Schlatter increases net sales and earnings in 2023 financial year

Schlatter Industries AG / Key word(s): Annual Results Schlatter increases net sales and earnings in 2023 financial year 28-March-2024 / 06:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. SCHLATTER INDUSTRIES AG - SIX SWISS EXCHANGE: STRN - ISIN: CH0002277314 Ad hoc announcement pursuant to article 53 LR    S c h l i e r e n, 28 March 2023. In the 2023 financial year, the Schlatter Group generated net sales of CHF 128.6 million (2022: CHF 110.5 million) and order intake of CHF 113.1 million (2022: CHF 128.1 million). The order backlog as at 31.12.2023 stood at CHF 73.9 million (31.12.2022: CHF 89.4 million). The operating result (EBIT) for the period under review was positive at CHF 7.1 million (2022: CHF 5.5 million). Consolidated net profit stood at CHF 5.1 million (2022: CHF 3.5 million).   Demand for Schlatter products normalized in the 2023 financial year. In particular, demand for reinforcing mesh production systems and weaving machinery for the paper industry dropped following a period of market overheating. By contrast, after-sales volumes continued to grow, while the number of industrial mesh production systems and rail welding systems sold increased significantly. Suppliers’ delivery problems eased in the second half of the year, but the resulting backlogs weighed on productivity and gave rise to substantial additional costs. Prices of sourced materials largely stabilized at a higher level, while further appreciation of the Swiss franc put additional pressure on earnings.   Net sales were 16.4% higher year on year and the operating result (EBIT) was also higher at CHF 7.1 million (financial year 2022: CHF 5.5 million).  The Schlatter Group closed the 2023 financial year with a high order backlog, with the result that capacities in the 2024 financial year will largely be utilized.   Welding segment 2023 In the 2023 financial year, the welding segment achieved order intake of CHF 95.0 million (2022: CHF 99.9 million) and net sales of CHF 100.8 million (2022: CHF 96.0 million). The order backlog as at 31.12.2023 stood at CHF 56.7 million (31.12.2022: CHF 62.5 million).   The segment recorded lower yet satisfactory order intake on a year-on-year basis. The fall-off in orders for reinforcing mesh production systems was sufficiently offset by good order intake in rail welding machinery as well as industrial mesh production systems. Given the current order backlog, existing capacities in the 2024 financial year are already well utilized. The welding segment should contribute to a further increase in net earnings for the financial year.   Weaving segment The weaving segment recorded order intake of CHF 18.1 million (2022: CHF 28.2 million) and net sales of CHF 27.8 million (2022: CHF 14.5 million). The order backlog as at 31.12.2023 stood at CHF 17.2 million (31.12.2022: CHF 26.9 million).   The above-average level of demand in previous periods was driven by orders from China. The Chinese market is now in a saturation phase, and incoming orders have returned to normal. Despite significantly higher material costs and increases in official wage rates, the Münster site increased its sales and earnings in the 2023 financial year. The Münster site is already operating at full capacity for the 2024 financial year. To boost productivity, a comprehensive package of measures was devised.   Outlook for the Schlatter Group The Schlatter Group has successfully launched product innovations, stepped up its marketing effort and expanded its service business. The Group expects net sales to be slightly lower in the 2024 financial year. On the other hand, Schlatter aims to increase its operating result (EBIT).   At the annual general meeting on 7 May 2024, the Board of Directors will propose the payment of capital reserves of CHF 1.00 per share for the 2023 financial year, instead of a dividend (previous year: dividend of CHF 0.50).   The full 2023 Annual Report can be downloaded from the Schlatter Group website: http://www.schlattergroup.com/de/investor-relations/geschaefts-_und_semesterberichte   Further information Schlatter Industries AG Werner Schmidli Chief Executive Officer Mobile [phone] [e-mail]   Agenda 28.03.2024 Publication of the detailed annual result for 2023 by an ad hoc announcement and publication of the annual report on the company’s website 07.05.2024 Annual General Meeting 16.08.2024 Publication of half-year report 2024   Schlatter Group Key figures     2023 2022 Net sales CHF million 128.6 110.5 Change compared to previous year % 16.4 16.7 Operating result (EBIT) CHF million 7.1 5.5 in % of net sales % 5.5 5.0 Net result (incl. minority interests) CHF million 5.1 3.5 in % of net sales % 4.0 3.1 Net result (excl. minority interests) CHF million 5.9 3.4 in % of net sales % 4.6 3.1         Order intake CHF million 113.1 128.1 Order backlog CHF million 73.9 89.4         Headcount as at December 31 FTEs 368 357 Annual average FTEs 366 338         Interest-bearing liabilities CHF million 5.4 7.2 Net financial position (debt)1 CHF million 8.0 1.7 Gearing2 % 0.0 0.0 Free cash flow3 CHF million 6.8 -6.5         Current assets CHF million 65.8 61.7 Non-current assets CHF million 18.4 19.1 Liabilities CHF million 48.7 49.5 Equity (incl. minority interests) CHF million 35.4 31.3 Equity (excl. minority interests) CHF million 35.9 31.2 Equity ratio (incl. minorities) % 42.7 38.5         Return on equity (ROE)4 % 15.3 11.6         Key share figures       Share capital as at December 31 CHF 1000 17 675 17 675 Total registered shares Number 1 104 704 1 104 704 Of which entitled to dividend payments Number 1 104 704 1 104 704 Net result per registered share5 CHF 5.33 3.10 Equity per registered share5 CHF 32.57 28.20 Dividend per registered share6 CHF 1.00 0.50 Payout ratio6 % 18.75 16.11         Share price development       High CHF 26.00 30.60 Low CHF 21.00 20.20 Year-end CHF 25.80 25.00         Market capitalization       High CHF million 28.7 33.8 Low CHF million 23.2 22.3 Year-end CHF million 28.5 27.6   1     Net financial position (debt): cash and cash equivalents less interest-bearing liabilities 2     Gearing: net debt divided by equity 3     Cash flow from operations less purchases of tangible assets and intangible assets plus sale of tangible assets  and intangible assets 4     Net result divided by average equity 5     Determined on the basis of dividend-entitled shares 6     Instead of a dividend, the Board of Directors will propose a capital reduction at the Annual General Meeting  on 7 May 2024 with the release of funds for the distribution of capital reserves. Schlatter Group (www.schlattergroup.com) The Schlatter Group is one of the leading specialists in plant engineering for resistance welding systems as well as weaving and finishing equipment for the production of paper machine clothing, wire fabrics and wire mesh. Thanks to its many years of experience in the field of plant technology, its innovative strength and its reliable service, the Schlatter Group – which is listed on the Swiss Reporting Standard of SIX Swiss Exchange – guarantees its customers a range of powerful and high-quality production equipment. This media information contains certain forward-looking statements, e.g. statements using the words "believes," "assumes," "anticipates," or formulations of a similar nature. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which could lead to substantial differences between the actual future results, the financial situation, the development or performance of the Company and those either expressed or implied by such statements. Such factors include, among other things: competition from other companies, the effects and risks of new technologies, the Company's continuing capital requirements, financing costs, delays in the integration of acquisitions, changes in the operating expenses, the Company's ability to recruit and retain qualified employees, unfavorable changes in the applicable tax laws, and other factors identified in this communication. In view of these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company accepts no obligation to continue to report or update such forward-looking statements or adjust them to future events or developments.  ------------------------------ This information can be downloaded as a PDF from the following link: Ad hoc announcement pursuant to article 53 LR If you no longer wish to receive information from Schlatter Industries AG, please send a message to: [e-mail] End of Inside Information

Language:	English
Company:	Schlatter Industries AG
	Brandstrasse 24
	8952 Schlieren
	Switzerland
Phone:	[phone]
E-mail:	[e-mail]
Internet:	www.schlattergroup.com
ISIN:	CH0002277314
Listed:	SIX Swiss Exchange
EQS News ID:	1869317

End of Announcement	EQS News Service

1869317  28-March-2024 CET/CEST