Gurit (GURN) H2 2023 earnings summary

Executive summary

• FY2023 sales were CHF 459.9m, up 2.7% for continuing operations at constant FX despite strong CHF; adjusted operating margin improved to 4.5% from 2.3%.

• Free cash flow rose to CHF 27.2m from CHF 3.5m, while net debt declined to CHF 59.9m from CHF 84.0m.

Financial highlights

• Reported sales were CHF 459.9m, down 7.9% YoY from CHF 499.5m; sales grew 2.6% excluding M&A at constant exchange rates.

• Gross profit was CHF 74.8m, or 16.3% of sales, versus CHF 64.3m; EBITDA was CHF 34.6m, or 7.5% of sales, versus CHF 39.8m and 8.0%.

• Adjusted operating profit was CHF 20.6m, or 4.5% of sales, versus CHF 11.2m and 2.3%; adjusted figures exclude the Aero sale gain, restructuring and impairment charges.

• 2022 included an CHF 18.3m gain on the Aero sale; 2023 restructuring expense was CHF 0.9m, compared with CHF 5.1m in 2021.

Outlook and guidance

• FY2024 net sales guidance is CHF 435–485m, with an adjusted operating profit margin of 5–8%; the year is expected to be back-end loaded.

• 2024 volume growth of ~5% is expected from Western market-share gains, offset by material-price reductions, less China business and FX impact.

• Beyond 2024, Western wind markets and wider Energy Efficient Applications are expected to accelerate growth momentum.