Datwyler launches transformation program «ForwardNow»

Altdorf, Switzerland – Datwyler is launching a transformation program for the period 2025 to 2027 to accelerate revenue and profitability growth. The «ForwardNow» program with four clearly defined action areas is expected to result in one-time costs of approximately CHF 38 million in the current fiscal year 2024 and sustainable annual profit improvements of approximately CHF 24 million after the successful implementation of all measures.

Datwyler, a leading provider of system-critical components, has been facing persistently challenging markets, rapidly changing customer needs and technologies, as well as geopolitical uncertainties for more than two years. Particularly in the important healthcare market, demand remains subdued due to the reduction of safety stock by customers, despite intact long-term growth trends. The recovery in the automotive market and volume growth in battery electric vehicles are progressing more slowly than originally expected. The Board of Directors and Executive Management of Datwyler have decided to address these current challenges with a comprehensive transformation program. They are convinced that this program will unlock significant synergies, further enhance competitiveness, and better position the company for the future.

The “ForwardNow” transformation program enables Datwyler to accelerate revenue and profitability growth by addressing identified improvement potential over a three-year period (2025–2027) in four action areas:

Streamlining the production network: By rightsizing and realigning production and industrialization capacities to meet the needs of specific regions and markets, Datwyler will further reduce its cost base and enhance its ability to serve customers worldwide.

Strengthening commercial excellence: The sales organization is systematically directed towards market segments and customer groups where Datwyler can achieve profitable growth, positioning the company even more strongly as a preferred development partner.

Focusing the product portfolio: A clear emphasis on high-value products with solid margin profiles will enable the company to reduce internal complexity and deploy its resources more effectively, including accelerating the market introduction of innovations.

Future-Proof “Target Operating Model”: Datwyler will unlock significant synergies through a gradual adjustment of its organizational structure, the introduction a unified process framework, and company-wide standards. This will create a solid foundation for future growth.

The measures associated with the transformation program are expected to result in one-time costs of approximately CHF 38 million in the current fiscal year 2024, of which around CHF 9 million will be attributed to extraordinary impairments. During the three-year program period, the company anticipates cumulative profit improvements of approximately CHF 52 million. Following the successful completion of all measures within the transformation program, Datwyler expects sustainable annual profit improvements of approximately CHF 24 million.

For fiscal year 2024, Datwyler anticipates a currency-adjusted revenue slightly below the previous year’s level, while the EBIT margin, adjusted for one-time costs, is expected to be slightly above the prior year’s figure.

Further explanations regarding the transformation program and its potential impact on the company’s medium-term goals will be provided at Datwyler’s media and investor conference on 6 February 2025, when the 2024 annual results are presented.