Dätwyler (DAE) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was CHF 1,108 million, down 3.8% year-over-year, mainly due to weak demand in four out of five end markets and significant currency headwinds.

• Operational profitability stabilized, with an adjusted EBIT margin of 10.7% (up from 10.5% in 2023) due to active pricing and cost management.

• The Forward Now transformation program was launched, incurring CHF 37.9 million in one-time costs in 2024, targeting CHF 52 million cumulative profit improvement by 2027 and CHF 24 million annual uplift from 2028.

• New business wins and attractive order intake were achieved in Healthcare, Automotive, and Industrial segments, especially in high-value areas.

Financial highlights

• Net revenues declined 3.8% year-over-year to CHF 1,107.7 million; currency-adjusted decline was 1.4%.

• Gross profit margin increased to 21.5% from 20.9% in 2023, aided by lower cost of goods sold.

• Reported EBIT was CHF 80 million; adjusted EBIT (excluding transformation costs) was CHF 118 million, in line with prior year.

• Net result reported at CHF 31 million; adjusted net result at CHF 69 million, above last year’s CHF 67 million.

• Free cash flow remained strong at CHF 128 million, supporting debt repayment and dividend payout.

Outlook and guidance

• Healthcare destocking expected to end by mid-2025, with a return to long-term growth in injectables and higher single-digit growth.

• Automotive market forecasted for slight growth in 2025, with electrified vehicles as a key driver.

• Food & Beverage segment expected to continue growing, especially in aluminum capsules, supported by regulatory changes in EU packaging.

• Mid-term guidance targets annual organic growth in the high single digits and an EBIT margin of 17%+ under normal conditions.

• Dividend proposal of CHF 3.20 per bearer share.