Bystronic AG: Enhanced profitability in the first half of 2023

Zurich, July 21, 2023 — In the first half of 2023, Bystronic achieved a solid performance. Thanks to the realization of the high order backlog and improved component availability, sales at constant exchange rates grew significantly by 9.7% to a total of CHF 468.3 million. Certain assemblies such as electronic components and control modules continue to be subject to supply constraints and their availability is only gradually improving. The sales development in the two largest regions was very satisfactory: The Americas region posted a strong double-digit growth and the EMEA region also made gains. Sales slowed down in the APAC and China regions.

The operating result (EBIT) doubled to CHF 25.3 million (H1 2022: CHF 10.5 million). The EBIT margin stood at 5.4% compared to 2.3% in the previous year. On the one hand, the higher sales volume contributed to the significant profitability enhancement, while on the other hand, the price increases implemented as well as the operating cost-saving measures made an impact.

At the end of the first half of 2023, Bystronic maintained a high order backlog of CHF 354.1 million compared to CHF 413.0 million at the end of 2022 and CHF 515.2 million at the end of the first half of 2022. The ongoing normalization of the order backlog allows the lead time for customers to be reduced.

As in the second half of 2022, customers adopted a cautious approach in the first six months of the 2023 financial year. As expected, in the context of the overall economic slowdown, demand weakened in all regions. In addition, adverse exchange rate effects had a negative impact. At CHF 420.9 million, order intake stood around 22% below the strong first half of 2022.

Alex Waser, CEO of Bystronic, says: “The improved availability of components has enabled us to meet the demand from many customers and to successfully bring projects to conclusion. The necessary price increases and cost-saving measures are taking effect, allowing us to significantly enhance our profitability. In spite of the cautious market sentiment, our strong market position and growing service business give rise to optimism for the second half of the year.”

Outlook

For the full year 2023, Bystronic confirms its outlook and continues to expect a weaker order intake in its machine business due to the economic slowdown, but a growing service business, and a higher operating result with a slight decline in sales.

Conference

CEO Alex Waser and CFO Beat Neukom will present the results today, July 21, 2023 at 11:00 a.m. CET during an English-language conference call and audio webcast. The webcast is available here or under the “Presentations” section on our website: https://ir.bystronic.com/en/publications/presentations/

Numbers to dial in to the conference call:
Switzerland / Europe: +41 58 310 50 00
United Kingdom: +44 207 107 06 13
United States: +1 631 570 56 13

Appendix

The complete Half-Year Report 2023 can be downloaded from our website:
https://ir.bystronic.com/en/publications/financial-reports/

Calendar

For queries:

Investor Relations
Beat Neukom
Chief Financial Officer   
Telephone +41 62 956 40 79   
investor@bystronic.com

Media Relations
Michael Präger
Chief Communications & ESG Officer
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 are active with 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 German translation differ from the English 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 precisely, such as, in particular, 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.