Zurich, March 2, 2023 – In the 2022 financial year, Bystronic achieved a solid performance in a challenging market environment. Order intake stood at CHF 1,009.5 million (-10.2% at constant exchange rates) with the prior-year period affected by pandemic catch-up effects. Sales grew by 8.1% (13.0% at constant exchange rates) to CHF 1,015.9 million. Bystronic also continued to expand its service business, increasing sales in this area by 10.7% (16.5% at constant exchange rates) to CHF 227.2 million (22.4% of total sales).

The operating result (EBIT) was CHF 48.1 million (EBIT margin: 4.7%). Profitability was impacted by three effects: Firstly, revenue recognition was delayed due to a lack of components as a result of supply bottlenecks. Secondly, Bystronic continued the expansion of its strategic growth areas with service and production capacities. Thirdly, procurement bottlenecks and inflation resulted in higher costs. The net result stood at CHF 36.6 million (2021: CHF 56.8 million).

Advance payments from customers continued to increase slightly, but were not able to offset the increase of inventories. On the one hand, Bystronic systematically built up its stocks of key components. On the other, due to a lack of individual components, which delayed the delivery and installation of machines and system solutions, these inventories increased significantly. Consequently, the operating free cash flow decreased to CHF -40.6 million (2021: CHF 64.8 million). The RONOA stood at 15.1% compared to 25.5% in the previous year.

Alex Waser, CEO of Bystronic, says: “In the face of major challenges in the supply chains, our employees performed outstandingly last year. The exceptional commitment of our development, procurement, and supply chain management teams in particular enabled us to establish alternative procurement channels and to restructure components to enhance availability. Thanks to our high order backlog and diversified customer portfolio in defensive markets, we are in a strong position for 2023 and expect an improved profitability.”

Dividend

The Board of Directors proposes to the Annual General Meeting on April 25, 2023, that a dividend of CHF 12.00 per class A registered share and CHF 2.40 per class B registered share be distributed. In total, CHF 24.8 million will thus be distributed to shareholders. Bystronic looks to the future with confidence. In view of the solid liquidity, the proposal reflects an ordinary distribution of slightly more than two-thirds of the net result. Following the distribution of the dividend, liquidity will remain at over CHF 310 million with an equity ratio of 63%. This means that the Group is in a good position to continue its organic and acquisitive growth and also has sufficient liquidity to face a challenging market environment. In the future, in line with its dividend policy, Bystronic plans to continue to distribute between one-third and one-half of the net result as dividends each year, taking into account the liquidity situation and the company’s future requirements.

Outlook and medium-term targets

Bystronic is in a strong position to achieve further growth in an attractive market. On the one hand, the Group can benefit from structural growth drivers: Sheet metal is a highly versatile, recyclable, easy to process, and lightweight material that will remain in demand in the future. On the other hand, Bystronic supplies customers from various industries that have different exposures to economic cycles. In recent years, Bystronic has successfully increased the proportion of stable, recurring sales from its service business. In addition, our smart factory solutions boost the productivity of our customers. All these factors mean that the business model is resilient in the face of an economically challenging market environment. Bystronic also has a strong balance sheet and high liquidity, which will allow the Group to continue to consistently implement its strategy.

In the medium term, subject to the recovery of the economy, Bystronic continues to aim for annual organic sales growth in excess of 5%, an EBIT margin in excess of 12%, and a RONOA of over 25%.

For 2023, Bystronic expects the economic slowdown to lead to a decline in order intake in the machine business, but still has a high order backlog in excess of CHF 400 million. The Group will drive forward the service business and consistently implement cost-saving measures in order to offset rising personnel and energy costs. For the 2023 financial year, Bystronic expects a higher operating result coupled with a slight decline in sales.

Conference

CEO Alex Waser and CFO Beat Neukom will present the results today, March 2, 2023, during an English-language conference call at 11:00 a.m. CET at Hotel Marriott in Zurich. The webcast is available here or under the “Presentations” section on our website: https://ir.bystronic.com/en/publications/presentations/

Numbers to dial in to the conference call:
Switzerland / Europe: +41 58 310 50 00
United Kingdom: +44 207 107 06 13
United States: +1 631 570 56 13

Appendix

The complete Annual Report 2022 can be downloaded from our website:
https://ir.bystronic.com/en/publications/financial-reports/

For queries:
Investor Relations
Beat Neukom
Chief Financial Officer   
Telephone +41 62 956 40 79   
beat.neukom@bystronic.com 

Media Relations
Michael Präger
Chief Communications & ESG Officer
Mobile +41 79 870 01 43
michael.praeger@bystronic.com

About Bystronic
Bystronic (SIX: BYS) is a leading global technology company in the field of sheet metal processing. The focus is on the automation of the complete material and data flow of the cutting and bending process chain. The intelligent networking of laser cutting systems and press brakes based on innovative automation, software, and service solutions is key to achieving the comprehensive digitalization of the sheet metal processing industry.

Bystronic’s operational headquarters are located in Niederönz  (Switzerland). Additional development and production sites are located in Sulgen (Switzerland), Gotha (Germany), Cazzago San Martino and San Giuliano Milanese (Italy), Tianjin, Shanghai, and Shenzhen (China), and Hoffman Estates (USA). We are active with our own sales and service companies in more than 30 countries and are represented by agents in numerous other countries.

Disclaimer

This media release has been published in English and German. Should the German translation differ from the English original, the wording of the German version shall prevail. This media release contains forward-looking statements, which are subject to uncertainty and risks. Actual future results may differ materially from those expressed in or implied by these statements. Some of these uncertainties and risks relate to factors that are beyond Bystronic’s ability to control or predict precisely, such as, in particular, future market conditions, currency fluctuations, or the behavior of other market participants, suppliers, and transport companies, as well as possible effects of the war in Ukraine and the associated sanctions. Readers are cautioned not to put undue reliance on forward-looking statements, since these relate only to the date of this communication. Bystronic disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or any other factors.