SFS Group reported sales of CHF 1.58 billion (€1.65 billion) for the first half of 2023, along with a renewed strong sales growth of 29.2% – driven by the inclusion of Hoffmann. At CHF 189.9 million, operating profit (EBIT) rose by 16.6% year-on-year.
Whilst SFS Group benefited from opportunities arising from its broad positioning across different end markets and regions, it still felt the impact of challenging regional and global developments. Business in the first half of 2023 clearly reflects this by a mixed performance and effects from de-stocking.
Consolidation effects led to growth of 32.7%, stemming from the inclusion of Hoffmann as of 1st May 2022. Currency effects reduced sales growth by 4.3%. On a like-for-like basis, a slight organic growth of 0.8% was achieved.
Profitability was impacted by a mixture of factors, including uneven capacity utilisation from new programme ‘ramp ups’ and partially increased cost basis. The Distribution & Logistics segment developed positively and contributed significantly to the increase in operating profit.
To guarantee a strong customer focus and better leverage cross-selling potentials, as well as both operational and application oriented synergies, the current Automotive and Industrial divisions are being complemented with the respective end market specific business areas of the Riveting division. This change will be implemented within the organisation as of 1st January 2024. The growth and profitability targets of the EC and FS segments will remain unchanged.
Expectations for 2023
Looking forward, SFS Group has updated its outlook on the 2023 financial year and expects sales of between CHF 3.1 billion and CHF 3.3 billion, including the first time consolidation of Hoffmann for the full year. This corresponds to an expected sales growth on a like-for-like basis along the mid-term guidance of 3% – 6%. For the SFS Group as a whole, an EBIT margin of around 12% is expected, at the lower end of the mid-term guidance of 12% – 15%. The outlook is based on the assumption that there will be no significant deterioration in the underlying economic conditions or geopolitical, energy or pandemic related restrictions.
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