HUBER+SUHNER Maintains EBIT Margin Stability Amid Communications Market Downturn

HUBER+SUHNER AG reported a year marked with challenges, witnessing a 6.3% organic decline in net sales for 2023, contrasted with a record high the previous year. Despite the downturn, the company's EBIT margin remained solid at 9.1%, aligning with its medium-term targets. The telecommunications sector experienced a noticeable decline, primarily in North America due to reduced 5G rollouts and high inventory levels across the supply chain.

The total order intake for the group decreased by 15.8% to CHF 821.4 million from a previous year's high of CHF 975.4 million, with net sales dropping by 10.8% to CHF 851.1 million. This decline was further compounded by the appreciating Swiss Franc. However, the transportation segment saw a 5.5% growth in net sales, attributed to rising demands in the railway subsegment and growth in electric vehicle and advanced driver assistance system initiatives.

HUBER+SUHNER's operational efficiency, highlighted by an EBIT of CHF 77.6 million, underscores its resilience in a tough market environment. The company managed to recover its gross margin slightly throughout 2023, maintaining nearly the same level as the previous year. Investments in research and development were pivotal, with CHF 57.4 million dedicated to future-oriented growth initiatives.

Looking forward, HUBER+SUHNER remains optimistic about returning to an organic growth trajectory in 2024, targeting an operating profit margin within the medium-term range of 9-12%. This ambition is supported by a strategic focus on innovation and balanced diversification, underlined by the company's significant investments in its growth initiatives.