EQS-Adhoc
Cham Paper Group Holding AG: Full year 2016 - Progress in all areas - Seite 2
Paper division enjoys major improvement in results
After 2015, which was challenging in a number of respects, the 2016 financial year proved distinctly kinder despite a weaker market environment. Operating workflows stabilised following the end of
many years of transformation and raw material prices returned to normal levels, enabling a slight increase in revenue to CHF 196.9 million (previous year: CHF 193.4 million) and a significant
improvement in operating profit (EBIT) to CHF 9.9 million (previous year: CHF 0.7 million before the release of restructuring provisions). This equates to a return on sales of 5.1%, within the
target EBIT margin range of 5-12%.
The efficiency improvements made by concentrating production in Italy and a further fall in fixed costs mean that the mills are now in a sound position. Initial results from the measures to
optimise processes on the extensively modernised production systems are also coming through and are sending out positive signals for the future of the paper business. Innovations and efficiency
gains will continue to enhance the competitiveness of Cham Paper Group's solutions in 2017 as well.
Real estate division on track
The development plan for the Papieri site was completed. Following the preliminary review by the cantonal offices, the planning dossiers were made public in the spring. On 25 September 2016, voters
in the municipality of Cham approved the development plan and the associated partial change to the building regulations and the zoning plan. This marked the end of a planning phase which had lasted
over four years and in which the authorities and residents of Cham had been actively involved.
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In October, Specialized became the first company to move into the renovated former workshop building as a permanent commercial tenant, ensuring a steady rise in rental income together with the more than 70 other tenants making interim use of the site. This pushed the real estate division's revenue up by 64% to CHF 2.3 million in the year under review (previous year: CHF 0.8 million). This also includes the sale of a relatively small building from the portfolio for just over CHF 0.5 million. The division's operating profit (EBIT) came to CHF 769,000 (previous year: CHF 244,000).