Rieter: Strong Growth in Order Intake in the First Half of 2024

-Order intake of CHF 403.4 million in the first half of 2024, up 24%
on the previous year period
-Sales of CHF 421.0 million 44% below first half of 2023
-Order backlog of around CHF 640 million at June 30, 2024
-EBIT of CHF 8.9 million and net result of CHF 1.7 million
-Significant cost reductions as a result of the “Next Level” performance program
-Outlook for the full year 2024 specified

 

In the first half of 2024, the Rieter Group posted an order intake of CHF 403.4 million (first half of 2023: CHF 325.0 million), which represents a significant increase of 24% compared with the same period of the previous year. Sales were CHF 421.0 million (first half of 2023: CHF 758.2 million). As expected, this was 44% lower than the previous year.

In a challenging business environment, Rieter achieved an EBIT margin of 2.1% thanks to strict cost management. The systematic implementation of the “Next Level” performance program led to a strengthening of profitability. Rieter recorded a profit at the EBIT level of CHF 8.9 million in the first half of 2024 (first half of 2023: CHF 25.2 million). The reduction of the cost base particularly in research and development as well as selling and administrative expenses contributed to this positive result.

Order intake

In line with expectations, the order intake of CHF 403.4 million in the first half of 2024 was significantly higher than in the same period of the previous year (first half of 2023: CHF 325.0 million). The increase in demand for new machines in the Business Group Machines & Systems contributed to this positive development. Orders came mainly from China, India, and Türkiye. At the same time, demand for consumables, wear & tear and spare parts declined slightly due to continued weak demand for textiles.

Sales by business group

Sales in the Business Group Machines & Systems decreased by 62% to CHF 198.7 million and in the Business Group Components by 12% to CHF 126.5 million. The decline in sales in both business groups is a consequence of the low order intake in 2023. In contrast, sales in the Business Group After Sales increased by 4% year-on-year to CHF 95.8 million. Growth was achieved through an increase in installation services and sales of engineered solutions. Demand for consumables, wear & tear and spare parts will depend on spinning mill capacity utilization in the months ahead. Rieter expects the global increase in spinning mill capacity to have a positive impact on volumes in the second half of 2024.

Order backlog

On June 30, 2024, the company had an order backlog of around CHF 640 million (first half of 2023: around CHF 1 100 million). This corresponds to a similar level at the end of 2023.

EBIT, net result and free cash flow

In the first half of 2024, Rieter posted a profit of CHF 8.9 million at the EBIT level, with an EBIT margin of 2.1% (first half of 2023: CHF 25.2 million) and a net result of CHF 1.7 million (first half of 2023: CHF 13.3 million). The decrease is due to the lower sales volume in the 2024 financial year.

In the first half of 2024, free cash flow was CHF -1.1 million (first half of 2023: CHF 10.0 million). The negative free cash flow was mainly due to cash outflows related to the settlement of provisions for the “Next Level” performance program.

Significant cost reductions as a result of the “Next Level” performance program

Rieter is working intensively on the implementation of the measures set out in the “Next Level” performance program. The optimization of overhead structures and the adjustment of production capacities were successfully implemented according to plan. Thanks to strict cost management, EBIT was positive despite the fact that sales were lower than forecast in the “low” scenario.

The transfer of resources and responsibilities to India and China is on track, enabling the key markets to respond more effectively to customer needs and cycles in the machinery business.

Rieter continues to pursue growth in the after sales and components business in order to achieve a more balanced mix between the business groups in the medium term.

Outlook for the full year 2024 specified

The markets remained under pressure from the economic slowdown, high inflation rates and noticeably dampened consumer sentiment. The first signs of a recovery in financial year 2024 have emerged in the key markets of China and India. Rieter expects demand to pick up further in the coming months.

For the full year 2024, Rieter anticipates sales in the range of CHF 900 million to CHF 1 billion and a positive EBIT margin of 2% to 4%.

Order Intake by Business Group

Order Intake
CHF million
January – June 2023 January – June 2024 Difference Difference
in local
currency
Rieter 325.0 403.4 24% 29%
Machines & Systems 111.4 211.5 90% 98%
Components 131.0 117.6 -10% -8%
After Sales 82.6 74.3 -10% -6%

Sales by Business Groups

Sales
CHF million
January – June 2023 January – June 2024 Difference Difference
in local
currency
Rieter 758.2 421.0 -44% -43%
Machines & Systems 521.9 198.7 -62% -61%
Components 143.9 126.5 -12% -11%
After Sales 92.4 95.8 4% 7%

Sales by Region

Sales by Region
CHF million
January – June 2023 January – June 2024 Difference Difference
in local
currency
Rieter 758.2 421.0 -44% -43%
Asian countries1 227.0 94.2 -59% -58%
China 83.7 74.4 -11% -7%
India 131.5 58.7 -55% -54%
Türkiye 78.5 76.7 -2% 0%
North and South America 105.5 54.3 -49% -48%
Europe 44.7 25.4 -43% -42%
Africa 87.3 37.3 -57% -57%

1 Excluding China, India, and Türkiye

Key Figures

CHF Million January ‒
June 2023
January ‒
June 2024
Difference
Rieter
Order intake 325.0 403.4 24%
Sales 758.2 421.0 -44%
Operating result before interest, taxes, depreciation, and amortization (EBITDA) 52.2 35.7 -32%
Operating result before interest, taxes, and restructuring (EBIT before restructuring) 28.2 9.1 -68%
– in % of sales 3.7% 2.2%
Operating result before interest and taxes (EBIT) 25.2 8.9 -65%
– in % of sales 3.3% 2.1%
Net result 13.3 1.7 -87%
Basic earnings per share (CHF) 2.97 0.39 -87%
Free cash flow 10.0 -1.1 -111%
Net debt at the end of the reporting period -298.9 -243.9 -18%
Equity in % of total assets at the end of the reporting period 23.0% 31.9%
Number of employees (excluding temporaries) at the end of the reporting period 5 555 4 831 -13%
Business Group Machines & Systems
Order intake 111.4 211.5 90%
Sales 521.9 198.7 -62%
Operating result before interest, taxes, and restructuring (EBIT before restructuring) 2.2 -9.8 -545%
– in % of sales 0.4% -4.9%
Operating result before interest and taxes (EBIT) 1.6 -9.9 -719%
– in % of sales 0.3% -5.0%
Business Group Components
Order intake 131.0 117.6 -10%
Sales 143.9 126.5 -12%
Total segment sales 211.3 151.4 -28%
Operating result before interest, taxes, and restructuring (EBIT before restructuring) 16.0 5.1 -68%
– in % of segment sales 7.6% 3.4%
Operating result before interest and taxes (EBIT) 16.0 5.1 -68%
– in % of segment sales 7.6% 3.4%
Business Group After Sales
Order intake 82.6 74.3 -10%
Sales 92.4 95.8 4%
Operating result before interest, taxes, and restructuring (EBIT before restructuring) 16.0 20.9 31%
– in % of sales 17.3% 21.8%
Operating result before interest and taxes (EBIT) 16.0 20.9 31%
– in % of sales 17.3% 21.8%

 

Alternative Performance Measures (APM)
The definitions of the APM used are contained in the 2023 Annual Report and Semi-Annual Report 2024.

Telephone Conference for Media and Investors

The telephone conference for media and investors will take place today, July 18, 2024, at 9.00 am (CEST).

Webcast
https://event.choruscall.com/mediaframe/webcast.html?webcastid=Hx29Aj9L

Dial-in Details
Europe               +41 58 310 50 00
UK                      +44 207 107 06 13
USA                   +1   631 570 56 13
China                  +86 400 120 23 19
India                   +91 446 688 60 46

Presentation Material

The Semi-Annual Report 2024, the media- and investor presentation as well as the media release can be found at: www.rieter.com/media/media-kit

Forthcoming Dates

  • Investor Update 2024                                                              October 23, 2024
  • Capital Market Day 2024                                                         October 28, 2024
  • Publication of sales 2024                                                         January 29, 2025
  • Deadline for proposals regarding the agenda of the
    Annual General Meeting                                                         February 28, 2025
  • Results press conference 2025                                                   March 13, 2025
  • Annual General Meeting 2025                                                       April 24, 2025
  • Semi-Annual Report 2025                                                              July 18, 2025
  • Investor Update 2025                                                              October 22, 2025

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