HUBER+SUHNER AG Full-year results 2023
Media and analysts' conference
5 March 2024 | Full-year results 2023 | Media and analysts' conference | 2 |
Agenda
Overview of business year 2023 | Urs Ryffel (CEO) |
Financial results 2023 | Ivo Wechsler (CFO) |
Strategic focus, Trends, Outlook 2024 | Urs Ryffel (CEO) |
Questions and answers | |
5 March 2024 | Full-year results 2023 | Media and analysts' conference | 3 |
Solid EBIT margin despite marked decline in Communication
MCHF
2023 | 2022 | Δ % | |
Order intake | 821.4 | 975.4 | -15.8 |
Net sales | 851.1 | 954.6 | -10.8 |
Operating profit (EBIT) | 77.6 | 103.2 | -24.8 |
as % of net sales | 9.1 | 10.8 | |
Net income | 64.8 | 85.2 | -23.9 |
as % of net sales | 7.6 | 8.9 | |
- Order intake negatively impacted by overstocked customer inventories across many end markets, and communication market in a downward cycle
-
Net sales with organic decline of
6.3 % after record high in 2022 - Operating profit within EBIT medium- term target range of 9-12 %
- Industry with solid result - successful turnaround in Transportation - drop attributable to Communication segment
- Solid net income performance
5 March 2024 | Full-year results 2023 | Media and analysts' conference | 4 |
EBIT
Long-term comparison (10 years)
MCHF | ||||||||||
110.0 | 104.6 | 103.2 | 15% | |||||||
100.0 | ||||||||||
90.0 | 82.5 | 80.5 | ||||||||
77.6 | ||||||||||
80.0 | 12.1% | |||||||||
69.0 | 69.7 | 10.8% | 10% | |||||||
70.0 | 61.2 | |||||||||
9.5% | 9.7% | |||||||||
60.0 | 9.2% | 52.3 | 58.1 | 9.3% | 9.1% | |||||
8.3% | ||||||||||
50.0 | 7.5% | EBIT | ||||||||
7.4% | EBIT margin | |||||||||
40.0 | 5% | |||||||||
30.0 | ||||||||||
20.0 | ||||||||||
10.0 | ||||||||||
0.0 | 0% | |||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
5 March 2024 | Full-year results 2023 | Media and analysts' conference | 5 |
Industry segment
Reduced momentum and lower but still solid profitability
MCHF
2023 | 2022 | Δ % | |
Order intake | 258.1 | 310.5 | -16.9 |
Net sales | 285.3 | 298.0 | -4.3 |
Operating profit (EBIT) | 46.8 | 63.4 | -26.1 |
as % of net sales | 16.4 | 21.3 |
Key aspects
- Continued depletion of inventories at customers over the entire reporting year impacted the awarding of new orders
- Aerospace and defense reporting double-digit percentage growth in sales; both test and measurement and general industrial experienced decline in the double-digit range
- Orders for HPC experienced a distinct decline in the US market due to both uncertainties about the future charging interface standard and to state investment incentives linked to local value creation targets
5 March 2024 | Full-year results 2023 | Media and analysts' conference | 6 |
Communication segment
Declining volumes and profitability countered by cost measures
MCHF
2023 | 2022 | Δ % | |
Order intake | 283.4 | 380.6 | -25.6 |
Net sales | 280.3 | 385.9 | -27.4 |
Operating profit (EBIT) | 13.7 | 34.2 | -59.8 |
as % of net sales | 4.9 | 8.9 |
Key aspects
- Much weaker communications market around the world which impacted the entire industry
- Declining 5G rollouts in North America and continuous depletion of high inventories in supply chain resulted in significant slump
- Business picked up towards end of reporting period thanks to securing of new mobile communication rollouts in Asia in particular, and in the data center growth initiative
- Cost base lowered and capacities significantly adjusted to lower volumes
5 March 2024 | Full-year results 2023 | Media and analysts' conference | 7 |
Transportation segment
Net sales growth - four percentage points increase in profitability
MCHF
2023 | 2022 | Δ % | |
Order intake | 279.9 | 284.4 | -1.6 |
Net sales | 285.5 | 270.6 | 5.5 |
Operating profit (EBIT) | 25.9 | 13.7 | 89.5 |
as % of net sales | 9.1 | 5.1 |
Key aspects
- Turnaround after a three-year lean period following the global pandemic
- Railway subsegment with upturn in demand made positive contribution to net sales
- Automotive subsegment also reported growth in net sales thanks to positive contribution from electric vehicle and advanced driver assistance system growth initiatives
-
EBIT margin increased significantly to
9.1 % in the reporting year
5 March 2024 | Full-year results 2023 | Media and analysts' conference | 8 |
Net sales by market segment
Significant decline in Communication
MCHF | ||||||||||
400 | ||||||||||
350 | -4.3 % | +5.5 % | ||||||||
300 | -27.4 % | 34% | 33% | |||||||
250 | 2023 | |||||||||
200 | ||||||||||
150 | ||||||||||
100 | 33% | |||||||||
50 | ||||||||||
0 | ||||||||||
Industry | Communication | Transportation | Industry | ||
Communication | |||||
2022 | |||||
Transportation | |||||
2023 | |||||
5 March 2024 | Full-year results 2023 | Media and analysts' conference | 9 |
Net sales by region
Marginal change in EMEA and Asia-Pacific, major downturn in the Americas
MCHF | ||||||||||
500 | -4.2 % | |||||||||
400 | 26% | |||||||||
300 | +2.3 % | 2023 | 55% | |||||||
200 | -35.8 % | 19% | ||||||||
100 | ||||||||||
0 | ||||||||||
EMEA | Americas | Asia-Pacific | EMEA | ||
2022 | Americas | ||||
2023 | Asia-Pacific | ||||
5 March 2024 | Full-year results 2023 | Media and analysts' conference | 10 |
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Huber + Suhner AG published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 March 2024 06:02:25 UTC.
