Group Business Review
Group Business Review
Enhanced profitability and lower order intake
In the first half of 2023, Bystronic achieved a solid performance. Thanks to the progressive reduction of the high order backlog, sales at constant exchange rates grew significantly by 9.7% to a total of CHF 468.3 million. The Group doubled its operating profit (EBIT) to CHF 25.3 million, which corresponds to an EBIT margin of 5.4% (previous year 2.3%). As expected, the customers’ cautious approach in view of the economic development led to a decline in order intake of 16.3% at constant exchange rates to CHF 420.9 million.
Order intake, sales, order backlog
As in the second half of 2022, customers exhibited a cautious approach in the first six months of the 2023 financial year. In the context of the overall economic slowdown, demand weakened in all regions. In addition, adverse exchange rate effects had a negative impact. Compared to the strong first half of 2022, order intake fell by 21.5% to CHF 420.9 million (-16.3% at constant exchange rates). The past few years have seen a substantial increase in the demand for complex automation solutions. In recent months, due to the subdued market sentiment, customers have increasingly combined high-end laser cutting systems with simpler automation solutions. This has enabled customers to more effectively manage investment volumes and benefit from shorter investment times. This trend primarily concerns the EMEA and Americas regions. Although the China region developed favorably following the easing of COVID-related measures at the beginning of 2023, customers nevertheless continued to take a somewhat cautious approach.
Thanks to the high order backlog and improved component availability, Bystronic achieved a solid sales growth of 9.7% at constant exchange rates. In Swiss francs, sales grew by 3.3% to CHF 468.3 million. However, certain assemblies such as electronic components and control modules continue to be impacted by supply constraints, and their availability is only gradually improving.
At the end of the first half of 2023, Bystronic had a high order backlog of approximately 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.