The SFS Group continued to navigate a challenging economic environment in the first half of 2024, one marked by inconsistent business performance and inventory reductions in individual end markets. With sales of CHF 1,544.9 million and an EBIT margin of 11.7%, SFS is well on its way to achieving the targets it set for the 2024 financial year.
Like in 2023, global economic growth fell short of its potential in the first half of 2024. Reasons for this include the weak international economy, geopolitical tensions and the associated lower investment demand. The results in SFS’s individual business areas felt the impact of the challenging environment to different degrees. While all the divisions in the Engineered Components segment improved over the previous year, the repercussions of this environment were still quite noticeable in the business with construction customers (Fastening Systems segment) and industrial manufacturing customers (Distribution & Logistics segment).
The SFS Group generated third-party sales (sales) of CHF 1,544.9 million in the first half of 2024. This corresponds to a year-over-year reduction of –2.3%. Currency effects reduced sales growth by –2.4%. Organic growth of 0.1% was achieved on a like-for-like basis.
Profitability was influenced by mix effects and uneven capacity utilisation. All in all, SFS generated operating profit (EBIT) of CHF 180.8 million. The EBIT margin amounts to 11.7% of net sales.
As of May 1, 2024, SFS acquired Etanco S.A.U., a Spanish distributor of fasteners, fixings, and accessories to the building envelope.
Expectations for the 2024 financial year updated
Our top priority remains placing highest focus on customers and ongoing efforts to pursue forward-looking innovation projects. We want to identify the chances and opportunities that go hand-in-hand with the current changes and systematically seize them.
From the second half of the year onward, SFS anticipates a slight economic recovery that is sustained by global demand and improved industrial momentum. The SFS Group expects the 2024 financial year to bring slight organic growth and a slight improvement in the EBIT margin compared to the previous year.
