Rieter (RIEN) H1 2024 earnings summary

Executive summary

• Order intake rose 24% year-over-year to CHF 403.4 million, driven by strong demand in China, India, and Turkey, while sales fell 44% to CHF 421.0 million due to a low prior-year order backlog and weak textile demand.

• EBIT margin reached 2.1% (CHF 8.9 million), supported by strict cost management and the "Next Level" performance program.

• Net result was CHF 1.7 million, down from CHF 13.3 million year-over-year, reflecting lower sales volume.

• Free cash flow was negative at CHF -1.1 million, mainly due to restructuring and performance program outflows.

• Major innovation milestones included the first complete air-jet spinning system installation in China and strong market interest in automation solutions like ROBOspin.

Financial highlights

• Sales: CHF 421.0 million (down 44% year-over-year); Order intake: CHF 403.4 million (up 24%).

• Gross profit margin improved by five percentage points year-over-year to 29.0%, despite a 33% decline in absolute gross profit to CHF 122.2 million.

• Net debt decreased to CHF -243.9 million, aided by reduced operating net working capital.

• Liquid funds stood at CHF 99.5 million as of June 30, 2024.

• Market capitalization increased to CHF 518 million as of June 30, 2024.

Outlook and guidance

• Full-year 2024 sales are expected between CHF 900 million and CHF 1 billion, with a positive EBIT margin of 2%-4%.

• Second-half sales are projected at CHF 480–580 million, with margin improvement anticipated due to higher volumes and better capacity absorption.

• Order intake is expected to increase in the second half, especially in China and India, supporting a solid start to 2025.