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Financial Commentary


Group net sales in the first six months of the 2017/18 financial year amounted to CHF 1,400.6 million, an increase of 19.3%. Organic sales growth compared to the previous year was 2.9%. Reported growth was also positively influenced by foreign currency effects (1.8%) and by acquisitions and divestments (14.6%).


During the period under review, EBITDA rose by CHF 35.5 million to CHF 210.9 million, improving the EBITDA margin to 15.1% (prior-year period 14.9%).

Acquisitions and divestments had a CHF 41.4 million positive impact on EBITDA, while organic business resulted in a reduction of CHF 8.9 million. The influence of currency translation on EBITDA came to CHF 3.0 million. The Group’s higher EBITDA margin was due in particular to the positive effect of acquisitions and divestments, as well as to cost savings resulting from the merger; these more than offset additional integration-related IT costs and unfavorable product mix effects. EBIT amounted to CHF 178.1 million during the year under review, while the EBIT margin increased to 12.7% (previous year 12.5%).

Financial result, ordinary result and income taxes

The net financial result came to CHF –22.5 million. The CHF 24.7 million of financial expense consisted mainly of interest payments, expenses for pension liabilities and exchange rate losses.

The pre-tax result came to CHF 155.6 million (prior-year period CHF 135.9 million). Income tax expense amounted to CHF 42.0 million, giving a tax rate of 27.0%. The tax rate for the first half of 2017/18 was lower than in the previous year (29.5%). This includes the expected influences of the US tax reform for the 2017/18 financial year, based on what is known so far. The assumption is that these influences will have a neutral effect overall in the 2017/18 financial year, because the positive effects of a lower US tax rate will be offset by onetime counter-effects. The assumption for the subsequent financial year – provided conditions otherwise remain the same – is that the US tax reforms will result in a lower income tax rate for dormakaba.

Net profit

dormakaba achieved a net profit of CHF 113.6 million for the period under review (previous year: CHF 95.8 million). The increase was mainly due to earnings growth from acquisitions and divestments, improved profitability and a lower income tax rate. Net profit after minority interests came to CHF 58.7 million, up from CHF 49.6 million in the previous year.

Cash flow and balance sheet

Cash flow from operations amounted to CHF 147.8 million, and free cash flow to CHF –56.1 million (previous year: CHF 129.3 million and CHF –83.5 million, respectively). This higher operational cash flow resulted primarily from the increased profitability of the individual segments. Cash flow from operations also includes outlays on the extensive restructuring in Germany. Cash flow from financing activities includes the refinancing of previous short-term financial debt through the placement in October 2017 of two bonds worth a total of CHF 680 million. Cash flow from investment activities includes CHF 44.8 million for property, plant and equipment, as well as CHF 101.0 million for acquisitions. As a result, on the balance sheet date of 31 December 2017, net financial debt stood at CHF 786.6 million, up from CHF 627.6 million at the end of the 2016/17 financial year.

As at 31 December 2017, dormakaba reported total assets of CHF 1,989.6 million. Within current assets, cash and cash equivalents amounted to CHF 181.2 million; inventories stood at CHF 451.1 million, and trade receivables at CHF 473.1 million. Non-current assets consisted mainly of property, plant and equipment worth CHF 444.0 million. The company reported total liabilities of CHF 1,875.1 million. Group equity came to CHF 114.5 million, and the equity ratio to 5.8%. Despite the positive net profit of CHF 113.6 million posted for the period under review, the company’s equity and equity ratio (CHF 183.1 million or 9.6% as at 30 June 2017) decreased because the CHF 106.7 million of goodwill from acquisitions and divestments was fully and directly offset against equity.

Currency effects

The average Swiss franc exchange rate against the Euro rose by 5.7% year-on-year from CHF 1.0843 to CHF 1.1466. The average exchange rate against the US dollar fell 1.3% from CHF 0.9880 to CHF 0.9748.