In an economically challenging market environment, marked by a strong Swiss franc, Bossard Group achieved sales of CHF 1.069 billion (€1.113 billion) in the financial year 2023 (2022: CHF 1.153 billion) – representing a decrease of 7.4% (in local currency: -2.6%).
Bossard explains that the positive business momentum that continued into the first quarter of 2023 normalised over the course of the year. Normalisation of incoming orders in the course of customer inventory reductions seamlessly transitioned to weaker customer demand. Economic indicators also deteriorated as the year progressed. However, thanks to stable demand in parts of the growth industries, and the gratifying performance of Smart Factory services, Bossard was still able to strengthen its market position in all three market regions.
Weakening market in Europe
In Europe, Bossard posted a drop in sales of 6.1% to CHF 586.4 million (in local currency: -3.5%). This result was a consequence of the economic slowdown and normalisation of demand, as well as the stronger Swiss franc. Despite tough economic conditions, the electromobility and railway sectors showed positive accents. In an environment marked by inflation and a shortage of skilled labour, Bossard’s Smart Factory services drew even more attention from customers.
Normalisation of demand dynamics in America
After a phase of double-digit growth rates, demand in America also began to normalise over the course of the year. While sales increased by 3.6% in local currency, sales in Swiss francs declined by 2.6% to CHF 301.5 million. The successful expansion of the customer base over recent years was particularly evident in the positive development of the focus industry of electromobility. Bossard Ontario Inc, in Canada, which was consolidated since 1st December 2022, contributed to the sales performance.
Restrained demand development in Asia
Sales in Asia declined by 17.8% to CHF 181.1 million (in local currency: -9%). Particularly in this market region the appreciation of the Swiss franc was significant. Apart from the gratifying development in India, the overall demand momentum in Asia was restrained. Especially in China, where only slight growth momentum was felt after Covid-19 restrictions were lifted. In India, Bossard benefited from nearshoring trends, a dynamic start-up landscape, as well as infrastructure projects in the focus industry of railway.
Outlook for 2024
“At this point in time, it is difficult to forecast how the challenging economic environment will evolve over the coming quarters,” reports Bossard. “Based on current market observations, we expect restrained development in demand in the first half of 2024, along with a continued rise in wage levels. However, even this market environment holds opportunities for growth. The stronger trend toward nearshoring and the digitalisation of processes to increase efficiency, and productivity, should further strengthen demand for our Smart Factory services – in a current environment marked by cost and wage inflation. We continue to stand by our medium term financial goals previously communicated and the consistent implementation of Strategy 200.”
Will joined Fastener + Fixing Magazine in 2007 and over the last 15 years has experienced every facet of the fastener sector - interviewing key figures within the industry and visiting leading companies and exhibitions around the globe.
Will manages the content strategy across all platforms and is the guardian for the high editorial standards that the Magazine is renowned.
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