Bobst Group has confirmed that order entries in the first six months of 2024 were as expected 15% below the level reached in 2023.
Sales increased slightly and were at CHF 828m, compared to CHF 815m in the first half of 2023. The operating result (EBIT) was CHF 35m, compared to CHF 47m in 2023. The net result reached CHF 8m, down from CHF 41m in the previous year. Sales and results for the first half-year were according to expectations. Net debt was CHF 228m compared to CHF 218m at the beginning of the year. Order backlog at the end of June was 35% lower than in previous year and 3% lower than at the end of 2023.
After a successful drupa, the Group expects a good second half of the year, but there are also risks which can negatively impact the full year results. In particular the uncertain geopolitical situation and further slowdown of the industry in some regions.
During the first half of 2024, consolidated sales amounted to CHF 828.2m, representing an increase of CHF 13.6m, or 1.7%, compared with the same period in 2023. Volume and price variances had a positive impact of CHF 25.2m, or 3.1%. The exchange rates had an overall negative impact on sales of CHF 15.2m, or -1.9%. An improvement of CHF 3.5m, or +0.4%, came from the acquisition of Dücker Robotics srl, completed on 28 April 2023.
In term of order entries, the Business Unit Printing and Converting experienced a slow first half year in 2024, as projected 24% lower than in June 2023. This was mainly driven by large Key Accounts postponing their capital investments, after recent strong years. Also global market consolidation through mergers of larger groups has a delaying effect. The Americas region remains stable over all industries, whilst Asia, the Middle East and Africa regions are continuing as a strong growth engine. Central Europe however, is not yet in recovery status.
The heavy impact of geopolitical uncertainties and instability represent our greatest challenges. A dedicated cross-functional task force is mitigating this risk, by leveraging our global scale and operational capabilities, as a part of the BUPC transformation program. The company says it expects a general market recovery trend in the second half of the year, which is also underlined by the high number of project awards during drupa, as well as other successful customer events in the Americas and Asia.
The company said machine orders for the full year will improve compared to the first six months of 2024, but might remain below previous year level, while Business Unit Services & Performance should continue at the same level. The uncertainties caused by the geopolitical situation and fluctuating foreign currencies might slow-down the recovery, while interest created with the new solutions presented at drupa will for sure support the recovery.
As announced on 27 February, the Group expects 2024 full year sales and operating result (EBIT) to be lower than the levels reached in 2022, which was CHF 1.84 bn sales and CHF 141.3m operating result (EBIT).
The long-term financial targets of at least 8% operating result (EBIT) and a minimum 20% return on capital employed (ROCE) are confirmed.
