Sales increased by +0.9% in local currencies, but fell to CHF 530.6 million on a consolidated basis (-5.2% year-on-year) due to the strong Swiss franc. Global consolidated incoming orders even improved by +6.6% in local currencies and by +0.3% in consolidated currencies to CHF 547.8 million. After a difficult first half of the year in the project business due to the pandemic, business momentum accelerated in almost all markets in the second half of the year.

Growing project business

Interroll produced record volumes of conveyor rollers in the 2020 financial year. Consolidated sales in the "Rollers" product group amounted to CHF 106.0 million, which corresponds to a decrease of -3.8% compared to the prior-year period (CHF 110.1 million). At CHF 107.5 million, consolidated incoming orders were slightly down -0.3% on the previous year's figure of CHF 107.8 million.

Consolidated sales in the "Drives" product group amounted to CHF 156.5 million in the 2020 financial year, down -9.2% on the same period of the previous year (CHF 172.4 million). Consolidated incoming orders fell by -6.9% to CHF 157.6 million compared to CHF 169.2 million in the previous year.

The "Conveyors & Sorters" product group generated consolidated sales of CHF 221.5 million in the 2020 financial year, a slight decrease of -0.7% compared to the previous year (CHF 223.2 million). At CHF 233.2 million, incoming orders were 8.5% higher than in the same period of the previous year (CHF 214.9 million). A temporary downward trend in the first half of the year was noticeable here. In the second half of the year, Interroll was able to announce a major order for a leading supermarket chain for the delivery of more than 9 kilometers of Interroll Modular Conveyor Platform (MCP), including a record number of EC 5000 RollerDrive units for a new construction project in Germany.

In the year under review, Interroll recorded a decrease in consolidated sales in the "Pallet Handling" product group of -13.7% to CHF 46.6 million (previous year: CHF 54.0 million). Consolidated incoming orders fell by -9.2% to CHF 49.5 million (previous year: CHF 54.5 million). During the coronavirus crisis, important projects related to pallet handling in the warehousing sector were postponed but not canceled.

Different developments in the regions

In local currency, net sales in the EMEA region (Europe, Middle East, Africa) fell by - 5.1%. Consolidated sales amounted to CHF 287.0 million, down 10.6% on the previous year (CHF 321.0 million). Order intake fell by -3.9% compared to the previous year (CHF 312.0 million) and amounted to CHF 299.9 million. With a share of almost 54% of Interroll's total sales, EMEA remains the most economically significant region within the Group. The demands placed on suppliers in internal logistics are high. In addition to close customer relationships, industry knowledge and technical solution expertise, they require innovative responses to increasing complexity and new market trends. With the construction of a new plant in Mosbach, Germany, Interroll is preparing for future growth in the EMEA region.

Sales in North and South America amounted to CHF 158.1 million, 6.1% higher than in the previous year (CHF 149.0 million). With growth of 13.0% in incoming orders to CHF 165.6 million (previous year: CHF 146.6 million), strong momentum was noticeable. There were numerous new orders for sorters in particular (+83.8%), including orders for the new High-Performance Crossbelt Sorter (HPCS). Growth was also recorded for conveyor rollers and drives. This development was strongly influenced by the US market.

Following a strong previous year, Interroll's sales in the Asia-Pacific region rose by 1.7% in local currency despite the lack of major orders in the reporting year, but fell by -4.6% on a consolidated basis to CHF 85.5 million (previous year: CHF 89.6 million). Order intake declined to CHF 82.3 million (-6.3%; previous year: CHF 87.9 million). Belt curves recorded growing sales and incoming orders in the region. Following major projects in the previous year, demand for the Modular Conveyor Platform (MCP) was somewhat more subdued. As in previous years, China was the most important market for Interroll in the region. Very positive impetus came from Southeast Asia, which Interroll is increasingly focusing on. The region is increasingly benefiting from the globalization of the Interroll Group and the expansion and modernization of its own local production facilities. The Shenzhen plant moved to a new, more modern location at the beginning of the year and a new plant of its own is planned for Suzhou in 2022, which will increase production capacity.

Record result

EBITDA increased significantly to CHF 115.4 million (previous year: CHF 96.1 million). The EBITDA margin increased to 21.7% (previous year: 17.1%). Earnings before interest and taxes (EBIT) reached CHF 94.1 million (+30.1% above the previous year's figure of CHF 72.3 million), which corresponds to an EBIT margin of 17.7% (previous year: 12.9%). Earnings rose sharply by 28.0% to a record level of CHF 71.7 million. The earnings margin reached 13.5% (previous year: 10.0%).

Solid balance sheet performance and stronger cash flow

Total assets increased to CHF 468.8 million as at December 31, 2020, up 7.7% on the figure at the end of 2019 (CHF 435.1 million). Equity increased to CHF 312.0 million, with an equity ratio of 66.5% (end of 2019: 69.9%). Net financial assets increased by 19.9% to CHF 92.2 million (previous year: CHF 76.9 million). Operating cash flow increased by 23.4% to CHF 122.9 million (previous year: CHF 99.6 million) as a result of the record result and the good management of current assets. Customer prepayments for projects were the main contributor to the good and significantly lower net working capital compared to the previous year. Gross investments amounted to CHF 51.3 million (previous year: CHF 33.6 million). Investments were made in particular in the company's second own production plant, which was completed at the Hiram site in the USA, and the construction of the Mosbach plant in Germany, which made considerable progress in the reporting year. Detailed planning for the new plant in Suzhou, China, has been completed.

Positive performance of the Interroll share price and further increase in dividend proposal

With a closing price of CHF 2,695.00 on December 30, 2020, the Interroll share was 23.9% above the 2019 year-end price (CHF 2,175.00). The excellent annual result for 2020 prompted the Board of Directors to increase the distribution again and propose a dividend of CHF 27.00 (+20.0%) per share (previous year: CHF 22.50) to the upcoming Annual General Meeting.

Outlook: Cautiously optimistic despite mixed short-term signals

The Group has made a positive start to the 2021 financial year. Important core markets, such as Germany, are still suffering from the effects of the Covid-19 pandemic. Nevertheless, the medium-term market demand for Interroll solutions remains disproportionately strong and Interroll's sustained expansion in the market goes hand in hand with the need to increase capacity. In addition, Interroll is relying on an expanded technology platform, which will be supplemented in 2021 by a new sorter solution for the basic segment and a new generation of belt curves.

"We look forward to maintaining our high pace of innovation in the coming months and years," explains Paul Zumbühl, CEO of the global Interroll Group. "Our strong financial situation allows the Group to take advantage of opportunities, to continue to grow sustainably in the medium term and to continue to invest resolutely in capacity expansion and digitalization."