Bobst Group reports mixed H1 2024 results, anticipates Drupa-led recovery in H2

The company release said, in the first six months of 2024, orders received were 15% lower compared to 2023. However, in the first half of 2024, consolidated sales amounted to CHF 828.2-million, representing an increase of CHF 13.6-million, or 1.7%, compared with the same period in 2023.

Bobst's statement explained, “In terms of business units, the services and performance unit saw a 4.8% rise in sales, reaching CHF 331-million. Meanwhile, the printing and converting unit experienced a slight decrease in sales, dropping to CHF 497-million from CHF 499-million.” Sales increased in Asia and Oceania and the Americas but decreased in Europe and Africa.

The lower operating result (EBIT) was attributed to higher cost of personnel and to marketing costs linked to the Drupa 2024 exhibition. Additionally, unfavourable exchange rates negatively impacted the sales, reducing it by CHF 15.2-million.

The statement added, “Sales and results for the first half-year were as expected. Net debt was CHF 228-million compared to CHF 218-million at the beginning of the year. Order backlog at the end of June was 35% lower than in the previous year and 3% lower than at the end of 2023.”

The Bobst Group is optimistic about the second half of the year, as it is anticipating a boost from the drupa exhibition. However, the company also acknowledges potential risks due to geopolitical uncertainties and regional industry slowdowns.

For the remainder of 2024, the Bobst Group anticipates an improvement in machine orders. “However, they may still fall short of the previous year's level. At the same time, business unit services and performance is expected to maintain its current status, said the statement, adding, “Nevertheless, uncertainties stemming from geopolitical factors and fluctuating foreign currencies could hinder the pace of recovery.”

On a positive note, the interest sparked by the new solutions unveiled at Drupa will undoubtedly bolster the recovery efforts, said the Bobst statement.