Bobst (BOBNN) H1 2024 earnings summary

Executive summary

• H1 2024 sales rose 1.7% year-over-year to CHF 828.2 million, driven by higher services sales, while equipment and spare parts remained stable, but operating and net results declined due to higher costs and lower order intake.

• Order entries dropped 15% year-over-year, with backlog 35% lower than last year and 3% lower than year-end, reflecting delayed investments by large accounts.

• Drupa exhibition generated strong market interest, expected to support bookings in H2 2024 and into 2025, with a stronger second half anticipated.

Financial highlights

• Operating result (EBIT) fell to CHF 34.7 million from CHF 46.8 million year-over-year, mainly due to higher personnel, exhibition, and IT costs.

• Net result dropped to CHF 7.7 million from CHF 41.3 million, impacted by lower EBIT, BHS and IVG disposals, and adverse FX effects.

• Net debt stood at CHF 227.5 million at June 2024, up from CHF 218.2 million at year-end.

• Shareholders' equity ratio decreased to 21.6% from 25.7% due to a CHF 200 million bond issuance.

• Cash flow from operating activities was negative CHF 79.7 million, but investing and financing activities led to a net increase in cash of CHF 69.1 million.

Outlook and guidance

• Full-year 2024 sales and operating results expected below 2022 levels (CHF 1.84 billion sales, CHF 141.3 million EBIT).

• H2 2024 invoicing expected to exceed H1, but full-year revenue will be lower than 2022.

• Long-term targets reaffirmed: at least 8% EBIT margin and minimum 20% ROCE once loss-making segments break even.

• Machine orders expected to improve in H2 but may remain below prior year; Services & Performance to remain stable.

• Geopolitical and FX uncertainties may slow recovery, but new solutions and Drupa interest support outlook.