Evolis manufactures plastic id card printers for id badge printing and personalization : student ID cards, loyalty programs, banking cards, transportation passes, membership cards, driving licences, identity cards, id card, employee badges, voting cards, health cards, access badges, and visitor badges. A badge can host data pertaining to its holder, with four-color photo-quality printing, and perform data encoding (magnetic stripe, smart card and/or contactless card). Evolis is specialized in creating these innovative id card printers. Evolis also markets the Badgy card printer , a turnkey solution to print badges on plastic cards , in small runs and without encoding options. Get more information on Badgy card printer on www.badgy.com .
Evolis also offers accessories and identification supplies through its subsidiary SOGEDEX ACCESSORIES.
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3 questions for Cécile Bélanger – Vice-President Evolis – October 2013
Sales were buoyant in the first nine months of the year (up 7.3%). What were the main drivers of this growth?
Yes, we recorded sales of €42.3 m, up 7.3%. There were several reasons for this. Evolis benefited from growing sales of its core range of Zenius and Primacy printers, the successful launch of Elypso, the new Project printer, and strong sales in the Asia-Pacific zone. Moreover, with soaring growth, consumables sales, which account for 40% of the Group's annual total, contributed significantly to dynamic overall sales.
First-half net profit was down. However, the profit margin seems stable. Can you explain this?
We have a very international business with sales in 125 countries, which makes us extremely sensitive to currency fluctuations. Net financial income was in fact down to a loss of €0.15 m in the first half of 2013, due to a negative currency effect and the non-recurrent impact of the hedge arranged for the Indian acquisition.
Nevertheless, our industrial quality allowed us to keep the gross margin at 53,4%, in line with Evolis' standards. Operating income came to €3.9 m, up 5.4% from the first half of 2012, accompanied by an H1 operating margin of 14.4%. During the first half, we beefed up the US IT and sales teams in order to achieve our growth target, thus raising personnel charges.
What is your forecast for year-end sales?
We expect to nudge the annual double-digit growth target on the back of buoyant growth in the Asia-Pacific zone, further deployment of the Zenius/Primacy range, the successful launch of Elypso and a steady increase in consumables sales.
We also expect to benefit from growth of the Large Accounts Division, the consolidation of Evolis India from 1 July 2013 and the first commercial results of the recent recruitment drive in the Americas. This increase in sales can be expected to help boost the operating margin in the second half.