Georg Fischer (GF) H2 2023 earnings summary

Executive summary

• 2023 sales reached CHF 4.026bn; organic growth was 3.7%, with H2 organic growth flat. EBIT margin was 9.8% excluding Uponor and acquisition-related comparability effects, matching the prior-year record.

• Uponor consolidation began on 1 November; integration started successfully, with synergy potential confirmed.

• 2025 targets were raised to a 10–12% EBIT margin, 13–15% EBITDA margin and 20–24% ROIC.

Financial highlights

• Reported sales were CHF 4,026m versus CHF 3,998m in 2022; comparable sales growth was 0.7%, while organic growth was 3.7%.

• EBITDA was CHF 486m, down 4.0% reported; EBITDA margin was 12.1% reported and 12.7% comparable.

• EBIT was CHF 365m, down 6.7% reported; EBIT margin was 9.1% reported and 9.8% comparable.

• Net profit was CHF 242m; net profit attributable to shareholders was CHF 235m versus CHF 276m in 2022.

• Free cash flow was CHF 201m; free cash flow before acquisitions and divestments was CHF 134m.

Outlook and guidance

• 2024 outlook calls for further organic growth, with gradual improvement expected despite subdued economic conditions.

• 2024 profitability is expected within the revised 2025 strategic range.

• Revised 2025 targets: sales CHF 5.0–5.5bn, EBIT margin 10–12%, EBITDA margin 13–15% and ROIC 20–24%.

• Uponor synergies are expected to reach EUR 40–50m annual run rate in 2027; CHF 25–30m of one-off costs are expected through 2027.