Bucher Half-Year Report 2024
In the first half-year, Bucher Industries was confronted with a decline in demand as a result of the general economic slowdown. The lower capacity utilisation could be partly mitigated by the high order book. Various cost-saving measures were initiated to safeguard the profitability. With a positive net cash level and a high equity ratio, the financial position remains very solid thus securing the Group’s flexibility as well as laying the foundations for further growth.
Decline in sales in a volatile market environment In the first half of 2024 a market environment full of uncertainties curbed the demand for the products and services of Bucher Industries. The order intake sank by 22.1%, with orders in particular for agricultural machinery and from the glass container industry in sharp decline.
Cost-saving measures to bolster the operating profit margin. Declining volumes and the resulting lower capacity utilisation had a negative impact on the operating profit margin, which decreased significantly compared with the very high value of the prior-year period, and amounted to 10.3%. In addition, wage and salary costs increased, while the reduction of material costs had a positive impact.
Profit for the period reflects lower operating performance The financial result amounted to CHF 5.1 million, still driven by interest income and the result from short-term financial investments. The income tax expense was accrued on the basis of the expected effective tax rates for the current financial year and amounted to CHF 37.8 million. The effective tax rate of 20.7% was in line with the prior year.
Overall, compared with the high first half of 2023, the profit for the period dropped by CHF 54.2 million to CHF 144.9 million, or 8.4% of net sales
Return on net operating assets significantly above the cost of capital In the first half of 2024 the return on net operating assets (RONOA) after tax was 19.1%, slightly lower than the target of 20% over a business cycle, but still well above the cost of capital of 8%. The main factors were on the one hand the lower operating profit margin and on the other hand the 14.9% higher average net operating assets.
