BOBST, a supplier of printing and packaging equipment, has reported SFr828.2m ($933m) in sales in the first half (H1) of financial year 2024 (FY24), increasing 1.7% from SFr814.6m during H1 FY23.
This growth is attributed primarily to higher services sales, with equipment and spare parts sales remaining consistent with the previous year’s figures.
The geographical distribution of sales indicated growth in the Asia & Oceania and the Americas segment while Europe and Africa experienced a downturn, not reaching the sales levels of H1 2023.
Despite the increase in sales, BOBST’s operating result (EBIT) fell to SFr34.7m in H1 FY24 from SFr46.8m in the same period last year.
The decrease in EBIT is largely due to increased personnel costs and marketing expenses associated with the drupa exhibition, which occurs once every four years.
The company’s Printing & Converting Business Unit saw a slight decline in operating results, from a loss of SFr3.8m in the first half of 2023 to a loss of SFr5.8m in 2024.
The Services & Performance Business Unit’s EBIT also saw a reduction by SFr10.6m, totalling SFr41.3m.
This was mainly due to a less favourable product mix, the costs of drupa, and higher IT expenses related to the upcoming SAP Hana implementation.
BOBST’s net debt position increased slightly to SFr227.5m at the end of June 2024, compared to SFr218.2m at the end of 2023.
Looking ahead, BOBST has cautioned that full-year sales and EBIT for 2024 are expected to be lower than the levels achieved in 2022, which were SFr1.84bn in sales and SFr141.3m in EBIT.
Nevertheless, the company maintains its long-term financial targets, aiming for at least an 8% EBIT and a minimum 20% return on capital.
While machine orders for the full year are anticipated to improve in the latter half of 2024, they may still fall short of the previous year’s levels.
In March this year, BOBST announced a range of new solutions designed to empower customers in the ever-evolving packaging landscape.
