Bossard Group has reported that the first half of 2023 was marked by a heterogeneous development in demand in its three market regions. Gratifying growth in America contrasted with the economic slowdown in Europe and in Asia, especially in China. Overall, Bossard’s sales, as well as EBIT and net income, fell slightly compared to last year’s records.
Bossard’s ales in the first half of 2023 declined by 1.5% to CHF 577 million (prior year: CHF 586 million), while growth in local currency was 3.1%. Organic growth amounted to 1.2%. Net income fell by 16.7% to CHF 49.9 million (prior year: CHF 59.9 million).
The challenges for Bossard have shifted in the last six months. With the lifting of the strict Covid-19 restrictions in China, demand started to normalise in the consumer goods and electronics industries, as well as in medical technology – the industry sectors that benefited from the pandemic. At the same time, decreasing demand and shorter delivery times during the second quarter led to a normalisation in the procurement market.
In Europe, Bossard recorded a decrease in sales of 3.2% (in local currency:+0.4%) to CHF 321.2 million (prior year: CHF 331.7 million). This result is the consequence of the economic slowdown and normalisation of demand. In an environment marked by a shortage of skilled labour and inflation, Bossard’s Smart Factory services drew even more attention from customers.
In America, Bossard again posted solid and broad-based growth in the first half of the year, although it began to slow down towards the end of that period. Sales increased by 9.9% (in local currency: +13.8%) to CHF 161.6 million. Organic growth in local currency amounted to 6.4%. The Group’s expertise in the electromobility sector, built up over the last several years, has led to further expansion of our customer base.
Owing to the uncertain economic environment, geopolitical tensions, and increasing trade conflicts, Bossard believes the outlook for the rest of the year remains marked by uncertainty and risk. Based on observations of current developments, Bossard expects moderate economic demand in the second half of 2023. This expectation is also based on its customers’ continued inventory reductions and, in a best-case scenario, stable purchase prices. Notwithstanding the above, the consistent implementation of Strategy 200 in the first half of the year has further improved conditions for sustainable, profitable growth and Bossard views the future with optimism.
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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