EMS-CHEMIE (EMSN) H2 2023 earnings summary

Executive summary

• FY2023 net sales were CHF 2,189m and EBIT CHF 493m; successful new business and specialty sales could not offset weaker demand and adverse currency effects.

• Net sales declined 10.4% YoY in CHF and 4.6% in local currencies; sales rose in all markets outside Europe in local currencies.

Financial highlights

• Net income was CHF 461m vs CHF 535m; EPS was CHF 19.56 vs CHF 22.75.

• EBITDA was CHF 542m vs CHF 661m; operating cash flow increased to CHF 576m from CHF 366m.

• Investments were CHF 49m vs CHF 94m in 2022.

Outlook and guidance

• FY2024 guidance: net sales at the prior-year level and EBIT slightly higher than in 2023.

• Continued difficult conditions expected in 2024, with geopolitical conflicts, higher freight costs, modest rate cuts and subdued consumer sentiment weighing on activity.