First half of 2024 – Sales growth despite challenging market conditions

Schweizer Electronic AG: First half of 2024 – Sales growth despite challenging market conditions

• Sales increase by 8.1 per cent
• Structural shifts impact profitability
• Order backlog remains solid
• Earnings forecast reduced

Schramberg, 09 August 2024 – SCHWEIZER Group publishes its results for the first half of 2024 and shows sales growth of 8.1 percent to EUR 74.3 million (previous year: EUR 68.7 million), despite a difficult market environment.

Order backlog
At the end of the second quarter of 2024, the SCHWEIZER-Group had an order backlog of EUR 213.0 million (31 December 2023: EUR 251.3 million). Of this amount, EUR 82.6 million is due for delivery in the following two quarters of 2024. Incoming orders were affected by project-specific postponements and cancellations. Incoming orders for sales of products from our strategic partners developed positively, whereas the order intake for own production declined. The order backlog for 2025 and subsequent years amounts to EUR 130.4 million.

Sales development
In the first half of 2024, sales increased by 8.1 per cent to EUR 74.3 million (previous year: EUR 68.7 million). Sales from own production amounted to EUR 44.7 million, which corresponds to a decrease of 1.3 percent. In contrast, sales of products via the Asian partner network rose by 26.2 percent to EUR 29.6 million. This was due to the start of series production of embedding technology for automotive customers and the success of the fab-light partnerships.

Market segments and regions
Sales to automotive customers totalled EUR 59.4 million, an increase of 28.9 percent compared to the previous year. The share of sales from industrial and other customers totalled EUR 14.9 million, well below the previous year's level of EUR 22.7 million. Germany, the main market, recorded a drop in sales of 7.7 percent to EUR 30.9 million. By contrast, the other European markets increased by 50.4 percent to EUR 23.5 million. While adjusted sales in Asia rose by 14 percent, exports to America fell by 8.5 percent. 

EBITDA (earnings before interest, taxes, depreciation and amortisation) for the first half of 2024 amounted to EUR 0.1 million (previous year: EUR 5.7 million), which corresponds to an EBITDA ratio of 0.1 percent. Profitability was negatively impacted by a falling capacity utilization at the Schramberg site, cost increases and shifts in the product mix.

Financial position and equity
The equity ratio fell to 18.7 percent (31.12.2023: 24.3 percent). Despite increased costs and loss transfers from the equity-accounted investment (in China), equity was stabilized thanks to strict balance sheet management. Non-current and current financial liabilities decreased to EUR 23.0 million.

Forecast / Outlook
The global economy will only grow moderately in 2024, with demand for electric vehicles in particular weaker than expected. Despite these challenges, SCHWEIZER's growth trend remains intact, supported by the series ramp-up of embedding technology and market share gains with key customers. Sales of between EUR 140 and 150 million are expected for the full year 2024, although the Executive Board currently expects to close the year at the lower end of the forecast range.

As capacity utilization at the Schramberg production plant is not expected to improve in the second half of the year and the measures introduced are not sufficient to achieve the original EBITDA expectation, we expect EBITDA of EUR 2 to 5 million (previously EUR 10 to 11 million) for the full year 2024.

The equity ratio is expected to be in the range of 20 to 25 percent at the end of the year.

In a challenging market environment, SCHWEIZER-Group believes it is well positioned for long-term success thanks to strategic initiatives such as high-voltage embedding and the fab-light strategy. Strict cost and cash management will be a high priority in the coming months.

The complete half-year financial report is available at https://schweizer.ag/investoren-und-medien/finanzberichte/downloads-berichte

Key Figures SCHWEIZER-Group

Explanations to Financial Figures are available at: https://schweizer.ag/en/investors-media/company-key-figures/explanations-financial-figures. 

About SCHWEIZER  
Schweizer Electronic AG offers the latest, cutting-edge technology and consultancy expertise in the PCB industry. Thanks to its state-of-the-art production facilities in Schramberg, Germany and Jintan, China as well as close partnerships with other technology leaders, SCHWEIZER provides individual PCB & Embedding solutions. SCHWEIZER's innovative PCB technologies are used in the most demanding applications, for example, in the Automotive, Aviation, Industry & Medical and Communications & Computing sectors, and are characterised by their extremely high quality and energy-saving and environmentally-friendly features.

The company was founded by Christoph Schweizer in 1849 and is listed at the Stuttgart and Frankfurt Stock Exchanges (ticker symbol „SCE“, „ISIN DE 000515623“).

For further information please contact:

Elisabeth Trik
Schweizer Electronic AG
Einsteinstraße 10
78713 Schramberg
Phone: +49 7422 / 512-302
E-mail: elisabeth.trik@schweizer.ag
Please visit our website: www.schweizer.ag
Pictures: Schweizer Electronic AG | Flickr