Double-digit sales growth in local currencies in all regions – negative currency effects on sales and earnings – results also hit by significant rise in cost of raw materials - Seite 3

Operating profit before depreciation and amortization (EBITDA) came to CHF 106.3 million (prior-year period: CHF 109.9 million), corresponding to a decline of 3.3%. The EBITDA margin stood at 15.9% (prior-year period: 17.6%). Operating profit (EBIT) decreased by 4.3% to CHF 78.6 million (prior-year period: CHF 82.1 million), resulting in an EBIT margin of 11.8% (prior-year period: 13.2%).

Group profit
On the basis of the lower operating profit, a marginally higher tax rate and a slightly higher financial expense, Forbo posted a Group profit of CHF 60.3 million (prior-year period: CHF 63.5 million), corresponding to a decline of 5.0%. Due to the share buyback program completed in 2022 and the associated cancelation of shares, earnings per share (undiluted) increased by 5.1% and amounted to CHF 42.60 (prior-year period: CHF 40.52).

Equity ratio remains strong
Equity at end of June 2022 stood at CHF 532.4 million (year-end 2021: CHF 521.8 million), corresponding to an increase of 2.0%. The equity ratio was 52.2% (year-end 2021: 53.2%).  

Solid balance sheet
After cancelation of the 165,000 treasury shares from the share buyback program 2019–2022 in the second quarter of 2022, Forbo held net cash in the amount of CHF -36.0 million (year-end 2021: CHF 56.2 million). This reduction is largely attributable to the dividend payment, the share buyback and the distinctly higher operating working capital due to the substantial increase in raw material prices. In addition, Forbo held treasury shares worth CHF 93.2 million, based on the share price at end of June 2022.

Performance of the divisions
The Forbo Flooring Systems division reported net sales of CHF 456.2 million in the first half of 2022 (prior-year period: CHF 423.1 million). All regions reported a double-digit sales growth in local currencies: Asia/Pacific showed the clearest increase, followed by the Americas and then Europe, which just reached double digit figures. The increase was achieved despite construction materials becoming scarcer and more expensive again, which led to the postponement of some projects. In Europe, France, Italy, Spain, Portugal and Poland recorded above-average growth. Sweden and Great Britain were also very successful. Growth in high single-digit figures was achieved by the DACH region. The Netherlands saw moderate growth. In the Americas, the USA, Canada and Brazil continued to show pleasing positive momentum. In Asia/Pacific, sales presented a very mixed picture. Japan, South Korea, Southeast Asia and Turkey saw above-average growth, Australia remained at the previous year's level and China recorded a strong decline in sales due to the COVID lockdowns.