Meier Tobler Group (MTG) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 1.9% to CHF 545.9m; EBITDA declined 6.9% to CHF 48.5m, and net income fell 11.5% to CHF 27.1m.

• A strong H1, driven by exceptional heating-renovation demand, was followed by market normalization and logistics disruption at the new Oberbuchsiten service center.

• Logistics issues and backlogs were resolved, but customer confidence had not fully recovered; the proposed dividend rose to CHF 1.30 per share from CHF 1.20.

Financial highlights

• Net sales were CHF 545.920m versus CHF 556.339m in 2022; gross profit increased to CHF 262.0m from CHF 259.7m.

• EBITDA was CHF 48.470m, down 6.9%; EBIT was CHF 33.976m, down 9.1%; net income was CHF 27.145m, down 11.5%.

• Net income included CHF 10.320m of annual non-cash goodwill amortization; a CHF 2.371m gain on property disposals was recorded in other operating income.

• Operating cash flow was CHF 42.910m versus CHF 47.539m; year-end cash increased to CHF 18.798m from CHF 13.705m.

Outlook and guidance

• FY2024 Swiss construction market expected to contract slightly amid higher interest rates and construction costs; heat-pump demand expected to remain stable at a high level.

• First-two-month 2024 revenue was significantly below prior year; H1 revenue expected below prior year due to a high comparison base, with easier comparisons in H2.

• The stated objective is to regain prior-year profit levels; timing of revenue recovery remains uncertain as lost customer confidence is rebuilt.