Orell Füssli (OFN) H1 2024 earnings summary

Executive summary

• Revenue increased to CHF 107.1 million in H1 2024, up from CHF 105.0 million year-over-year, driven by growth in Industrial Systems and Book Retailing.

• EBIT declined to CHF 4.6 million from CHF 5.4 million, with margin at 4.3% versus 5.2% last year, impacted by seasonal trends, higher costs, and product mix in Security Printing.

• Major new contracts were secured in Security Printing and Zeiser, and Procivis won significant tenders, including from the U.S. Department of Homeland Security.

• Book Retailing expanded with three new bookstores, acquisitions, and increased market share.

• Procivis launched new software and secured four new orders, including a major US government contract.

Financial highlights

• EBITDA was CHF 10.7 million, slightly down from CHF 11.0 million year-over-year.

• Net income for the period was CHF 1.8 million, down from CHF 5.0 million.

• Cash flow from operating activities improved to CHF 8.6 million from negative CHF 0.9 million.

• Cash and cash equivalents at period end were CHF 53.5 million, down from CHF 61.7 million at year-end 2023.

• Dividend payments totaled CHF 11.1 million in H1 2024.

Outlook and guidance

• Full-year revenue is expected to grow in the mid to upper single-digit percentage range, in or above the communicated growth corridor.

• EBIT margin for the full year is projected to be slightly lower than the previous year.

• Expects a business upturn in the second half of 2024 due to seasonal trends and strong order books.