Carlo Gavazzi Holding AG (GAV) H1 24/25 earnings summary

Executive summary

• Revenue from sale of goods fell 34.3% year-over-year to CHF 64.1 million, mainly due to a slowdown in automation markets and high customer inventory levels.

• Bookings dropped 46.6% to CHF 44.4 million, with a book-to-bill ratio of 0.69 as of September 30, 2024.

• Net profit for the half-year declined 87% to CHF 1.6 million, reflecting lower sales and persistent cost pressures.

• Gross profit margin improved to 56.0% from 53.6% despite the revenue decline.

• Equity ratio strengthened to 78.4% from 72.5% a year earlier, indicating a robust balance sheet.

Financial highlights

• EBITDA decreased 69.5% to CHF 6.0 million; EBIT fell 79.9% to CHF 3.3 million year-over-year.

• Net working capital remained stable at CHF 51.1 million.

• Net cash position dropped 15.2% to CHF 59.8 million compared to March 31, 2024.

• Earnings per share: CHF 2.30 (ordinary), CHF 0.46 (voting), both sharply down from prior year.

Outlook and guidance

• Ongoing low customer demand, high stock levels, and economic/geopolitical uncertainties expected to weigh on results in the second half of 2024/25.

• Additional cost reduction measures planned in response to the uncertain outlook.

• Americas and rest of Asia may offer more opportunities from mid-2025, while Europe and China face continued challenges.