There aren’t too many publicly traded companies in the pro AV market so when one announces earnings, it should be paid attention to as a bellwether of the market. Today Barco announced financial results for the six month period ended June 30, 2019. Orders and sales increased in each division resulting in a consolidated growth of 7.5% and 8.3%, respectively. In Entertainment substantial cinema-uptakes in North America and Western Europe produced a 12.6% increase in orders. In Enterprise, double digit growth in orders and sales for both ClickShare and Control Rooms propelled the division’s strong performance. On the strength of a solid orderbook at the start of year, healthcare sales grew across the portfolio, led by the surgical segment.
EBITDA margin expanded 3.3 percentage points compared to 1H18 reflecting continued gross profit margin improvements and increased operating expense efficiencies. Each division posted higher EBITDA margins compared to the first half of 2018.
During the first half of 2019, Barco began to implement its “fit to lead” program, the company’s efficiency and capability building plan. The company also continued to advance a number of key growth initiatives. Under the “In China for China” program, Barco’s strategy to more effectively penetrate the Chinese healthcare market, Barco opened its R&D and manufacturing center in Suzhou. As evidence of its sustained emphasis on innovation, Barco also launched the 4K laser Series 4 cinema-projector platform and began initial deliveries under contracts won during the semester.
The company held its 2019 Capital Markets Day in May during which it outlined its “next chapter” path to sustainable profitable growth that calls for building more hardware, software and services solutions along with increasing monetization of the company’s installed base.
Barco CEO, Jan De Witte said, “Barco entered 2019 poised to resume top-line growth after a recent period of flat sales and, through solid execution, posted year-over-year sales growth and margin expansion for the first semester. We are encouraged to see that the steps we have taken to establish a stronger business foundation while investing in innovative solutions and strengthening go-to-market strategies are bearing fruit.
“The combination of a growing orderbook and healthy sales funnels at the mid-year point gives us confidence that we will deliver mid to high single digit sales growth for the year and another year of EBITDA margin improvement.”
Barco is here.