After an already challenging second quarter, Bossard Group’s third quarter was further characterised by a weakening in demand, with low growth impulses from Europe and Asia. This is reflected in Bossard’s sales in the third quarter, which fell by 14.3% to CHF 249.8 million (prior year: CHF 291.6 million). In local currency, the decrease in sales was 9.4%.
Even in a more challenging economic environment, Bossard is continuing to pursue the implementation of its Strategy 200 – with extensive investments in future growth and further efficiency improvements made in the third quarter – including the successful continuation of the roll out of the new ERP system in Malaysia and Thailand. Moreover, the digitisation of processes was also the focus of customers. In an environment marked by a shortage of skilled labour and inflation, Bossard’s Smart Factory services drew even more attention.
In Europe, Bossard posted a Q3 drop in sales of 9.8% to CHF 136.5 million (2022: CHF 151.3 million). The combination of ongoing inventory reduction on the part of customers, and weakening demand, continued in the third quarter. In an environment characterised by economic uncertainty, positive accents were set in the railway and electromobility industries.
Following a phase of high double-digit growth rates, demand in America began to normalise. Sales fell by 16% to CHF 69 million (prior year: CHF 82.1 million). The strong Swiss franc was a significant factor in this development. Successful expansion of the customer base was particularly evident in the positive development of the electromobility focus industry.
In Asia, Bossard recorded a 23.9% decline in sales to CHF 44.3 million (prior year: CHF 58.2 million). The appreciation of the Swiss franc was also evident in this market region. Demand in the Asia region was subdued overall, with the exception of the positive development in India.
Future outlook
Based on the currently observable market trends, Bossard expects restrained sales development for the fourth quarter of 2023. For the full year 2023, sales of CHF 1.06 billion to CHF 1.08 billion, and an EBIT margin slightly above 10%, are expected. Bossard Group’s operating cash flow will continue to develop positively due, among other things, to the reduction in inventories. Notwithstanding the current volatility, Bossard is optimistic about the future and, following a phase of consistent investment in Strategy 200, is adhering to its medium-term financial targets.
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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