EMS-CHEMIE (EMSN) H1 2024 earnings summary

Executive summary

• Net sales reached CHF 1,087 million in H1 2024, down from CHF 1,183 million year-over-year, mainly due to a stronger Swiss Franc, but sales volumes, EBIT, and net income all exceeded prior year figures.

• EBIT rose to CHF 291 million (+4.2%), EBITDA to CHF 319 million (+4.4%), and net income to CHF 252 million (+2.1%) compared to H1 2023.

• Sales volumes and net operating income improved despite weak global economic conditions and unfavorable currency effects.

• Global sales offensive and focus on innovative specialties led to profitable new business and increased market share despite weak economic conditions in Europe and China.

• Successful launch of innovative application solutions contributed to profitable new business.

Financial highlights

• EBIT margin improved to 26.8% (from 23.6%), and EBITDA margin to 29.4% (from 25.8%) year-over-year.

• Net financial income was CHF -2 million (previous year: CHF 0 million).

• Equity attributable to shareholders increased to CHF 1,998 million, with an equity ratio of 82.7% (up from 80.4% at year-end 2023).

• Cash flow from operating activities was CHF 201 million, down from CHF 248 million in H1 2023.

• Investments totaled CHF 13 million, significantly lower than CHF 32 million in H1 2023.

Outlook and guidance

• Net sales for 2024 expected to be slightly below previous year due to currency effects; EBIT expected slightly above previous year.

• Ongoing economic challenges, geopolitical conflicts, and inflation are expected to continue impacting demand and costs.

• Continued investment program of over CHF 300 million to expand capacity and energy efficiency at the main Swiss site.

• Focus remains on innovation, sustainability, and global market expansion.