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2.2 Income statement
At CHF 131.9 million, net revenue from sales to customers is CHF 7.7 million below the prior year’s level. Net revenue generated by Industrial Systems decreased by CHF 14.6 million as a result of disappointing new orders towards the end of 2016 and continuing into the first quarter of this year. In contrast, Security Printing posted an increase of CHF 9.0 million. This increase was largely due to orders involving a high ratio of materials contributing to net revenues. Book Retailing recorded a decrease of CHF 2.6 million, attributable to the general book trade environment.
The cost of materials increased by CHF 2.5 million, while the costs of external services (primarily relating to production within Security Printing) decreased slightly by CHF 1.2 million. As a result, the costs of materials/external services increased from 43.4% to 46.0% of operating income. The increase is primarily attributable to Security Printing because of the mix of products (production involving a high ratio of materials).
Personnel expenditure increased slightly compared with the prior year by CHF 0.1 million. This is due to the growth in Security Printing. Other operating expenses decreased by CHF 2.3 million because of the restructuring within Book Retailing and special items relating to Industrial Systems in 2016. Depreciation was up by CHF 0.2 million, due to slightly higher investments in Security Printing in the second half of 2016.
There was a reduction in interest income in the financial result due to the low interest rates. Security Printing recorded an interest credit in connection with a waived interest liability on a former tax liability. The movements in foreign currencies were balanced between expenses and income. Financial expenses mainly comprised bank charges. Hence, a positive financial result of CHF 0.6 million was achieved.
The tax rate at around 22.5% moved closer to its normal level.