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Schlatter Industries AG / Key word(s): Annual Results SCHLATTER INDUSTRIES AG - SIX SWISS EXCHANGE: STRN - ISIN: CH0002277314 S c h l i e r e n, 28 March 2023. In the 2023 financial year, the Schlatter Group generated net sales of CHF 128.6 million (2022: CHF 110.5 million) and order intake of CHF 113.1 million (2022: CHF 128.1 million). The order backlog as at 31.12.2023 stood at CHF 73.9 million (31.12.2022: CHF 89.4 million). The operating result (EBIT) for the period under review was positive at CHF 7.1 million (2022: CHF 5.5 million). Consolidated net profit stood at CHF 5.1 million (2022: CHF 3.5 million).
Demand for Schlatter products normalized in the 2023 financial year. In particular, demand for reinforcing mesh production systems and weaving machinery for the paper industry dropped following a period of market overheating. By contrast, after-sales volumes continued to grow, while the number of industrial mesh production systems and rail welding systems sold increased significantly. Suppliers’ delivery problems eased in the second half of the year, but the resulting backlogs weighed on productivity and gave rise to substantial additional costs. Prices of sourced materials largely stabilized at a higher level, while further appreciation of the Swiss franc put additional pressure on earnings.
Net sales were 16.4% higher year on year and the operating result (EBIT) was also higher at CHF 7.1 million (financial year 2022: CHF 5.5 million). The Schlatter Group closed the 2023 financial year with a high order backlog, with the result that capacities in the 2024 financial year will largely be utilized.
Welding segment 2023 In the 2023 financial year, the welding segment achieved order intake of CHF 95.0 million (2022: CHF 99.9 million) and net sales of CHF 100.8 million (2022: CHF 96.0 million). The order backlog as at 31.12.2023 stood at CHF 56.7 million (31.12.2022: CHF 62.5 million).
The segment recorded lower yet satisfactory order intake on a year-on-year basis. The fall-off in orders for reinforcing mesh production systems was sufficiently offset by good order intake in rail welding machinery as well as industrial mesh production systems. Given the current order backlog, existing capacities in the 2024 financial year are already well utilized. The welding segment should contribute to a further increase in net earnings for the financial year.
Weaving segment The weaving segment recorded order intake of CHF 18.1 million (2022: CHF 28.2 million) and net sales of CHF 27.8 million (2022: CHF 14.5 million). The order backlog as at 31.12.2023 stood at CHF 17.2 million (31.12.2022: CHF 26.9 million).
The above-average level of demand in previous periods was driven by orders from China. The Chinese market is now in a saturation phase, and incoming orders have returned to normal. Despite significantly higher material costs and increases in official wage rates, the Münster site increased its sales and earnings in the 2023 financial year. The Münster site is already operating at full capacity for the 2024 financial year. To boost productivity, a comprehensive package of measures was devised.
Outlook for the Schlatter Group The Schlatter Group has successfully launched product innovations, stepped up its marketing effort and expanded its service business. The Group expects net sales to be slightly lower in the 2024 financial year. On the other hand, Schlatter aims to increase its operating result (EBIT).
At the annual general meeting on 7 May 2024, the Board of Directors will propose the payment of capital reserves of CHF 1.00 per share for the 2023 financial year, instead of a dividend (previous year: dividend of CHF 0.50).
The full 2023 Annual Report can be downloaded from the Schlatter Group website: http://www.schlattergroup.com/de/investor-relations/geschaefts-_und_semesterberichte
Further information Schlatter Industries AG Werner Schmidli Chief Executive Officer Mobile +41 79 343 62 62 werner.schmidli@schlattergroup.com
Agenda
Schlatter Group Key figures
1 Net financial position (debt): cash and cash equivalents less interest-bearing liabilities 2 Gearing: net debt divided by equity 3 Cash flow from operations less purchases of tangible assets and intangible assets plus sale of tangible assets 4 Net result divided by average equity 5 Determined on the basis of dividend-entitled shares 6 Instead of a dividend, the Board of Directors will propose a capital reduction at the Annual General Meeting Schlatter Group (www.schlattergroup.com) ------------------------------ End of Inside Information |
| Language: | English |
| Company: | Schlatter Industries AG |
| Brandstrasse 24 | |
| 8952 Schlieren | |
| Switzerland | |
| Phone: | +41 44 732 71 11 |
| E-mail: | info@schlattergroup.com |
| Internet: | www.schlattergroup.com |
| ISIN: | CH0002277314 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 1869317 |
| End of Announcement | EQS News Service |
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1869317 28-March-2024 CET/CEST
