Barco (Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) announced results for the six month period ended 30 June 2019.
First half 2019 financial highlights
– Incoming orders at 533.8 million euro (+7.5%; at constant currencies +4.1%)
– Sales at 496.4 million euro (+8.3%; at constant currencies +4.5%)
– EBITDA of 67.6 million euro (+16.1 million euro) or 13.6% of sales (+3.3 ppts)
– Net income at 43.1 million euro (+15.8 million euro)
Executive summary
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.
Quote of the CEO, Jan De Witte
“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,” concluded Jan De Witte, CEO of Barco.
Outlook 2019
The following statements are forward looking and actual results may differ materially.
Given the performance for the first half of the year – and assuming a stable global economic environment and currencies at current levels – management forecasts a full year outlook with mid to high single digit sales growth for the year and with an EBITDA margin performance in line with the first half.
Read the full press release here
About Barco
Barco designs technology to enable bright outcomes around the world. Seeing beyond the image, we develop visualization and collaboration solutions to help you work together, share insights, and wow audiences. Our focus is on three core markets: Enterprise (from meeting and control rooms to corporate spaces), Healthcare (from the radiology department to the operating room), and Entertainment (from movie theaters to live events and attractions). In 2018, we realized sales of 1.028 billion euro. We have a global team of 3,600 employees, whose passion for technology is captured in 400 granted patents.
