SCHOTT AG, leading international specialty glass and technical ceramic materials manufacturer, has continued on its growth course in the fiscal year 2018 – 19 (1 October 2018 to 30 September 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,” emphasized Dr Frank Heinricht, chairman of the Board of Management, at the Annual Results Press Conference.
According to the press statement, the international technology group managed to increase its sales by 5.1% to around EUR 2.2 billion (approximately Rs 1.5 trillion). The operating result (EBIT), which now stands at EUR 275 million (approximately Rs 2000 crore), also improved at a consistent rate, resulting in a consolidated net profit of EUR 206 million (approximately Rs 1500 crore). 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 significantly higher, India and China among top markets for SCHOTT
Investments in property, plant, and equipment amounted to EUR 257 million (approximately Rs 2000 crore) in the fiscal year, an increase of 38% over the previous year. Internationally, the largest investments in the fiscal year went to sites in India and China. More than EUR 21 million (approximately Rs 165 crores) was invested into a new tank facility at the Gujarat manufacturing plant, which supplies the FIOLAX glass tubing for pharmaceutic packaging.
At the presentation of the annual results, Dr Jens Schulte, chief financial officer pointed out that the equity ratio had remained at a solid level of 32%. “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.
Strong growth in India
Record investments in India are also a result of exceedingly positive sales in the Asian market. India alone saw sales of EUR 49.5 million (approximately Rs 388.6 crores) – an increase of 18%. 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 of SCHOTT Glass India, shared, “With our Indian growth activities, we aim to strengthen further the local industry and the government’s goal of making India a global pharmaceutical hub. We have committed to invest about EUR 51 million (approximately Rs 400 crores) in our Gujarat manufacturing plant from 2018 till this year, to further cater to the expanding domestic and Asian markets.”
In addition, SCHOTT also entered the Indian smartphone market last year. Its premium cover glass Xensation Up was introduced in the country as part of the new range of Vivo premium smartphones.
Outlook for the fiscal year 2019-2020 – Key focus on the expansion of capacities in India, the setting of the course towards climate neutrality
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 to 6% for the year as a whole. The technology group expects impetus to come, among other areas, from the demand for specialty 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 (approximately Rs 2200 crore), the highest amount in the company’s history. The main international focus will remain on capacity expansions in the pharmaceutical 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 (approximately Rs 200 crore) 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 specialized 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.