Wincor Nixdorf AG completed the first six months of fiscal 2013/2014 with a decline in net sales and growth in operating profit. Net sales fell by 3% to €1,230 million (previous year: €1,266 million).
Operating profit (EBITA) rose by 3% to €68 million (€66 million). The EBITA margin increased by 0.3 percentage points to 5.5% (5.2%). Profit for the first six months of the fiscal year grew by 2% to €45 million (€44 million). In the outlook for fiscal 2013/2014 as a whole Wincor Nixdorf reaffirmed its projection of 4% growth in net sales and a 17% rise in EBITA to €155 million. Despite some developments in the emerging markets that had not been foreseeable at the beginning of the fiscal year, the company considers its forecast to be attainable.
"We remain committed to expanding our activities in the emerging markets, despite the fact that business has become more challenging there for Wincor Nixdorf," said CEO & President Eckard Heidloff when asked to comment on the company's performance. With the currencies of some of the key emerging markets having depreciated against the euro, customers' local investment budgets had declined and had in turn led to lower revenues for Wincor Nixdorf. Among these countries, for example, were Russia and Turkey. Having made an important contribution to overall growth in the last fiscal year, these markets had been expected to do so again in 2013/2014. As expected, the slight economic improvement observable in major industrialized countries has not yet had any substantial impact on business.
Net Sales up in Retail Segment
Net sales in the Banking segment fell by 6% to €778 million (€828 million) in the first half of fiscal 2013/2014. In the second quarter, net sales were down by 1% year on year. EBITA for the Banking segment totaled €51 million (€55 million), which was 7% down on the figure posted for the same period a year ago. Net sales generated in the Retail segment rose by 3% in the first six months of the fiscal year, reaching €452 million in total (€438 million). In the second quarter, net sales were 1% lower compared to the same period a year ago. EBITA generated in the Retail segment rose by 55% to €17 million (€11 million) in the reporting period.
Growth in Germany and Americas
In Germany, net sales rose by 2% to €290 million (€284 million) in the first six months, thus accounting for 24% (22%) of the Group's total net sales. In the second quarter, net sales in Germany stood at €140 million (€130 million), which corresponds to growth of 8%. At €577 million (€631 million), Europe (excluding Germany) saw a year-on-year decline in net sales of 9% in the first six months of the current fiscal year. This was attributable primarily to a downturn in business in the emerging European markets.
In the first half of the fiscal year, Europe (excluding Germany) contributed the largest part of total net sales for the Group at 47% (50%). In the second quarter of the fiscal year, net sales in Europe (excluding Germany) were 13% lower at €273 million (€314 million). In Asia/Pacific/Africa, net sales remained largely unchanged year on year at €216 million (€215 million) in the first six months of the fiscal year. The share of total net sales attributable to the Asia/Pacific/Africa region thus also remained unchanged at 17%. Second-quarter net sales in Asia/Pacific/Africa rose by 6% to €101 million (€95 million). In U.S. dollars, the Americas recorded a 13% increase in net sales during the first half of the fiscal year. Translated into euros, this is equivalent to growth of 8% to €147 million (€136 million). Thus, the proportion of Group net sales generated in the Americas was 12% (11%). In the second quarter of the fiscal year, net sales in the region were up 34% at €78 million (€58 million).
Increase in Proportion of Net Sales from Software/Services
Net sales attributable to the Hardware business rose by 7% year on year to €575 million (€616 million). In the Software/Services business, net sales were up 1% at €655 million (€650 million). The share of total net sales attributable to the Hardware business fell to 47% (49%) in the reporting period. Correspondingly, the proportion of total net sales derived from Software/Services rose to 53% (51%).