3Q19 @Barco Trading Update
Today Barco (Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) announced the results for the third quarter ended September 30, 2019.
CEO, Jan De Witte was quoted as saying “As demonstrated by the healthy sales growth produced by each division year to date and the strengthening order book, Barco continued in the third quarter to execute well on its sales and marketing initiatives. I’m particularly pleased by our accelerating surgical and cinema-sales, and ClickShare’s sustained growth. Given its first-half performance and orderbook heading into the fourth quarter, Control Rooms remains on plan for the year despite a softer third quarter. As a result, I’m confident that Barco is on track to achieve sales growth in the mid to high single digit range for the year and a solid EBITDA margin improvement year-over-year”.
Sales for the quarter were 266.9 million euro, an increase of 7.3% compared to 248.7 million euro for the third quarter of 2018. At constant currencies, sales growth was 4.5%.
Incoming orders booked during the third quarter of 2019 were 275.6 million euro, an increase of 13.3% compared to the third quarter of 2018. At constant currencies, growth in orders was 10.5%.
Orderbook as of September 30, 2019 stood at 359.1 million euro, a 12.4% increase compared to the third quarter of last year. This represents the fourth consecutive quarter of orderbook growth and it was mainly driven by healthy demand for cinema replacement projects in the European and North-American regions.
Entertainment registered a double digit increase in orders and sales fueled by cinema, with Venues & Hospitality contributing to growth for the quarter after a softer first half of the year.
Enterprise division sales were slightly lower due to a decline in sales for Control Rooms partially offset by sustained double-digit growth for ClickShare. Control Rooms sales performance reflects a slowdown in sales of UniSee after six quarters of strong launch driven growth, and in push-outs by customers on some larger corporate display projects mainly in the APAC region.
The Healthcare division produced double-digit growth in sales driven by strong demand in both the
surgical and the diagnostic segment.
Based on a strengthening order book, robust sales funnels and the overall performance year-to-date, management still expects 2019 to deliver mid-to-high single digit sales growth for the year. In terms of EBITDA margin for the full year, management is now targeting an improvement of close to 2 percentage points year-over-year.
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