Dottikon Es (DESN) H2 23/24 earnings summary

Executive summary

• FY23/24 sales growth was constrained by available production capacity; upfront hiring and training costs for new plants reduced margins ahead of planned growth resumption in FY24/25.

• Broad-based net sales reached CHF 326.3 million, up 2.1% YoY; operations are focused on one production site and a single reported operating segment.

Financial highlights

• Net sales were CHF 326.3 million, up 2.1% YoY; EBITDA was CHF 110.5 million, down 5.2%, and EBIT was CHF 89.8 million, down 6.4%.

• Net income was CHF 80.6 million, down 8.1% from CHF 87.7 million; the prior-year comparison included a one-time deferred tax liability revaluation benefit after a lower tax rate.

• Operating cash flow rose 14.7% to CHF 102.7 million, while investing cash outflow was CHF 150.1 million, versus CHF 101.5 million in FY22/23.

Outlook and guidance

• FY24/25 net sales are expected to exceed the prior-year figure as new plants begin operations and capacity constraints ease.

• The API drying plant and chemical multipurpose production plant are scheduled to become operational in 2024 and 2025, respectively; together, they will almost double available high-quality production capacity.

• Planned investment totals around CHF 700 million, including CHF 300 million in coming years; about half of that future spend is planned for FY24/25, with qualified production staff being recruited and trained.

• More than 200 jobs are planned in R&D, Production, Quality Management, Technology and Engineering; construction of a new chemical API pilot plant is to follow.