Interroll (INRN) H2 2024 earnings summary

Executive summary

• CEO transition executed after long-term planning, appointing Marcus Asch for his strategic and operational expertise.

• 2024 saw stable order intake at CHF 519.5m (+3.2% in local currency), with sales at CHF 527.1m (-5.3%, -2.4% in local currency).

• Strategic focus on regaining lost customers, expanding in emerging markets (notably India), and leveraging a modular, scalable product approach.

• Emphasis on innovation, digitalization, and operational excellence, with new products and production systems launched.

• EMEA sales grew 8.2%, while Americas and Asia-Pacific declined by 18.2% and 24.2% respectively.

Financial highlights

• Order intake stabilized at CHF 519.5 million, flat year-over-year, with 3.2% growth in local currency; book-to-bill ratio 0.99.

• Sales declined 5.3% in CHF (2.4% in local currency) to CHF 527.1 million, mainly due to weak project business and currency effects.

• EBITDA down 5.6% to CHF 100.4 million (19.1% margin), EBIT down 7.3% to CHF 77.8 million (14.8% margin), net result CHF 62.5 million (-5.7%).

• Free cash flow at CHF 77.4 million, down 15% from prior year, but still strong at 14.7% of sales.

• Dividend proposed at CHF 32 per share, unchanged for the third consecutive year, with payout ratio rising to 43.7%.

Outlook and guidance

• 2025 expected to be a transition year, with book-to-bill ratio now above one, signaling potential sales recovery as project business rebounds.

• Focus on strategic partnerships, verticals (airports, e-commerce, CEP), and emerging markets.

• Continued innovation with MCP Play and Multibelt Switch launches.

• CapEx expected to remain stable; profit margins to fluctuate with product mix.

• Operational excellence through cost fitness, new production system rollout, and supply chain localization.