EQS-Adhoc

Orell Füssli AG: Robust business model confirmed in a difficult environment - Seite 3

In the past financial year several changes were implemented at the company group level. Orell Füssli Holding Ltd. and its wholly-owned subsidiaries in Switzerland were merged to form the new Orell Füssli Ltd. in order to simplify the legal structure and to optimise internal processes. Particularly Finance and IT operations were aligned and the group's corporate design was revised. Orell Füssli has also selectively strengthened expertise and diversity on the Board of Directors and at senior management levels.

Security Printing Division

The Security Printing Division achieved net sales of CHF 87.3 million in 2020 (previous year CHF 101.2 million). This corresponds to a reduction of 14% compared to the previous year. The decline in net revenue is due in particular to a changing product mix with a high share of the export business with less complex banknotes (63% of total sales volume). Despite a significant reduction in fixed costs compared to the previous year, the decline in gross profit could, as expected, not be fully offset,. The operating result (EBIT) for 2020 amounts to CHF 5.5 million (previous year CHF 9.2 million), which corresponds to a margin of 6.3%.

In the past year, the Security Printing Division was able to acquire new customer projects in the international market despite the difficult market conditions caused by the Corona pandemic. The successful positioning as a provider of high-quality and economically attractive banknotes was maintained in a highly competitive market environment. In the year under review, major investments (CHF 13.7 million) were made in the modernisation of the production equipment. The current year will be marked by further investments in infrastructure and innovation, the acquisition of new orders from the international market and the preparations for digital products in the identity business. The order backlog at the end of 2020 ensures a solid capacity utilisation for 2021. However, due to the changing product mix, high price pressure in the market and ongoing Corona influences in sales, Security Printing expects lower earnings for 2021.