Zehnder Group (ZEHN) H2 2023 earnings summary

Executive summary

• 2023 sales fell 6% to €762.1m amid weaker demand; EBIT declined 16% to €60.2m, while operating cash flow rose 48% to €87.9m.

• Ventilation grew to 58% of total sales despite a slight annual decline; radiator sales and profitability weakened more sharply.

Financial highlights

• Sales decreased 6% YoY: acquisitions contributed +2%, organic decline was 7%, and FX reduced sales by 1%.

• EBIT was €60.2m, down 16%; net income fell 21% to €44.7m, reflecting lower EBIT and FX losses.

• Operating cash flow increased 48% to €87.9m, supported by lower trade receivables and inventory.

• Selective cost measures incurred €2.8m of restructuring costs; 319 FTEs were reduced, leaving 3,593 at year-end.

Outlook and guidance

• 2024 is expected to remain challenging due to the construction downturn and geopolitical supply-chain volatility; a full-year forecast was considered unreliable, with an outlook planned alongside H1 results.

• Medium-term targets remain sales CAGR of 5%, EBIT margin of 9–11%, and ROCE above 20%.

• Strategy continues to prioritize ventilation growth through market and product development, while harvesting radiator positions through operational excellence and design.