Metall Zug AG Announces Annual Results and Completion of Transformation Process in 2023

On March 11, 2024, Metall Zug Group reported its annual results, revealing net sales of CHF 494.7 million, a decline from the previous year's CHF 645.9 million. The company faced a challenging market in 2023, leading to a notable downgrade in its operating result (EBIT) at CHF 13.8 million, compared to CHF 135.9 million the year before, and a decrease in net result to CHF 26.7 million from the preceding year's CHF 137.3 million. This downturn is attributed to a decrease in order intake, high material and energy costs, and unfavorable currency developments, further compounded by the deconsolidation of the Schleuniger Group.

Despite these challenging conditions, Metall Zug emphasized a transformation milestone with its joint venture with Belimed and Steelco. This marks the third and final step in transforming Metall Zug into a holding company focused on industrial investments with potential for value creation. Operating cash flow saw improvement thanks to significant reductions in inventories and accounts receivable, resulting in an uplift to CHF 9.5 million from the previous year's CHF -6.0 million. The equity ratio saw a slight increase to 75.6% from 73.9%.

Furthermore, the company announced it would propose a lower cash dividend than the previous year at the upcoming General Meeting of Shareholders on April 26, 2024. This proposal aligns with Metall Zug’s sustained efforts towards its sustainability strategy. Looking ahead, the company signals caution with a noticeable decline in customer investment willingness in 2023 and only isolated signs of improvement in 2024.