPGN


Cham Paper Group
The Cham Paper Group is a leading manufacturer of coated speciality papers.
Surface finishing lends papers properties that generate added value for its
customers. The company, which was founded in 1657, has three sites, one in
Switzerland (Cham) and two in Italy (Carmignano and Condino), and a global sales
network.
The decision to focus on development and sales and discontinue paper
manufacturing in Switzerland has made way for a new project on the factory site
in the centre of Cham. The Cham Paper Group is developing an eleven-hectare
quarter there called the Papieri-Areal.
The Cham Paper Group (stock exchange symbol: CPGN) is listed on Switzerland's
SIX Swiss Exchange.

Disclaimer
This communication may contain statements about the future that use words such
as, for example, "believe", "assume", "expect" and other similar expressions.
Such statements about the future are subject to known risks, uncertainties, and
other factors, which can cause the true results of the company to differ
significantly from those which are expressly or implicitly assumed in these
statements. In view of these uncertainties, the reader should not depend on this
type of statement about the future. The company gives no undertaking whatever to
update such statements regarding the future, or to adapt them to future events
or developments.
 

This press release is issued in English and German. The German version is
binding.

Additional features:


Document:http://n.eqs.com/c/fncls.ssp?u=HCLDPCFDGS
Document title: CPGN_HY17_17082017
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End of ad hoc announcement------------------------------------------------------

Language: English

Company:  Cham Paper Group Holding AG

          Fabrikstrasse

          6330 Cham

          Switzerland

Phone:    +41 41 785 33 33

Fax:      +41 41 785 31 50

E-mail:mail.cham@cham-group.com

Internet: www.cham-group.com

ISIN:     CH0001931853

Valor:    -

Listed:   SIX Swiss Exchange



 

End of Announcement EQS Group News Service

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601877  17-Aug-2017 CET/CEST
 



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