Mikron Group reports a continued strong performance

Boudry, July 19, 2024, 7.00 a.m. – In the first half of 2024, the Mikron Group’s strong performance continued. Group net sales increased to CHF 190.7 million (+7.0%) in the first half of 2024 (first half of 2023: CHF 178.3 million), operating profit amounted to CHF 14.9 million (first half of 2023: CHF 14.6 million, +2.1%), and the operating profit margin was 7.8% of net sales (first half of 2023: 8.2%). The sales growth was driven by continued strong demand in Europe for automation solutions.

At CHF 220.9 million, the Mikron Group’s order intake for the first half of 2024 was 11.2% below the high level of the first half of 2023 (CHF 248.7 million). At CHF 340.0 million, however, the order backlog at the end of June 2024 was 0.7% higher than at the end of June 2023.

The Mikron Group’s net sales increased by 7.0% in the first half of 2024: from CHF 178.3 million in the first half of 2023 to CHF 190.7 million. While the Automation business segment further increased its net sales in Europe, the demand in the USA has temporarily cooled somewhat. Machining Solutions’ net sales increased by 1.5% – a good result given the challenging market conditions, particularly in Germany. With a 62% share of net sales, Europe (including Switzerland) remained the Mikron Group’s principal sales market in the first half of 2024. Mikron increased net sales in Europe by 20.6% compared with the first half of 2023, and in Asia by 21.8%. In North America net sales declined by 24.2%.

Profitability

Operating profit amounted to CHF 14.9 million in the first half of 2024 (first half of 2023: CHF 14.6 million, +2.1%). This corresponds to an operating profit margin of 7.8% for the first half of 2024 (8.2% for the first half of 2023). The slight decline in the margin is due to the temporary weakness of the US markets and investments in strategic growth projects such as the digitalization of the product range. At CHF 14.6 million, net profit for the first half of 2024 is 5.0% higher than the 2023 half-year result (CHF 13.9 million). The 2023 half year net profit included a one-time positive effect of CHF 2.1 million, resulting from the sale of a non-operating property in Nidau (Switzerland).

Cash flow

Free cash flow amounted to CHF 17.2 million in the first half of 2024 (first half of 2023: CHF 27.4 million). The fluctuation of free cash flow is mainly due to the timing of customer prepayments.

Outlook

Forecasts for the second half of the year remain difficult due to the unpredictability of the global economy. Despite challenging market conditions particularly in Machining Solutions, Mikron expects a full year result in the range of the previous year.

Key Figures for the Mikron Group in the first half year 2024

1) Alternative performance measure, see Mikron Semiannual Report 2024, pages 16 and 17

2) End of period

Publication of semiannual results for 2024

The semiannual results will be published at the same time as this ad hoc announcement in the form of the 2024 Semiannual Report: www.mikron.com/financial-reports