LEM (LEHN) H2 2024 earnings summary

Executive summary

• FY 2023/24 sales were CHF 405.8m, essentially flat YoY in CHF and up 7.2% at constant exchange rates; EMEA and Rest of Asia led growth.

• EBIT margin declined to 20.0%, in line with the long-term average, amid higher input costs, investment and severance costs; bookings continued to normalize from the prior-year peak.

Financial highlights

• Sales were CHF 405.8m (-0.1% YoY reported); gross profit was CHF 189.2m (-1.6%), EBIT CHF 81.1m (-12.1%), and net profit CHF 65.3m (-13.3%).

• Q4 sales were CHF 89.2m (-14.9% YoY), EBIT CHF 11.8m (-50.6%), and net profit CHF 9.9m (-50.7%).

• Sales at constant exchange rates rose 7.2%, driven by underlying demand and normalized supply chains; reported sales were affected by significantly negative currency effects in Asia.

Outlook and guidance

• FY 2024/25 market development is expected to be moderate, with customer inventory reductions remaining a headwind, particularly in Renewable Energy and Automation.

• Based on customer forecasts, market conditions are expected to improve in H2 2024/25.