Bucher Industries (BUCN) H1 2024 earnings summary

Executive summary

• Order intake and sales declined sharply year-over-year, with agriculture most affected, reflecting a volatile macro environment and cyclical downturn.

• Operating profit margin remained above 10%, with profit for the period at CHF 145 million, down 27% year-on-year.

• Financial position remains solid with an equity ratio of 62% and net cash of CHF 186 million; continued investments in organic growth and innovation.

• Bucher Municipal achieved a strong EBIT margin improvement; leadership changes included a new Chairman and Division President.

Financial highlights

• Order intake fell 22% to CHF 1.2 billion for H1 2024; net sales reached CHF 1.7 billion, down 11% year-over-year.

• Operating profit (EBIT) was CHF 178 million (10.3% margin), down 27.9% year-over-year; EPS fell 27.3% to CHF 14.07.

• Net cash position at CHF 186 million at end of June; operating free cash flow negative due to seasonal factors and dividend payments.

• R&D costs stable at CHF 67 million (3.4% of net sales); CAPEX for H1 was CHF 59–61 million.

• Return on net operating assets (RONOA) after tax at 19.1%, close to the 20% target.

Outlook and guidance

• Demand expected to remain subdued and volatile in H2 2024, especially in agricultural machinery; no quick recovery anticipated.

• Group expects lower sales and profit for 2024, with EBIT margin to remain in double digits but below prior year.

• Kuhn Group and Bucher Hydraulics expect further declines in sales and margins; Bucher Municipal expects stable sales and further EBIT margin improvement but below 9%.

• Continued focus on cost-saving measures, organic growth investments, and innovation.