Media information 2023

 

• Revenue from sale of goods in local currency decreases by 1.0%, reaching CHF 97.5 million (-6.9% in Swiss Francs vs. 1st half 2022/23)
• Continued sales growth in Europe, decrease in the Americas and Asia-Pacific
• Gross profit margin increases from 51.3% to 53.6%
• EBIT declines from CHF 19.5 million to CHF 16.4 million
• Net profit for the half-year reduces by CHF 1.5 million to CHF 12.3 million (CHF 13.8 million in 2022/23)
• Solid equity ratio of 72.5%

Steinhausen, November 23, 2023 – During the first half of the 2023/24 financial year, Carlo Gavazzi experienced a general slowdown in the industrial automation markets, particularly in the USA and China. The Group’s revenue from sale of goods in local currency decreased slightly by 1.0% and bookings in local currency were lower by 33.6% compared to the record-high first half of 2022/23. Revenue from sale of goods in local currency increased in Europe by 1.5% whereas they decreased by 7.5% in the Americas and 4.3% in Asia-Pacific.

In Swiss Francs, revenue from sale of goods decreased by 6.9% to CHF 97.5 million (CHF 104.7 million in the first semester of the 2022/23 business year). The stronger CHF versus other currencies resulted in a 5.9% value reduction compared with the same exchange rates of the equivalent period last year.

Bookings in Swiss Francs were impacted by the general market slowdown and unfavorable currency developments. They decreased by 37.5% to CHF 83.1 million (CHF 133.1 million in 2022/23), resulting in a book-to-bill ratio of 0.85 on September 30, 2023.

Gross profit decreased by CHF 1.6 million to CHF 52.2 million (CHF 53.8 million in 2022/23), however, still resulting in an improved gross profit margin of 53.6% (51.3% in 2022/23).

Due to the strengthening of the organization (e.g. finalized global ERP roll out) and inflation impacts which could not get fully offset, operating expenses in the current period increased by CHF 1.6 million to CHF 35.9 million compared to CHF 34.3 million in the first half of last year.

As a result of the above mentioned gross profit value reduction and increased expenses operating profit (EBIT) decreased from CHF 19.5 million to 16.4 million.

Profit for the half-year declined by CHF 1.5 million to CHF 12.3 million (CHF 13.8 million in 2022/23).

At September 30, 2023, the total equity attributable to owners of the Group amounted to CHF 133.0 million resulting in an equity ratio of 72.5%.

Continued growth in Europe

Revenue from sale of goods in local currency continued to grow in Europe while the Americas and Asia-Pacific were influenced by various unfavorable developments.

In Europe, revenue from sale of goods was 1.5% up in local currency compared to the same period of last year. Business development was successful throughout Southern European countries as well as in some Nordic countries thanks to activities and initiatives especially in the main strategic industries in building and industrial automation markets. Other European countries were impacted by decreased demand in the energy field.

Revenue from sale of goods in the Americas was down by 7.5% in local currency compared to the previous year due to weakened demand across the distribution network, mainly in the USA.

In Asia-Pacific revenue from sale of goods decreased by 4.3% in local currency, impacted mainly by a decline in the main Chinese industrial automation industries (semiconductors and plastic & rubber).

The geographical share of revenue outside Europe was 29.7%, with revenue from sale of goods in the Americas and Asia-Pacific accounting for 17.3% and 12.4%, respectively.

Strong performance of Controls – Sensors and Switches with lower sales

Revenue from sale of goods in strategic industries in local currency decreased 1.2% versus the same period of last year. The drop was mainly led by multiple industrial automation industries which was not compensated fully by demand in the electrification market.

Overall, revenue from sale of goods in Sensors decreased by 7.2% compared with the same period of last year. Capacitive sensors declined by more than 28 % due mainly to a slowdown in the European market.

Controls continued to perform well. Revenue from sale of goods grew 8.1% mainly due to an impressive 42.6% increase in the energy field, particularly driven by ongoing strong demand for energy management and energy efficiency solutions.

Revenue from sale of goods in Switches declined by 9.5 %. Due to the enlargement of the product range towards selected applications in the vertical markets, such as heating, ventilation and air conditioning (HVAC), revenue from sales of goods of soft starters grew by 10.7 % versus the same period of last year. On the other hand, revenue from sales of goods of solid-state relays decreased by 16.7% mainly due to a general slowdown in the industrial automation markets across Americas and Asia.

Outlook

The Company’s approach to specific strategic industries is expected to keep generating growth opportunities. However, external factors such as supply chain issues, high stock levels at customers, continued inflation, economic as well as geopolitical uncertainties and potential local downturns will continue to affect the markets. While Carlo Gavazzi expects China and the USA to face further challenges in their recovery attempts, Europe and the rest of Asia should provide the Group’s main opportunities during the second half of the financial year.

The Carlo Gavazzi Group continues to focus on strengthening its sales organization in growing markets, increasing the penetration of its product portfolio in specific market areas, broadening market reach with new product releases for the “Internet of Things”, adapting its supply chain to maintain the business continuity of its customers and leveraging digitalization as a global enabler of its ambitions.

Consolidated key figures (CHF million)

Income statement	1. HY 2023/24	1. HY 2022/23	%
Bookings	83.1	133.1	-37.5
Revenue from sale of goods	97.5	104.7	-6.9
EBITDA	19.7	22.3	-11.7
EBIT	16.4	19.5	-15.9
Net profit for the half-year	12.3	13.8	-10.9
Balance sheet	30.9.2023	31.3.2023
Total equity attributable to owners of the Group	133.0	131.9	+0.8
Net working capital	59.9	64.2	-6.7
Net cash position	54.5	49.2	+10.8

Interim Report
The complete interim report can be downloaded from
http://www.carlogavazzi.com/en/investors/interim-report.html

Alternative Performance Measures (APM)
Definitions for all APM are included on our website available at:
www.carlogavazzi.com/en/investors/alternative-performance-measures.html

About Carlo Gavazzi: 
Carlo Gavazzi is a publicly listed international electronics group (SIX: GAV) with activities in the design and marketing of electronic control components for factory and building automation. 
Please visit our website: www.carlogavazzi.com 

For further information please contact:  
Rolf Schläpfer 
Hirzel.Neef.Schmid.Konsulenten 
Phone +41 43 344 42 42 
E-mail rolf.schlaepfer@konsulenten.ch

 

 

• Revenue from sale of goods grows 20.1% in local currency / 14.3% in CHF, reaching CHF 209.6 million (2021/22: CHF 183.4 million)
• Bookings decrease 1.0% to CHF 229.8 million (2021/22: CHF 232.1 million)
• Solid book-to-bill ratio of 1.1
• EBIT increases 26.8% to CHF 39.3 million (2021/22: CHF 31.0 million)
• EBIT margin increases 1.9 ppts to 18.8% (2021/22: 16.9%)
• Net profit for the year grows 28.2% to CHF 28.2 million (2021/22: CHF 22.0 million)
• Board of Directors proposes dividend of CHF 12.00 per bearer share

Steinhausen, June 22, 2023 – As a result of the recovery from the effects of the pandemic, Carlo Gavazzi achieved a strong result in the 2022/23 business year, despite the negative consequences of the war in Ukraine, continued strong inflation, increasing interest rates and the negative consequences for the global economy. Revenue from sale of goods, EBIT and net profit for the year grew by double digit rates. The Group’s very sound financial position was maintained.

On the back of solid sales in key markets and ongoing launches of new products, the Group’s revenue from sale of goods increased by 20.1 % in local currency while bookings grew by 4.2 %. Revenue from the sale of goods in Swiss Francs grew by 14.3% to CHF 209.6 million (CHF 183.4 million in 2021/22) while bookings decreased by 1.0% to CHF 229.8 million (CHF 232.1 million in 2021/22), resulting in a book-to-bill ratio of 1.1 at March 31, 2023. Bookings were lower in the second half of the year than in the first semester.

Gross profit increased by CHF 10.9 million to CHF 109.5 million (CHF 98.6 million in 2021/22), corresponding to a gross margin of 52.2%. Thanks to continued cost control, operating expenses increased less proportionately than revenue from sale of goods, from CHF 67.7 million in the previous year to CHF 69.8 million, notwithstanding the continuing investments in the business. In addition, the Group continued to invest during the year in the ongoing development of the new ERP system which is expected to be fully rolled out worldwide in the first half of the current business year.

Operating profit (EBIT) increased to CHF 39.3 million, compared to CHF 31.0 million in the previous year (+26.8% versus 2021/22). The EBIT margin increased 1.9 percentage points to 18.8% (16.9% in 2021/22). After considering financial expense of CHF 0.5 million and income taxes of CHF 10.5 million, the Group net profit for the year amounted to CHF 28.2 million (CHF 22.0 million in 2021/22), an increase of 28.2%.

At March 31, 2023, the total equity attributable to the owners of the Group stood at CHF 131.9 million (CHF 116.2 million in 2021/22), giving an equity ratio of 71.2% (2021/22: 68.7%) with a net cash position of CHF 49.2 million.

Proposals to the Annual Shareholders’ Meeting

The Board of Directors will propose to the Annual Shareholders’ Meeting that the Company pays a dividend of CHF 12.00 per bearer share and CHF 2.40 per registered share for the reporting period.

In light of the entry into force of the revised Swiss corporate law on 1 January 2023, the Board of Directors will submit for approval to the Annual Shareholders’ Meeting on 25 July 2023 a revision of the Articles of Association. The proposed revision of the Articles of Association will also include a conversion of all bearer shares into registered shares with a nominal value of CHF 15.00 each. The agenda containing the Board of Directors' proposals on all items is expected to be sent to shareholders and to be published in the Swiss Official Gazette of Commerce on 4 July 2023.

Double-digit growth in Europe and Americas, slight decrease in Asia Pacific

Revenue from sale of goods in local currency grew at double-digit rates across Europe and the Americas but decreased in Asia-Pacific.

In Europe, revenue from sale of goods recorded a strong growth rate at 26.5 % versus the previous year thanks to further strengthening of activities in energy efficiency in the Central and Southern European countries and to a good performance in industrial automation in the whole area.

Revenue from sale of goods in the Americas grew by 12.2 % compared to the previous year, driven by very good performance in the US and in Mexico with the implementation of effective sales programs across the main strategic industries.

In Asia-Pacific, revenue from sale of goods decreased by 1.1 % versus previous year mainly due to manufacturing contraction in the Chinese market following local pandemic policies and increasing trade barriers.

Concerning the geographical distribution, revenue from sale of goods outside Europe reached 31.2%, with the Americas and Asia-Pacific accounting for 19.0% and 12.2%, respectively.

Energy management products drive Control sales

Controls, the Group’s largest product line, performed above the previous year thanks to a very high contribution from energy management products, which grew by more than 50%. This positive trend results from the increase in demand for energy monitoring products such as the EM500 series in the e-mobility and electrification industries. Furthermore, “Internet of Things” (IOT) products increased by more than 16% thanks to the improved penetration of the energy and building efficiency market due to the newly launched UWP 4.0. This monitoring gateway and controller provides an enhanced comprehensive solution for gathering information from meters and sensors, storing data into its secure database and exchanging it with the local Building Management Systems.

Sensors performed slightly above the previous year. A positive contribution came from inductive sensors, which increased by more than 3% versus the previous year mainly due to the new ICF family of products. Developed in the Danish competence center, these sensors have been specifically designed to resist shocks, vibrations and impacts, high and low temperatures and frequent washdown cycles. They are used by strategic OEM manufacturers of conveyor systems, agricultural machines, industrial doors and metal works in general.

Switches grew by more than 24% last year, driven by the solid-state relays RG platform across all markets in industrial automation. The newly launched RL Series further enhances reliability where panel space is restricted and unplanned machine downtime must be avoided. This applies especially for plastic machines as well as food & beverage machines.

Strategy

The Group’s strategy remains centered on developing new and differentiated automated products to accelerate the penetration in specific, increasingly growing industries worldwide.

Furthermore, the Group is focused on continuous improvement of its business model, by embracing excellence and improving its agility to changing market conditions. The main initiatives include new products from engineering interactions with the leading OEMs of our strategic industries, improved channel and go-to-market strategies, the roll-out of the new global ERP system with enhanced logistics and supply chain alignments, the re-allocation and duplication of production capabilities, and ultimately the enhancement of customer service indicators worldwide.

Outlook

In full awareness of the acute geopolitics, inflationary economies and global supply chain issues, Carlo Gavazzi Group believes that its commitment to continuously developing operational excellence and anticipating core market trends will lead the Group to keep performing well in the industrial and building automation markets. As adversity will persist in the foreseeable future, our ability to adapt to changing conditions while increasing our presence in high growth industries will generate a continuous favorable outcome of the Group’s results. As many customers are currently tending to reduce their stocks, Carlo Gavazzi expects incoming orders to slow down somewhat in the short term. The Group therefore does not expect the same growth rate for the current year as in the 2022/23 business year. Nonetheless, increased differentiation and investments in markets that require constant updates into value-innovation will prove beneficial to maintain positive sales growth rates during the next three to five years term. In an increasingly complex world, Carlo Gavazzi intends to accelerate investments to fulfil customer requirements and to further develop our product offering and processes.

 

Consolidated key figures (CHF million)

Income Statement	2022/23	2021/22	%
Bookings	229.8	232.1	-1.0
Revenue from sale of goods	209.6	183.4	14.3
EBITDA	44.9	36.9	21.7
EBIT	39.3	31.0	26.8
EBIT margin	18.8%	16.9%
Net profit for the year	28.2	22.0	28.2
Balance Sheet (as at 31 March)	2023	2022
Net working capital	64.2	32.4	98.1
Total equity attributable to owners of the Group	131.9	116.2	13.5
Total liabilities and equity	185.3	169.1	9.6
Equity ratio	71.2%	68.7%

For some figures Carlo Gavazzi Group uses alternative performance measures (APMs) which are not defined in accordance with International Financial Reporting Standards (IFRS).
The respective definitions can be found at:
Carlo Gavazzi Alternative performance measures.

The complete annual report 2022/23 can be downloaded from the website at:
Carlo Gavazzi Annual Report 2022/23.

 

About Carlo Gavazzi: 
Carlo Gavazzi is a publicly listed international electronics group (SIX: GAV) with activities in the design and marketing of electronic control components for factory and building automation. 
Please visit our website: www.carlogavazzi.com 

For further information please contact:  
Rolf Schläpfer 
Hirzel.Neef.Schmid.Konsulenten 
Phone +41 43 344 42 42 
E-mail rolf.schlaepfer@konsulenten.ch

 

Steinhausen, May 26, 2023 – Carlo Gavazzi Holding AG informs today about preliminary unaudited key figures for the 2022/23 business year.

As a result of the recovery from the effects of the pandemic, the Group achieved a strong result. In the period between April 1, 2022, and March 31, 2023, Carlo Gavazzi expects to reach a total revenue from sale of goods of approx. CHF 209 million (same period of previous business year: CHF 183.4 million). Thanks to the sound management of operating expenses, EBIT is expected to increase to approx. CHF 39 million (previous year: CHF 31.0 million) and net profit for the year to around CHF 28 million (previous year: CHF 22.0 million).

However, as of March 31, 2023, bookings amounted to approx. CHF 229 million (previous year: CHF 232.1 million) and were lower in the second half of the year than in the first semester. Because of these lower bookings the growth of net profit has decreased in the second half of the business year.

The Group therefore does not expect the same growth rate for the current year as in the 2022/23 business year.

Carlo Gavazzi will announce the detailed full year audited figures on June 22, 2023.

About Carlo Gavazzi: 
Carlo Gavazzi is a publicly listed international electronics group (SIX: GAV) with activities in the design and marketing of electronic control components for factory and building automation. 
Please visit our website: www.carlogavazzi.com 

For further information, please contact:  
Rolf Schläpfer 
Hirzel.Neef.Schmid.Konsulenten 
Phone +41 43 344 42 42 
E-mail rolf.schlaepfer@konsulenten.ch