Forbo (FORN) H1 2024 earnings summary

Executive summary

• Net sales for H1 2024 were CHF 570.3 million, down 7.3% in CHF and 3.7% in local currencies, reflecting challenging markets and negative currency effects.

• EBIT declined 17.8% to CHF 61.8 million, with a margin of 10.8%.

• Group profit dropped 15.5% to CHF 48.4 million; EPS CHF 34.36 (H1 2023: CHF 40.54).

• Equity ratio improved to 62.3%, with a debt-free balance sheet and net cash of CHF 40.0 million.

• Strategic investments and operational efficiency initiatives continued.

Financial highlights

• EBITDA fell 15.6% to CHF 86.8 million; EBITDA margin at 15.2%.

• Free cash flow was CHF 7.2 million, down from CHF 22.9 million in H1 2023.

• Cash flow from operating activities was CHF 21.6 million, down from CHF 33.0 million year-over-year.

• Dividend payout and inventory build-up contributed to lower net cash.

• Equity increased by CHF 45.3 million since year-end 2023.

Outlook and guidance

• Full-year 2024 outlook confirmed, supported by a healthy, debt-free financial base and positive net cash.

• Measures in production, logistics, and sales, plus a slightly positive H1 2024 trend vs. H2 2023, underpin guidance.

• Focus remains on operational excellence, innovation, and customer proximity.