Strong business result in 2022

Demand for Bucher Industries’ products and services normalised at a very high level during the reporting period. Thanks to the employees’ hard work, the divisions again coped very well with the difficulties in the supply chain and increased sales by 13%. The operating profit margin rose to a very good 11.8%. Profit for the year amounted to CHF 335 million, significantly higher than the previous year, and earnings per share were a high CHF 32.36. The board of directors proposes a dividend of CHF 13.00 per share.

Group

Change

CHF million

2022

2021

%

%1)

%2)

Order intake

3’858

3'948

-2.3

1.5

0.7

Net sales

3’597

3'176

13.2

17.2

16.5

Order book

2’081

1'873

11.1

15.9

14.2

Operating profit (EBIT)

425

352

20.8

% of net sales

11.8%

11.1%

Profit for the year

335

269

24.3

% of net sales

9.3%

8.5%

Earnings per share in CHF

32.36

25.96

24.7

Operating free cash flow

69

271

-74.7

Net cash/debt

457

551

-17.0

Total assets

2’979

2'768

7.6

Equity

1’702

1'533

11.0

Equity ratio

57.1%

55.4%

Return on equity (ROE)

20.7%

18.4%

Net operating assets (NOA) average

1’178

1'052

12.0

Return on net operating assets (RONOA)
after tax

28.6%

25.6%

Average number of FTEs

14’053

13’375

5.1

4.6

Employees at 31 December

14’876

13’835

7.5

4.2

CO2 emissions in tCO2e

89’672

93’317

-3.9

1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects

Bucher Industries’ markets weakened over the course of 2022, but sentiment remained positive overall. Order intake continued to rise until mid-year, but it declined in the second half of the year and ended at the same high level as last year overall. The difficulties in the supply chain remained challenging due to the COVID-19 measures in China and the tense energy situation. It was also difficult to recruit qualified employees, particularly in the USA. Although this negatively impacted process efficiency, sales again increased significantly due to increased prices and higher volumes. The Group’s order book remained very strong, with seven months of sales. The operating profit rose to CHF 425 million and the operating profit margin to a very good 11.8%. Profit for the year amounted to CHF 335 million, which was significantly higher than in the previous year, and earnings per share were a high CHF 32.36.

Further increase in return on invested capital  The return on net operating assets after tax (RONOA) increased again and reached a very high 28.6%. This is due to the strong sales growth and the resulting further increase in the operating profit margin. Net operating assets increased markedly year on year due to volume-related factors. The increase was exacerbated by the difficulties in the supply chain, as well as price increases for purchased parts, and had a negative impact on free cash flow. The financial position remains very solid, with net liquidity of CHF 457 million at the end of the year and an equity ratio of 57%.

Kuhn Group

Change

CHF million

2022

2021

%

%1)

Order intake

1’613

1’676

-3.8

-0.6

Net sales

1’510

1’319

14.5

17.6

Order book

1’019

941

8.3

12.1

Operating profit (EBIT)

176

161

9.6

% of net sales

11.7%

12.2%

Average number of FTEs

5’994

5’740

4.4

Employees at 31 December

6’011

5’830

3.1

1) Adjusted for currency effects

Very high production volume  Agricultural machinery remained in strong demand during the reporting period. Prices for agricultural products stayed at a good level, which ensured high farm incomes despite rising cost pressures. Dealers, however, reported slightly weaker machinery purchases by farmers from mid-2022. Kuhn Group’s order intake fell below the previous year’s exceptionally high level, mainly due to currency effects; its order book increased further. Supply chain and recruitment difficulties persisted. Capacity utilisation was very high throughout the whole year. The high production volumes, combined with price increases, led to a significant increase in sales, especially in Brazil. The operating profit margin was only slightly below the previous year’s high level and included impairments of CHF 6 million for the business activities in Russia.

Bucher Municipal

Change

CHF million

2022

2021

%

%1)

%2)

Order intake

619

599

3.4

8.2

Net sales

529

523

1.3

5.9

Order book

310

237

30.9

37.1

Operating profit (EBIT)

32

33

-3.7

% of net sales

6.0%

6.3%

Average number of FTEs

2’421

2’355

2.8

2.6

Employees at 31 December

2’523

2’404

5.0

4.4

1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects

Production efficiency negatively impacted  After a very dynamic first half of the year, order intake began to normalise from mid-year onwards and it increased slightly overall. As in the previous year, production in 2022 was severely impacted by bottlenecks in global supply chains. This had a negative impact on production efficiency, especially in the first half of the year. Production volumes increased in the second half of the year and sales ended in line with the previous year overall. The operating profit margin decreased slightly due to the delivery delays, the reduction of operations in Russia and the challenging business environment in China. On 22 February 2023, Bucher Municipal acquired the remaining 80% of SSV Environnement, a company with headquarters in Goussainville, France, sales of CHF 11 million and 30 employees. With this acquisition, Bucher Municipal strengthens its market presence in France and continues to expand its service business.

Bucher Hydraulics

Change

CHF million

2022

2021

%

%1)

%2)

Order intake

764

856

-10.8

-8.3

-10.2

Net sales

756

681

11.0

13.5

12.0

Order book

316

320

-1.2

1.9

1.9

Operating profit (EBIT)

101

88

15.2

% of net sales

13.4%

12.9%

Average number of FTEs

2’921

2’704

8.0

7.5

Employees at 31 December

3’092

2’928

5.6

5.6

1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects

Increase in sales and operating profit margin  Order intake declined from a very high level. This decline was particularly pronounced in China. Normalisation of demand also set in during the second half of the year in parts of Europe and in North America. While there was a clear decline in the important materials handling and construction machinery segments, demand remained at a high level for hydraulic solutions in agricultural machinery. Capacity utilisation was high throughout the whole year. The division’s sales rose significantly, partly due to price increases, especially in North America. The operating profit margin rose due to higher sales, the good cost structure and price adjustments.

Bucher Emhart Glass

Change

CHF million

2022

2021

%

%1)

Order intake

578

522

10.8

18.3

Net sales

525

394

33.2

42.2

Order book

319

285

11.8

19.5

Operating profit (EBIT)

98

62

56.8

% of net sales

18.6%

15.8%

Average number of FTEs

1’600

1’577

1.5

Employees at 31 December

1’678

1’614

4.0

1) Adjusted for currency effects  

Excellent business performance  Glass containers enjoyed strong demand and customers’ production capacities remained tight. The rapid upturn in investments in plant for the production of glass containers therefore continued, despite high energy prices particularly in Europe. Bucher Emhart Glass’ order intake rose significantly from a very high level. The production capacity was heavily utilised at all locations. Sales grew significantly compared with the low level of the previous year. The operating profit margin increased further from an already high level and reached an excellent value. This was due to the division’s high sales volume and continued low cost base, combined with its improved efficiency and positive currency effects.

Bucher Specials

Change

CHF million

2022

2021

%

%1)

%2)

Order intake

363

366

-0.8

3.2

-1.7

Net sales

347

321

8.0

12.1

8.8

Order book

154

121

27.6

34.4

8.6

Operating profit (EBIT)

30

28

8.7

% of net sales

8.6%

8.6%

Average number of FTEs

1’057

937

12.8

8.0

Employees at 31 December

1’503

995

51.1

6.2

1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects

Stable margin development  The reporting period was characterised by positive market sentiment overall. Only the markets of Bucher Landtechnik declined from their high level after several years of very good performance. Bucher Specials’ order intake was in line with the previous year. All four business units continued to struggle with bottlenecks on the supplier side. Sales increased, partly due to the strong order book at the beginning of the year. The operating profit margin remained stable despite a significant increase in material costs and expenditure on acquisitions.

Long-term and sustainable contribution

Bucher Industries’ strategy has always been geared to the long term and, over the past year, it was further refined and formalised with a view to economic, ecological and social considerations. In the area of environment, social affairs and ethics, eleven topics were defined as material for the company, with corresponding ambitions, key indicators and targets. These topics complement the Group’s principles: the products and solutions which contribute to society, good corporate governance and economic value creation. As a result, the annual report 2022 provides information on the four areas of finance, environment, social affairs and ethics.

Outlook for 2023

The Group expects demand to continue to normalise starting from a very high level in the course of this year. The extraordinarily strong order book at the end of 2022 means that capacities will remain highly utilised, particularly in the first half of the year. Increased personnel and other operating costs can only be absorbed in part through price increases and are therefore likely to intensify pressure on margins. All the divisions are impacted by these challenges but to different degrees. Kuhn Group expects sales and the operating profit margin to be roughly in line with 2022. Bucher Municipal anticipates that sales will grow slightly and the operating profit margin will recover. Bucher Hydraulics expects similar sales as in 2022 and a slightly lower operating profit margin. Bucher Emhart Glass anticipates that sales will be in line with the very high level of 2022. The operating profit margin should be in the range of the 2021 value. Bucher Specials expects sales to increase, partly as a result of an acquisition made in the reporting period, and the operating profit margin to be roughly in line with 2022. The Group anticipates that sales will be roughly in line with 2022, with offsetting price and currency effects. The operating profit margin will come under pressure, mainly due to higher personnel costs, and should be slightly below 2022. As a result, the profit for the year is likely to be slightly lower.

Consistent dividend policy

The board of directors proposes a dividend of CHF 13.00 per share to the annual general meeting on 19 April 2023. The dividend paid in the previous year was CHF 9.50 per share. The proposal takes into account a consistent dividend policy, the profit for the year 2022, the solid financial position, the outlook for the current year as well as internal and external investment opportunities.

Annual general meeting

The annual general meeting of Bucher Industries AG will be held on 19 April 2023 at the Hotel Mövenpick in Regensdorf, starting at 3.30 p.m. The board of directors proposes to the annual general meeting the re-election of Philip Mosimann, as chairman, and of the current members of the board of directors and of the compensation committee, with the exception of Valentin Vogt, who will not stand for re-election. The board of directors thank him for his dedicated service, in particular as the long-standing chairman of the compensation committee. It proposes to the annual general meeting the election of Urs Kaufmann as a new board member and member of the compensation committee. Further resolutions to be proposed can be found in the invitation to the annual general meeting, which will be sent out to shareholders on 16 March 2023. Shareholders registered in the company’s share register on 13 April 2023 will be entitled to vote at the annual general meeting. From 14 to 19 April 2023 the share register will be closed for entries. Shares purchased on or after 21 April 2023 are not entitled to a dividend. The dividend will be paid out on 25 April 2023. The 2022 annual report will be available for download from 24 February 2023, and the invitation to the annual general meeting from 16 March 2023, at bucherindustries.com.

The annual report, the annual press and analysts’ conference presentation as well as the investor relations handout on the results for the financial year 2022 are available on bucherindustries.com under “Media dossiers”.