Segment Key & Wall Solutions
5 min.Organic sales growth, higher profitability
Operational performance
Key & Wall Solutions generated total sales of CHF 198.9 million in the first half of financial year 2019/20, representing year-on-year organic sales growth of 2.8%. EBITDA stood at CHF 29.8 million, up 2.8% compared to the previous year; the EBITDA margin improved to 15.0% (previous year 14.7%) due to higher profitability in Movable Walls which was mainly driven by strong volume growth and overcompensated the lower performance of Key Systems.
Market development
The Key Systems Business Unit experienced lower sales in all regions. Sales were impacted by lower demand for key cutting machines and a weaker OEM automotive keys business globally, as well as fewer key replacements and a weaker automotive solutions business in the US. Due to lower volumes there was a negative impact on profitability, especially in the US. The business has started mitigation measures to protect its margins.
The Movable Walls Business Unit recorded strong double-digit sales growth, with the North American business being particularly strong, but all other regions contributed with strong growth as well. The Skyfold business, which was acquired in 2017, continued to perform very well including delivery of anticipated top-line synergies. There was also a continuous positive contribution from the measures to increase the automatization of the production site in Ocholt (GER). Key objective of the ongoing program is to sustainably further improve the cost base and efficiency of the European Movable Walls business.
The Key Systems Business Unit does not expect a significant change in the business environment for the second half of 2019/20. Weakness in the OEM automotive keys business will be offset to a certain extent by a major order for its Futura Auto key cutting machines. On top, the business will benefit from the launch of new products like SIX, a next-generation high-end electronic key cutting machine, and the launch of some new digital solutions, which are expected in the final quarter of the financial year 2019/20. SIX enables faster operations, higher automation and enhanced connectivity for locksmiths and digital products to reach current and future customers directly.
Based on a good order book, the Movable Walls Business Unit expects continued good growth. This will be driven by internal synergies and major new projects, including a new contract for the refurbishment of a major hotel in Las Vegas (USA).
Key figures – segment Key & Wall Solutions
CHF million, except where indicated |
| Reporting half-year ended 31.12.2019 | % |
| Reporting half-year ended 31.12.2018 | % |
| Change on previous year in % |
Net sales third parties |
| 191.5 |
|
| 190.1 |
|
| 0.7 |
Intercompany sales |
| 7.4 |
|
| 7.2 |
|
|
|
Total segment sales |
| 198.9 |
|
| 197.3 |
|
| 0.8 |
Change in segment sales |
| 1.6 | 0.8 |
| 11.6 | 6.2 |
|
|
Of which translation exchange differences |
| –3.9 | –2.0 |
| –0.6 | –0.4 |
|
|
Of which acquisition (disposal) impact |
| 0.0 | 0.0 |
| 5.1 | 2.8 |
|
|
Of which organic sales growth |
| 5.5 | 2.8 |
| 7.1 | 3.8 |
|
|
Operating profit before depreciation and amortization (EBITDA) |
| 29.8 | 15.0 |
| 29.0 | 14.7 |
| 2.8 |
Average number of full-time equivalent employees |
| 2,255 |
|
| 2,288 |
|
|
|
Segment sales (in CHF million) – Key & Wall Solutions
