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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.\u00a0\u00a0<\/p>\n
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This growth is attributed primarily to higher services sales, with equipment and spare parts sales remaining consistent with the previous year\u2019s figures.\u00a0<\/p>\n
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.\u00a0\u00a0<\/p>\n
Despite the increase in sales, BOBST\u2019s operating result (EBIT) fell to SFr34.7m in H1 FY24 from SFr46.8m in the same period last year.\u00a0<\/p>\n
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.\u00a0\u00a0<\/p>\n
The company\u2019s 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.\u00a0\u00a0<\/p>\n
The Services & Performance Business Unit\u2019s EBIT also saw a reduction by SFr10.6m, totalling SFr41.3m.\u00a0\u00a0<\/p>\n
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.\u00a0\u00a0<\/p>\n
BOBST\u2019s net debt position increased slightly to SFr227.5m at the end of June 2024, compared to SFr218.2m at the end of 2023.\u00a0<\/p>\n
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.\u00a0\u00a0<\/p>\n
Nevertheless, the company maintains its long-term financial targets, aiming for at least an 8% EBIT and a minimum 20% return on capital.\u00a0\u00a0<\/p>\n
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\u2019s levels.\u00a0<\/p>\n
In March this year, BOBST announced a range of new solutions<\/a> designed to empower customers in the ever-evolving packaging landscape.\u00a0<\/p>\n <\/p>\n