Global Sales rise by 5.1 per cent to EUR 2.2 billion, India sales growth by 18 per cent to Rs 388.6 crores
SCHOTT, a leading international speciality glass and technical ceramic materials manufacturer, has continued on its growth course in fiscal year 2018/19 (October 1, 2018, to September 30, 2019). Its key financial figures developed positively or remained at a solid level from the previous year.
“We are pleased with the past fiscal year. We were able to meet our forecasts from last year and continued the positive business development of previous years despite the difficult global economic situation,” emphasised Dr Frank Heinricht, Chairman of the Board of Management, at the Annual Results Press Conference.
The international technology group managed to increase its sales by 5.1per cent to around EUR 2.2 billion. The operating result (EBIT), which now stands at EUR 275 million, also improved at a consistent rate, resulting in a consolidated net profit of EUR 206 million. Business with special glass tubing for pharmaceutical packaging and the ampoules, vials, syringes and cartridges produced from it, contributed substantially to the successful year.
Investments in property, plant and equipment amounted to EUR 257 million in the fiscal year, an increase of 38 per cent over the previous year. Internationally, the largest investments in the fiscal year went to sites in India and China. More than EUR 21 million (Rs 165 crores) was invested into a new tank facility at the Gujarat manufacturing plant, which supplies the supreme quality FIOLAX glass tubing for pharmaceutic packaging.
At the presentation of the annual results, Dr Jens Schulte, CFO, SCHOTT pointed out that the equity ratio had remained at a solid level of 32 per cent. “The company is thus in a strong financial position and has sufficient scope to achieve organic growth as well as make acquisitions,” he noted.
The global number of employees rose to 16,200.
Record investments in India are also a result of exceedingly positive sales in the Asian market. India alone saw sales of approximately Rs 388.6 crores (EUR 49.5 million) – an increase of 18 per cent. Key growth drivers for India were SCHOTT’s Tubing, Pharma-Packaging and Flat Glass for cooking.
Sharing his views on the growth of the tubing and pharma packaging segment, Georg Sparschuh, President SCHOTT Glass India, shared, “With our Indian growth activities, we aim to further strengthen the local industry and the government’s goal of making India a global pharmaceutical hub. We have committed to invest about EUR 51 million (INR 400 crores) in our Gujarat manufacturing plant from 2018 till this year, in order to further cater
to the expanding domestic and Asian markets.”
After getting off to a good start in the first three months of its new fiscal year, SCHOTT expects sales to increase by between 3 per cent and 6 per cent for the year as a whole. The technology group expects impetus to come, among other areas, from the demand for speciality glass for pharmaceutical packaging and ultra-thin glass for the foldable mobile devices of the future.
In fiscal year 2019/2020, SCHOTT plans to invest EUR 320 million, the highest amount in the company’s history. Main international focus will remain on capacity expansions in the pharma packaging business in India and China.
To achieve this, the expansion of production capacity in the existing India plant aims to further strengthen its output by mid-2020. SCHOTT has committed additional investments of EUR 28 million for another tank facility which will be operational this year. With the new production facility, the plant’s capacity will be doubled, allowing the group to produce its highly specialised FIOLAX tubing material for both domestic and export demands.
At the same time, SCHOTT intends to intensify its efforts to protect the environment and
the climate. “With a view towards responsible and sustainable further development, we have set ourselves a clear goal: We want to make SCHOTT a climate-neutral company. During this fiscal year, we will set the course for this and consistently take the appropriate measures,” said Dr Heinricht, Chairman of the Board of Management.