Group Business Review
Declining demand and negative net result
Throughout 2024, Bystronic faced economic uncertainties, a persistently weak economy and internal challenges, particularly in the implementation of full solutions. Sales declined considerably and, despite cost reduction efforts, costs could not be covered, resulting in a loss. The cost reduction measures introduced at the beginning of the year were insufficient, so in September 2024, Bystronic launched a comprehensive action plan to ensure long-term profitability and strengthen Bystronicʼs position as a full solutions provider.
Order intake and sales development
Order intake was CHF 625 million in 2024, 21% lower than prior year (–19% at constant exchange rates). The market environment was challenging and the overall economic environment difficult. The decline in global production activity continued. The Purchasing Managers Indices (PMI) in major industrial markets have been under 50 since the fourth quarter of 2022, reflecting an ongoing contraction of economic activity. Our customers were correspondingly cautious.
The challenges in project execution and customer satisfaction impacted our market position. Customers were reserved about Bystronicʼs full solutions offerings, which negatively impacted order intake.
Bystronicʼs 2024 sales were CHF 648 million, a decline of 30% (–28% at constant exchange rates). However, a strong base effect must be taken into account: The previous yearʼs sales were positively impacted by a high order backlog at the beginning of 2023.
Operating result (EBIT)
Bystronic experienced an operating loss (EBIT) of CHF 84 million in 2024 (2023: CHF +54 million). This was due to overcapacity and a high percentage of fixed costs. Despite cost reduction measures, the company could not compensate for the drop in sales and hence could not achieve a positive operating result.
The cost reduction measures introduced at the beginning of the year were insufficient and required more far-reaching measures. To increase profitability in the long term, Bystronic launched a restructuring in September 2024 that would result in annual structural savings of more than CHF 60 million. EBIT includes restructuring expenses and impairment losses of CHF 37 million, which are attributable to the cost reduction measures and had an additional negative impact on earnings. The adjusted operating result (EBIT) was CHF –47 million.
Net result, cash flow and dividends
The net result was CHF –68 million (2023: CHF +42 million). Earnings per class A registered share was CHF –32.67.
Bystronic concentrated on the optimization of net working capital and achieved a slightly positive operating free cash flow of CHF 1.2 million despite the negative net result. Net working capital declined 36%, which is a disproportionately large reduction in relation to sales. Cash and cash equivalents and securities were CHF 323 million as of December 31, 2024, still at a very high level.
The Board of Directors is proposing for the April 22, 2025, Annual General Meeting, the distribution of a dividend of CHF 4.00 per class A registered share and of CHF 0.80 per class B registered share. In total, CHF 8 million will be distributed to shareholders. The proposal reflects the continued solid liquidity situation of the Group despite the loss 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 liquidity situation and the future needs of the Group.
New organization structure and restructuring
In September 2024, Bystronic committed to a comprehensive restructuring to position itself closer to the customer and reduce its cost base. The regional organizational structure was replaced with a divisional structure and the size of the Executive Board team was reduced to four members. In addition to the Service Division, competencies in machinery, automation and software were bundled into the Systems Division to better serve customers, strengthen the companyʼs position as a full solutions provider and respond with more agility to market needs.
Additional restructuring measures relate to the increased use of synergies. Included in this is the merging of group functions and the consolidation of global operating structures.
In total, the structural adjustments account for more than CHF 60 million in annual savings and should ensure profitability over the entire economic cycles.
Outlook
2025 will be a transition year for Bystronic. The company expects the market environment to remain challenging, and in the first half of the year, order intake to be at the same level as in recent quarters. As of the third quarter, Bystronic expects to gain back market share. This will lead to increased sales in 2026.
Due to the low order backlog at the beginning of the year and the strength of the Swiss franc, Bystronic expects a slightly lower level of sales for 2025, as well as another operating loss. In total, the Group expects a weak beginning of the year and improvement over the course of the year.
Thanks to a proven strategy, the new divisional organizational structure, an optimized cost structure and the intact structural growth drivers, Bystronic sees itself solidly positioned for the future. It expects to achieve an average EBIT margin of 5 to 7% over the course of the economic cycles.