Cham Paper Group Holding AG

EQS-Adhoc: HY 2016: A gratifying first six months

EQS Group-Ad-hoc: Cham Paper Group Holding AG / Key word(s): Half Year Results
HY 2016: A gratifying first six months

18.08.2016 / 07:00
Release of an ad hoc announcement pursuant to Art. 53 KR.

Cham, 18 August 2016

A gratifying first six months

The Cham Paper Group enjoyed a largely satisfying first half of 2016. The Group
increased revenues by 3% to CHF 103.8 million and posted an operating profit of
CHF 5.2 million. This meant that the lower end of the target margin range was
exceeded for the first time in a long time following a challenging
transformation process in the paper division. Net income amounted to CHF 3.3

In a slightly weaker market environment, the paper division benefited from the
efficiency improvements made so far in production and from a return to normal
raw material prices. In the real estate division, the public vote on the
rezoning and the development plan for the Papieri-Areal will be held on 25

Paper division
Although market conditions for the Cham Paper Group's speciality papers were
predominantly positive at the start of the year, they deteriorated somewhat as
the year progressed. A decline in the consumer goods segment was offset by an
increase in deliveries in the industrial release and digital imaging segments.

The relocation of production activities and the extensive modernisation of the
factories in Italy have now been completed successfully. The production managers
have launched new projects to generate additional synergy effects to be
leveraged in particular through process optimisation. For example, the Cham
Paper Group is to restart the in-house manufacturing of some basic papers used
in digital imaging.

The paper division posted a net revenue of CHF 103.4 million and maintained
volumes at an unchanged level. The 3.0% increase in turnover was due to slightly
higher prices, a better turnover mix and currency effects. Normalising raw
material prices and the efficiency gains achieved at the factories pushed gross
profit up to CHF 14.1 million (previous year: CHF 11.3 million). In addition,
fixed costs were further reduced and an operating profit (EBIT) of CHF 5.2
million was achieved (previous year: CHF 1.4 million). This equates to an
EBIT-margin of 5.0%, within the target margin range of 5-12%.

Sales in the consumer goods division fell year on year in volume terms. Demand
for food/non-food papers and for wet glue labels was particularly badly hit by
the Euro's rise against the US dollar and the economic slowdown in China. The
innerliner business (tobacco) saw a temporary increase in sales in the first few

Turnover from products for industrial applications (industrial release segment)
was significantly higher compared with the same period in the previous year. In
Europe particularly, the Cham Paper Group benefited from good market demand and
its well-known name. For instance, sales in the facestock product group
witnessed double-digit growth thanks to the leading market position enjoyed by
speciality papers for metallised labels. The industrial productions and labels
product group also reported an above-average increase in turnover. Sales of
tapes, however, declined slightly.

Following the challenging transfer of digital imaging products to Italy, this
sector, which is the Group's most promising, was able to focus entirely on
market activitiesonce more. Accordingly, volumes sold increased by 20% following
last year's period of stagnation. In particular, sublimation papers for the
textile market are enjoying steady growth in demand. However, market growth also
entails mounting price pressure, a situation to be offset by instigating various
measures to increase production efficiency.

Real estate division
The planning stage for the development of the Papieri-Areal is complete.
Following the preliminary review by the cantonal authorities, the planning files
were made public in the spring. On 25 September 2016, voters in the municipality
of Cham will vote on the development plan and the associated partial change to
the building regulations and the zoning plan. This marks the end of a planning
phase which has lasted over four years and in which the authorities and locals
in Cham have been actively involved.

More and more areas of the site that have become free are now being assigned a
temporary use, with over 50 commercial tenants from different sectors now based
on the site. The conversion of the listed workshop building is also progressing
well. In late autumn, the American bicycle manufacturer Specialized will become
its first permanent tenant, bringing around 40 employees to its new base in

Turnover from the real estate division in the first half of the year amounted to
CHF 850,000, up 16.1% year-on-year. The operating result at the end of the
period stood at CHF 29,000.

Balance sheet remains strong
The Cham Paper Group still has a healthy balance sheet. Shareholders' equity
amounted to 53.2% at the end of the period (end of 2015: 50.6%) and the Group
has cash and cash equivalents totalling CHF 35.6 million. The site in Cham
continues to be valued at acquisition cost.

Positive outlook across all divisions
The Board of Directors and the Executive Management Board expect the Group to
keep up its positive performance over the year as a whole and are maintaining
their stated aim of a clear improvement in operating profit in the region of
2014's EBIT result.

Like her colleagues on the Board of Directors, Susanne Oste, the new Delegate of
the Board since the General Meeting of Shareholders on 4 May, is confident in
the paper division's market position and potential for further growth and
optimisation. The Board of Directors' real estate committee is expecting voters
to approve the development plan for the Papieri-Areal. If accepted, the vision
of creating a new, vibrant district for Cham and a new pillar of the Cham Paper
Group's operations will become a reality.

Conference call, presentation and full half-year report
A conference call is scheduled for 9.00 a.m. today, 18 August 2016, with
Delegate of the Board Susanne Oste, Head of Finance & Controlling Daniel Grab,
and Head of the Real Estate Division Andreas Friederich, to discuss the
half-year results.
The dial-in number is +41 44 580 72 18 and the confirmation code is 9306349. A
brief presentation is available at
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

For information, please contact
Media and IR office Cham Paper Group Holding AG
Edwin van der Geest
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

Key figures at a glance

In CHF thousands, unless otherwise specified  H1 2016 H1 2015


Sales in tonnes                               76,263  76,664

Net turnover                                  103,834 100,799

EBITDA                                        9,608   5,861

as a % of net turnover                        9.3%    5.8%

EBIT before restructuring                     5,230   1,495

EBIT after restructuring                      5,230   2,971

as a % of net turnover                        5.0%    3.0%

Group profit                                  3,321   79

Earnings per share (in CHF)                   4.46    0.11


Net cash flow from operating activities       4,084   470

Shareholders' equity                          103,283 99,651

as a % of total assets                        53.2%   51.6%

(Net debt) / Net cash                         -4,546  1,486

Investments in tangible and intangible assets 4,889   4,553

Number of employees (FTE)                     383     409
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
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.

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

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


End of ad hoc announcement
Additional features:

Document title: Cham Paper Group H1/2016 Results

18.08.2016 News transmitted by Tensid EQS AG.


Language: English

Company:  Cham Paper Group Holding AG


          6330 Cham


Phone:    +41 41 785 33 33

Fax:      +41 41 785 31 50


ISIN:     CH0001931853

Valor:    -

Listed:   Foreign Exchange(s) SIX

End of News EQS Group News Service
493725  18.08.2016 

Weitere Meldungen: Cham Paper Group Holding AG

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