Bobst Group, a leading packaging and paper company, has reported positive results for the first half of 2023. While order entries were 22% lower compared to the record high in the same period of 2022, sales for the first six months of 2023 increased to CHF 815 million, a significant rise from CHF 773 million in the first half of 2022. The operating result (EBIT) also showed improvement, reaching CHF 47 million, compared to CHF 29 million in the previous year. The net result reached CHF 41 million, up from CHF 21 million in 2022. The sales and results for the first half-year were according to expectations.
Despite the positive performance, the net cash decreased from CHF 67 million at the beginning of the year to a net debt position of CHF 218 million at the end of June 2023. The order backlog at the end of June was 5% lower than the previous year.
Looking ahead, Bobst Group is optimistic about the second half of the year, thanks to a high backlog and service activities. However, they also acknowledge potential risks that could impact full-year results, particularly challenges in the parts and materials supply chain for the production and installation of machines in the second half of the year.
In the first half of 2023, consolidated sales amounted to CHF 814.6 million, representing an increase of CHF 42.1 million or 5.4%, compared to the same period in 2022. Volume and price variances had a positive impact of CHF 66.2 million or 8.6%, while exchange rates had an overall negative impact on sales of CHF 25.9 million or -3.4%. Additionally, the acquisition of Dücker Robotics s.r.l., Momo, Italy, completed on 28 April 2023, contributed CHF 1.8 million or +0.2% to the improvement.
The sales breakdown by Business Unit (BU) in the first half of 2023 was as follows:
BU Printing & Converting: CHF 498.9 million, a 6.9% increase compared to the same period in 2022.
BU Services & Performance: CHF 315.7 million, a 3.3% increase compared to the same period in 2022.
The increase in consolidated sales was attributed to a high machine backlog at the beginning of the year and the absence of travel restrictions and lockdowns caused by the pandemic, allowing Bobst Group to install more machines and perform more service interventions than in the same period in 2022.
The operating result (EBIT) for the first half of 2023 reached CHF 46.8 million, compared to CHF 28.6 million for the same period in 2022. The improvement is attributed to higher sales, improved margins, and better cost absorption due to fewer events negatively impacting the operational performance of the Group. However, additional price increases for materials, parts, and electricity limited the overall improvement.
The net result saw significant growth, reaching CHF 41.3 million, compared to CHF 21.6 million in 2022, mainly due to higher operating result (EBIT). Improved results of associates and a better financial result also had a positive impact.
Despite the positive performance, challenges such as foreign exchange rates, labor cost increases, supply chain turbulences, energy and raw material price increases, and availability remain for the Group. A cross-functional task force is managing these challenges, leveraging the company’s global scale and production planning capabilities.
The outlook for the second half of 2023 expects order entries to remain at a similar level as in the first six months. However, uncertainties in core markets, supply chain disruptions, geopolitical situations, and slowing end-user consumption could potentially lead to a further slowdown in the second half of 2023. Nonetheless, the Group aims to reach its long-term financial targets of at least 8% operating result (EBIT) and a minimum 20% return on capital employed (ROCE).