Arbonia (ARBN) H2 2023 earnings summary

Executive summary

• FY23 net revenues were CHF 1,081M, down 10.1% reported and 9.0% FX- and acquisition-adjusted, amid lower volumes and negative FX.

• Adjusted EBITDA was CHF 88.7M, down 21.1%, with an 8.2% margin; adjusted net result was CHF -1.3M versus CHF 23.9M in 2022.

• A structured sale process for Climate is at an advanced stage; a potential closing is expected in H2 2024, subject to antitrust approval.

Financial highlights

• FY23 EBITDA margin fell to 8.2% from 9.4% in 2022; lower standard-product volumes, salary increases, energy and logistics costs, and weaker productivity weighed on results.

• Adjusted EBIT was CHF 12.1M versus CHF 41.4M in 2022; higher depreciation and PPA amortisation also pressured EBIT.

• Reported continuing-operations revenue was CHF 504.6M and the continuing-operations result was CHF -17.2M.

• Operating cash flow rose CHF 127M to CHF 101M; free cash flow was CHF 2.4M after CHF 99M of investments.

Outlook and guidance

• FY24 outlook assumes stable CHF/EUR rates: Climate expects organic growth and improved profitability; Doors expects revenue at the 2023 level and better profitability.

• External factors may improve, but new construction is not expected to recover in 2024; renovation could improve during the year.

• 2028 Doors ambition: CHF 900M revenue and 15% EBITDA margin, including acquisitions; revenue ambition is CHF 680M without acquisitions.