Strengthening Revenue and Robust Profitability in the Fourth Quarter of 2015
Company Reports Strong Financial Performance in Q4 2015 and Full Year 2015
The company has announced impressive financial results for the fourth quarter of 2015 and the full year 2015. The gross margin for the full year stood at 19.0%, with a 5% organic growth in gross profit, reiterating the company's steady financial performance.
The strong operational activities in Q4 2015 led to a gross margin of 19.2%, reflecting a 6% organic growth in gross profit. The company also reported good cash flow from operating activities and a strong balance sheet for the same period.
It is worth noting that EBITA in Q4 2015 is a non-US GAAP measure that excludes amortization and impairment of goodwill and intangible assets. The EBITA for Q4 2015 was EUR 310 million, up 9% organically, and the EBITA margin (excluding one-offs) was 5.5%, up 20 bps.
The organic growth, as well as the EBITA margin improvements, were driven by several factors. These include positive volume growth in key geographic markets and segments, enhanced operational productivity and cost control, strategic exit of lower-margin businesses, and market-specific demand strength.
In Q4 2015, the company incurred integration costs of EUR 3 million and there was a write-down of capitalized software of EUR 45 million. In comparison, in Q4 2014, one-offs comprised restructuring costs of EUR 23 million.
The full year 2015 revenues were EUR 22.0 billion, up 4% organically. The SG&A (excluding one-offs) for the full year 2015 was up 3% organically, while for Q4 2015, it was up 4% organically.
The proposed 2015 dividend was CHF 2.40 per share, up 14% compared to last year. The company also announced a recommended cash offer of 365p per share for Penna Consulting Plc.
In FY 2015, one-offs comprised integration costs of EUR 11 million, contractual obligations related to changes in the Executive Committee of EUR 10 million, and the write-down of capitalized software of EUR 45 million. In FY 2014, one-offs comprised restructuring costs of EUR 37 million.
The company's financial performance for Q4 2015 and the full year 2015, excluding the impact of currency fluctuations, acquisitions, divestitures, and one-offs, is a testament to its strong operational performance, strategic decisions, and market positioning. The company continues to focus on organic growth initiatives, productivity improvements, and cost management to drive its future performance.
The strong financial performance reported by the company in Q4 2015 and the full year 2015 has sparked interest in potential investors. By focusing on organic growth initiatives, productivity improvements, and cost management, the company aims to maintain its financial and business success.
