Bühler Improved Profitability in 2023
Bühler announced it has increased its profitability this past year. The equity ratio also further improved. In local currencies, turnover grew strongly, and orders improved slightly. With a high order book of CHF2bn, Bühler is well positioned for 2024. “We are satisfied with the outcome of 2023 and have proved again that we are a reliable partner in this dynamic world,” says Bühler CEO Stefan Scheiber.
At Group level and in Swiss Francs, Bühler performed well with a slightly increased turnover of CHF3bn (+1.0%). Order intake was CHF3.2bn (-3.8%) and the order book remained high at CHF2bn. EBIT rose by 8.9% to CHF216m with a corresponding EBIT margin of 7.2% (prior year: 6.7%). Net profit increased by 16.3% to CHF179m (prior year: CHF 154 million), corresponding with a margin of 5.9% (prior year: 5.2%). The impact of foreign exchange rates was significant. In local currencies, orders improved by 2% to CHF3.3bn, turnover by 7% to CHF3.2bn, and EBIT by 17% to CHF233m.
In 2023, Bühler continued to strengthen its financial position, increasing the equity ratio to 51.1% (prior year: 49.8%).
Advanced Materials experienced another strong year
In 2023, the Advanced Materials business continued its success. Whereas turnover grew strongly by 15.9% to CHF778m, order intake fell by 11.2% to CHF774m, indicating that business volumes were normalizing. In local currencies, turnover increased by 22.9%, while order intake reduced by 5.3%. With these results, the Advanced Materials business confirmed that it is in an upswing mode after a particularly strong order intake in 2022, driven by transformation in its industries. This enabled it to reach a record high turnover in 2023.
The Die Casting business area experienced significant growth reflecting the burgeoning demand for structural components for car bodies, including battery cases for electric vehicles, as well as for advanced megacasting solutions such as the new Carat 840 and 920 series. The Leybold Optics business area gained significantly from glass coaters for architectural applications and for car glass, from capacitors for e-mobility, grid applications, and the ongoing strong market trends in photonics and semiconductors.
Grains & Food performance driven by food security
In a challenging business environment, Grains & Food performed solidly. Turnover fell by 3.1% to CHF2,204m, while order intake was down 0.7% to CHF2,357m. In local currencies, turnover increased by 2.2% and order intake grew by 4.8%. The global demand to improve food security was a key driver for the Milling Solutions and Grain Quality & Supply business areas. While the challenging economic situation in China worked as a damper in most areas, especially in the Value Nutrition business, Grain Quality & Supply secured several larger orders for ship unloaders as a result of governmental efforts to improve food security.
Milling Solutions, the largest business area of Bühler, benefited from a global catch-up demand for large milling projects for grain processing, including numerous greenfield installations. Projects were awarded to Bühler from all over the world – United States, Saudi Arabia, Venezuela, Europe, Africa, and Southeast Asia, among others. Turnover growth was remarkable in the Chocolate & Coffee business area, and the Consumer Foods business area continued to recover both in volumes and profitability.
Innovation as key success factor
In 2023, expenses for R&D remained at a high level at CHF140m (4.7% of turnover) and around 50 new customer solutions were launched. “We see profitable growth as a prerequisite for creating a positive impact for a better world. This conviction guides our investments in the future development of our company, into innovative products and services, as well as in the development, education, and training of people,” says Stefan Scheiber.
Outlook: stable starting position for 2024
The economic climate in 2024 is still likely to be characterized by continued volatility. Bühler believed it is well positioned to navigate through dynamic times and to benefit from new opportunities that arise. A carryover of CHF2bn orders serves as a stable starting position for the business in 2024.