Bystronic improves profitability with slight decline in sales; plans cost optimization program

Zurich, February 29, 2024 – In 2023 Bystronic continued to successfully implement its proven strategy: the Group launched new product innovations, achieved growth in its service business and realized the first Smart Factory together with a large European customer. In the USA, Bystronic expanded its offering of locally produced systems, and in China, the Competence Center for automation solutions was further expanded. In addition, Bystronic established ambitious medium-term goals as part of its sustainability strategy and committed to reduce emissions in alignment with the Science Based Targets.

According to Bystronic CEO Alex Waser, “Thanks to the tireless commitment of our employees and despite challenging market conditions, we were able to introduce new products to our customers, offer expanded service options and present new digital solutions. Even if the macroeconomic environment remains challenging in 2024, we are confident we will continue to grow in the medium term due to our attractive portfolio of products and service offerings.”

Order intake and sales
Due to economic uncertainties, our customers tended to be cautious. In the EMEA, APAC and China regions, order intake decreased. Thanks to our strong market position, the Americas region achieved an order intake at prior year level at constant exchange rates. In total, order intake amounted to CHF 794 million (-16% at constant exchange rates). Due to high order backlog, Bystronic achieved sales on par with the prior year at constant exchange rates. The strong Swiss franc reduced sales by CHF 63 million, so reported sales declined by 8% to CHF 930 million.

Operating result and net result
Bystronic increased its operating result (EBIT) by 13% to CHF 54 million. The EBIT margin thus improved to 5.8% (2022: 4.7%). These results are due to price increases, efficiency gains and saving measures related to operational costs. The impact of these measures compensated for currency losses of several million at the operating profit level. The net result amounted to CHF 42 million (2022: CHF 37 million).

Operating free cash flow and RONOA
Bystronic focused on significantly reducing net working capital and thereby improving operating free cash flow from CHF -41 million in the previous year to CHF 34 million in 2023. RONOA, at 14.2%, remained close to the prior year level (2022: 15.1%).

Dividends
The Board of Directors is proposing for the April 17, 2024, Annual General Meeting, a distribution of a dividend of CHF 12.00 per class A registered share and CHF 2.40 per class B registered share. In total, CHF 24.8 million will be distributed to shareholders. The proposal reflects the solid performance of the prior financial year and is in accordance with the dividend policy, which sets aside between one-third and one-half of the net result for distribution, taking into account the company's liquidity situation and future needs.

Outlook
For 2024, Bystronic anticipates a continued challenging market environment and an order intake similar to that of previous quarters. Due to the strength of the Swiss franc and the lower order backlog compared to last year, the company expects to have declining sales with lower profitability. The Group anticipates a weak beginning of the year and improvement over the course of the year.

Bystronic is planning a comprehensive cost optimization program that is expected to result in CHF 50 million in savings in the next two years. On the one hand, the program will reduce volume related costs by adjusting personnel capacity, eliminating about 110 positions. On the other hand, the program aims to sustainably reduce its structural cost base. As such, Bystronic is streamlining its organizational structure to be well positioned for the next economic upswing. Bystronic expects to eliminate another 100 positions as part of these measures. Bystronic estimates the one-time costs associated with this program to be about CHF 10 million in financial year 2024. The planned cost savings should already have a positive effect in 2024.

With an optimized cost structure based on its proven strategy, Bystronic is positioned solidly for the future. Thanks to existing structural growth drivers, increasing sales in the service business, the integrated software offering and a strong balance sheet, Bystronic is confident of profitable growth.


Conference
CEO Alex Waser and CFO Beat Neukom will present the results today, February 29, 2024, at 11:00 CET in the Hotel Marriott in Zurich and via teleconference in English.  The webcast can be accessed here or under “Presentations” on our website. 
https://ir.bystronic.com/en/publications/presentations/

Dial in for the teleconference:
Switzerland / Europe: +41 58 310 50 00
United Kingdom: +44 207 107 06 13
United States: +1 631 570 56 13


Appendix
The complete 2023 Annual Report is available for download on our website:
https://ir.bystronic.com/en/publications/financial-reports/


For queries:
Investor Relations
Patrizia Meier    
Mobile +41 79 637 46 33  
patrizia.meier@bystronic.com

Media Relations
Michael Präger
Mobile +41 79 870 01 43
michael.praeger@bystronic.com


About Bystronic
Bystronic (SIX: BYS) is a leading global technology company in the field of sheet metal processing. The focus is on the automation of the complete material and data flow of the cutting and bending process chain. The intelligent networking of laser cutting systems and press brakes based on innovative automation, software, and service solutions is key to achieving the comprehensive digitalization of the sheet metal processing industry.

Bystronic’s operational headquarters are located in Niederönz (Switzerland). Additional development and production sites are located in Sulgen (Switzerland), Gotha (Germany), Cazzago San Martino and San Giuliano Milanese (Italy), Tianjin, Shanghai, and Shenzhen (China), and Hoffman Estates (USA). We operate our own sales and service companies in more than 30 countries and are represented by agents in numerous other countries.

Disclaimer
This media release has been published in English and German. Should the English translation differ from the German original, the wording of the German version shall prevail. This media release contains forward-looking statements, which are subject to uncertainty and risks. Actual future results may differ materially from those expressed in or implied by these statements. Some of these uncertainties and risks relate to factors that are beyond Bystronic’s ability to control or predict, such as future market conditions, currency fluctuations, or the behavior of other market participants, suppliers, and transport companies, as well as possible effects of the war in Ukraine and the associated sanctions. Readers are cautioned not to put undue reliance on forward-looking statements, since these relate only to the date of this communication. Bystronic disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or any other factors.