Datwyler improved its profitability in the first half of 2024.

Altdorf, Switzerland – Datwyler has succeeded in the first half of 2024 in increasing the operating result (EBIT) to CHF 67.5 million and the EBIT margin to 11.8% despite the slight decrease in revenue. In the same period, revenue declined to CHF 572.5 million in a weak market environment. Adjusted for currency effects, this equates to a decline of 2.4%. The acquisition of attractive new business in all business units shows that the long-term growth drivers in the markets are intact and Datwyler is a sought-after partner for new and existing customers. For 2024 as a whole, Datwyler expects an EBIT margin above the prior year and revenue in the range of the prior year.

Datwyler was once again confronted with predominantly weak sales markets and the ongoing reduction in security stocks by healthcare customers in the first half of 2024. In addition, there was a lack of CHF 7.5 million in revenue from components for COVID vaccines compared to the prior year period. Overall, revenue decreased to CHF 572.5 million (previous year: CHF 602.7 million). Adjusted for negative currency effects, this translates to a decline of 2.4%.

Despite persistent weak demand and the resulting ongoing underutilization at several production sites, Datwyler succeeded in increasing the operating result (EBIT) by 11.6% to CHF 67.5 million (previous year: CHF 60.5 million). As a result, the EBIT margin improved by 180 basis points to 11.8% (previous year: 10.0%). Due to the higher EBIT, the net result also increased to CHF 38.6 million (previous year: CHF 32.1 million). The slightly higher tax expenses were almost compensated by the slightly lower financial expenses. The net result per share increased to CHF 2.27 (previous year: CHF 1.89). The strong Swiss franc also had a negative impact on the profit figures.

By successfully implementing extensive optimization measures, we were able to increase our profitability despite the weak market environment. We are working consistently to further improve our commercial and operational excellence and are driving our promising innovation and growth projects forward in a targeted manner. As a result, we are laying a solid foundation for profitable future growth during the current market phase.

Datwyler is using the current market phase to further optimize its structures and processes. The optimization of its cost structures, the price adjustments implemented and lower energy costs form the basis for an improved profit margin. In the first half of 2024, the company was once again able to acquire promising projects with existing and new customers in all business units. Encouraged by this, Datwyler is driving forward its activities in the healthcare area and the transformation to e-mobility with high priority. Furthermore, Datwyler is investing consistently in its innovation and growth projects. Examples of these include film-coated healthcare products, magnetically active or electroactive polymers and soft dry electrodes for wearable applications. An industrial-scale pilot production line for electroactive polymers will go into operation in the second half of 2024.

Datwyler is continuously developing its sustainability measures. The globally recognized rating agency EcoVadis awarded the company the platinum standard for its sustainability performance for the first time in the reporting period. The highest standard available, this places Datwyler in the top 1% of more than 130,000 companies from 180 countries that are rated by EcoVadis each year. Moreover, Datwyler also undertook with effect from the end of June 2024 to have its commitment to reducing its environmental footprint validated in accordance with the Science Based Targets initiative (SBTi). The SBTi commitment and the EcoVadis rating are highly important to customers, especially in the healthcare industry.