SFS Group (SFSN) H2 2024 earnings summary

Executive summary

• Achieved third-party sales of CHF 3.039 billion in 2024, down 1.7% year-over-year, with 0.1% organic growth and strong negative currency effects of -1.9%.

• EBIT margin reached 11.6% of net sales, slightly below last year due to mix effects, lower capacity utilization, and inflationary pressures.

• Earnings per share declined to CHF 6.21, impacted by currency and tax effects.

• Significant reduction in CapEx to CHF 148.9 million while continuing key project ramp-ups.

• SAP S/4HANA migration completed successfully, supporting future process optimization.

Financial highlights

• EBITDA for 2024 was just under CHF 480 million, representing a margin of 15.7%.

• Operating free cash flow reached CHF 226 million, with EBITDA conversion at 47.1% and net income conversion at 93.1%.

• Net working capital held at 28.1% of sales, supporting strong cash flow.

• Equity ratio improved to 59.7%, nearing the target of above 60%.

• Dividend proposal of CHF 2.5 per share, with half from privileged capital reserves.

Outlook and guidance

• EBIT margin for 2025 expected to remain around prior year’s level amid continued uncertainty.

• Strategic focus on disciplined execution, innovation, and maintaining robust profitability.

• Growth initiatives in automotive, electronics, aerospace, and M&A expected to add up to 4.5% sales growth potential.

• Cautious outlook due to low market visibility and ongoing geopolitical and economic volatility.

• Economic momentum improved less than expected in H2 2024, with global uncertainties dampening investment and demand.