Forbo Holding AG Reports Decline in H1 2024 Earnings Amid Challenging Market Conditions

Forbo Holding AG reported net sales of CHF 570.3 million for the first half of 2024, reflecting a decrease of 3.7% in local currencies compared to the prior-year period. The company faced a challenging market environment, coupled with negative currency effects that further impacted earnings.

Operating profit (EBIT) declined by 17.8% to CHF 61.8 million, maintaining a double-digit EBIT margin of 10.8%. Total group profit stood at CHF 48.4 million, representing a 15.7% decrease from the previous year. The continued negative currency impact was significant, affecting both net sales and earnings.

The company's equity ratio improved to 62.3%, up from 61.4% at the end of 2023. Forbo remained debt-free with net cash of CHF 40.0 million, down from CHF 69.0 million due to dividend payouts and seasonal working capital needs.

The Forbo Flooring Systems division saw a slight decline in net sales by 2.9% in local currencies. In contrast, the Forbo Movement Systems division's net sales dropped by 5.2% in local currencies. Forbo continues to invest in product development and operational excellence, while introducing innovative collections to bolster the second half of the year.