Rieter Holding Reports Lower Sales and Order Intake in Preliminary 2023 Results

Rieter Holding, the Swiss producer of textile machinery, has announced its preliminary 2023 results, which reveal a decline in sales and order intake. The company attributes this decrease to the ongoing challenges in the market.

Sales Decline by 6.1% to CHF 1.42 Billion

According to the report, Rieter Holding's sales for the year were CHF 1.42 billion, representing a 6.1% decrease compared to the previous year.

Order Intake Plunges to CHF 541 Million

The company also experienced a significant drop in order intake with figures falling from CHF 1.16 billion to CHF 541 million. Rieter Holding attributes this decline to several factors, including geopolitical uncertainties, high financing costs, and consumer reticence in important markets.

Delayed Project Commitments

Although there was an increase in demand during the latter half of the year, the company lamented that project commitments were unable to materialize as anticipated.

Improved Profitability in Second Half

Despite the challenges faced, Rieter Holding did witness improved profitability in the second half of the year. Consequently, the company expects its earnings before interest and taxes margin to be around 7% for the full year, which aligns with the upper end of the previously defined guidance of 5% to 7% announced in October.

Future Updates

Rieter Holding plans to release further information on these results, as well as its 2023 annual report and 2024 outlook, on March 13th. Stay tuned for more details.