Zurich, Switzerland – Swiss conglomerate Conzzeta, which owns FoamPartner, and is trying to sell it, increased its operating EBIT margin in 2019.
The group experienced a fall in sales of 11.7% in 2019. This is because it sold its glass processing business in the first quarter of the year. Adjusting for this, and at constant exchange rates the headline fall becomes 4.9%.
Selling the business gave Conzzeta an excess of cash, some of which it plans to give back to Class A shareholders.
Willome: wants to dispose of FoamPartner
The company's plan is to concentrate on its sheet metal processing business because 'despite the progress made, earnings in the Chemicals Specialties and Outdoor segments are still too low,' said Michael Willome, CEO.
In 2019, the Chemicals Speciality business, FoamPartner and Schmid Rhyner, generated sales of CHF 346.6m, down from CHF 382.9m in 2018. This division generated EBIT of CHF 14.2m in 2019 compared with CHF 5.8m in 2018.
Revenue in all regions and market segments. But greater efficiencies in the FoamPartner business enabled the EBIT margin to grow as FoamPartner worked to optimise business processes and business systems.
Despite its plans to divest the business, Conzzeta plans that FoamPartner will open a new processing centre in Duderstadt, Germany the first half of 2020. The company also has high hopes of its OboSky foams for the automotive sector launched in 2019.
The company expects 2020 to be a transitional year. 'The timing and the sale of both FoamPartner and Mammut business units remain to be seen,' according to a press release. In the current situation it is not possible to give a concrete financial outlook for 2020.
