Forbo (FORN) H2 2024 earnings summary

Executive summary

• Persisting geopolitical uncertainty and adverse market conditions impacted both divisions, with Flooring Systems showing resilience and Movement Systems underperforming, especially in the U.S.

• Negative currency effects weighed on net sales and EBIT, but net cash position increased and strategic investments progressed.

• Innovative and sustainable products were launched, and efficiency measures helped protect margins.

Financial highlights

• Net sales declined by 4.5% to CHF 1,122.0 million compared to 2023, with a 1.7% decrease in local currencies.

• EBIT margin remained double-digit at 10.7% (2023: 11.1%), with EBIT down 7.2% to CHF 120.6 million.

• Net profit fell 7.0% to CHF 95.1 million; EPS decreased to CHF 67.45.

• Net cash position rose to CHF 109.1 million (2023: CHF 69.0 million); equity ratio improved to 64.1%.

• Free cash flow was CHF 91.8 million, down from CHF 115.9 million due to lower operating cash flow.

Outlook and guidance

• Expectation of a slight year-on-year increase in net sales (in local currencies) and profit for FY 2025, assuming stable geopolitical and economic conditions.

• Continued focus on innovation, capacity expansion, and sustainability initiatives to drive competitiveness.