Barco announced results for the six and twelve month periods ended 31 December 2016.
Fiscal year 2016 financial highlights:
- Incoming orders at 1.09 Billion Euro (+ 3.6%)
- Sales at 1102.3 million Euro (+ 7.0%)
- Gross profit margin at 34.4% (+ 1.6 ppts)
- EBITDA of 88.0 million Euro (+ 13.9 million euro) or 8.0% of sales (+ 0.8 ppts)
- EBIT1 of 36.6 million Euro (+34.9 million euro) or 3.3% of sales (+3.2 ppts)
- Net income of 11.0 million Euro
- Free cash flow of 57.4 million Euro
- Net financial cash position of 286.6 million Euro
- Proposal to increase the dividend to 1.90 euro per share from 1.75 Euro
CEO Jan De Witte comented on the earnings, “Barco delivered solid sales growth and improved profitability for 2016. Initiatives to lower product costs and a favourable product mix led to a gain in gross profit margin versus 2015 and a year-over-year increase in EBITDA margin, even with significant investments in growth initiatives during the year,” said Jan De Witte, CEO.
“Across our divisions, we advanced technology initiatives, expanded our channel network and increased sales of newer product lines. In Entertainment we continued to leverage our global leadership position in digital cinema, including strong results in China, while propelling sales of laser projectors globally in line with emerging demand for premium formats and technology upgrades. Notable in Healthcare, we saw a promising uptake of our network-enabled visualization solutions for the operating room and single-digit growth across the portfolio. In enterprise, strong momentum in ClickShare boosted the divisional profits while sales growth was offset by weaker sales in Control Rooms,” added De Witte.
“For 2017, our goal is to continue generating sales and profitability growth through further leveraging our technology, software and services. We will continue to drive gross margin accretion initiatives and make choices across business activities, while continuing to invest in innovation,” concluded De Witte.
This is EBIT before non-recurring charges and under the new capitalization methodology. Management considers EBIT (before non-recurring) to be a relevant performance measure in order to compare results over the period 2014 to 2016, as it excludes non-recurring items. Had Barco not changed its accounting treatment of product development costs, the EBIT margin for 2016 would have been approximately 5.4 percent compared to 5.0 percent in 2015 and 4.4 percent for 2014 (Calculated as EBIT before non-recurring and excluding amortizations less capitalized product development expenses for prior periods).