Rieter Group Sales Drop 6% To CHF 1,418.6 Million In 2023

The Rieter Group released its unaudited figures for financial year 2023 in which its sales dropped around 6 percent to CHF 1,418.6 million as against CHF 1,510.9 million in 2022.

The Business Group Machines & Systems recorded sales of CHF 965.0 million, a decrease of 7 percent year on year, while sales at the Business Group Components fell to CHF 266.2 million, down 12 percent.

However, sales at the Business Group After Sales reported growth in sales at CHF 187.4 million, 9 percent higher than the earlier year when it stood at CHF 172.7 million.

“In line with expectations, the order intake of CHF 541.8 million was considerably below the previous year’s CHF 1,157.3 million,” the Swiss company said in a press release

Rieter had earlier reported that the market situation is characterised by investment restraint due to geopolitical uncertainties, higher financing costs and consumer discretion in important markets.

“While Rieter recorded higher demand in the second half of 2023, project commitments have not yet been able to materialise,” the company added.

At the end of 2023, the company had an order backlog of around CHF 650 million compared to CHF 1,540 million as on December 31, 2022.

Thanks to the measures taken under the ‘Next Level’ performance program, Rieter expects a positive EBIT margin of around 7 percent for 2023 vis-à-vis 2.1 percent in 2022.

“This puts EBIT margin at the upper end of the guidance of between 5-7 percent defined in October 2023 and it is mainly attributable to a better operating performance,” Reiter observed.