Rieter Semi Annual Report 2024
Rieter Semi Annual Report 2024
Rieter Semi Annual Report 2024
KEY FIGURES
Rieter
Order intake 325.0 403.4
Sales 758.2 421.0
Operating result before interest, taxes, depreciation, and amortization (EBITDA) 52.2 35.7
Operating result before interest, taxes, and restructuring 28.2 9.1
(EBIT before restructuring and impairment)
• in % of sales 3.7% 2.2%
Operating result before interest and taxes (EBIT) 25.2 8.9
• in % of sales 3.3% 2.1%
Net result 13.3 1.7
Basic earnings per share (CHF) 2.97 0.39
Free cash flow 10.0 – 1.1
Net debt at the end of the reporting period – 298.9 – 243.9
Equity in % of total assets at the end of the reporting period 23.0% 31.9%
Number of employees (excluding temporaries) at the end of the reporting period 5 555 4 831
Financial report
Thomas Oetterli
Chairman of the Board of Directors
and Chief Executive Officer
DEAR SHAREHOLDER
In the first half of 2024, the Rieter Group posted an Order intake
order intake of CHF 403.4 million (first half of 2023: In line with expectations, the order intake of CHF
CHF 325.0 million), which represents a significant in- 403.4 million in the first half of 2024 was significantly
crease of 24% compared with the same period of the higher than in the same period of the previous year
previous year. Sales were CHF 421.0 million (first half (first half of 2023: CHF 325.0 million). The increase in
of 2023: CHF 758.2 million). As expected, this was demand for new machines in the Business Group
44% lower than the previous year. Machines & Systems contributed to this positive de-
velopment. Orders came mainly from China, India,
In a challenging business environment, Rieter and Türkiye. At the same time, demand for consum-
achieved an EBIT margin of 2.1% thanks to strict cost ables, wear & tear and spare parts declined slightly
management. The systematic implementation of the due to continued weak demand for textiles.
“Next Level” performance program led to a strength-
ening of profitability. Rieter recorded a profit at the Sales by business group
EBIT level of CHF 8.9 million in the first half of 2024 Sales in the Business Group Machines & Systems de-
(first half of 2023: CHF 25.2 million). The reduction of creased by 62% to CHF 198.7 million and in the Busi-
the cost base particularly in research and develop- ness Group Components by 12% to CHF 126.5 million.
ment as well as selling and administrative expenses The decline in sales in both business groups is a con-
contributed to this positive result. sequence of the low order intake in 2023. In contrast,
Rieter Group . Semi-Annual Report 2024 . Letter to the shareholders 5
sales in the Business Group After Sales increased by balanced mix between the business groups in the me-
4% year-on-year to CHF 95.8 million. Growth was dium term.
achieved through an increase in installation services
and sales of engineered solutions. Demand for con- Outlook for the full year 2024 specified
sumables, wear & tear and spare parts will depend on The markets remained under pressure from the eco-
spinning mill capacity utilization in the months ahead. nomic slowdown, high inflation rates and noticeably
Rieter expects the global increase in spinning mill dampened consumer sentiment. The first signs of a
capacity to have a positive impact on volumes in the recovery in financial year 2024 have emerged in the
second half of 2024. key markets of China and India. Rieter expects de-
mand to pick up further in the coming months.
Order backlog
On June 30, 2024, the company had an order backlog For the full year 2024, Rieter anticipates sales in the
of around CHF 640 million (first half of 2023: around range of CHF 900 million to CHF 1 billion and a posi-
CHF 1 100 million). This corresponds to a similar level tive EBIT margin of 2% to 4%.
at the end of 2023.
Winterthur, July 17, 2024
EBIT, net result and free cash flow
In the first half of 2024, Rieter posted a profit of CHF
8.9 million at the EBIT level, with an EBIT margin of
2.1% (first half of 2023: CHF 25.2 million) and a net
result of CHF 1.7 million (first half of 2023: CHF 13.3 Thomas Oetterli
million). The decrease is due to the lower sales vol- Chairman of the Board of Directors
ume in the 2024 financial year. and Chief Executive Officer
In the first half of 2024, free cash flow was CHF -1.1
million (first half of 2023: CHF 10.0 million). The neg-
ative free cash flow was mainly due to cash outflows
related to the settlement of provisions for the “Next
Level” performance program.
1 GENERAL INFORMATION
1.1 BASIS FOR PRESENTATION AND SIGNIFICANT ment, the consolidated statement of changes in equity, and the
ACCOUNTING POLICIES consolidated cash flow statement are presented in condensed
form.
The consolidated semi-annual financial statements of Rieter Hold-
ing Ltd. and its subsidiaries (“Rieter” or “Rieter Group”) have
been prepared in accordance with IAS 34 Interim Financial 1.2 SIGNIFICANT ACCOUNTING ESTIMATES AND
Reporting. They are based on the financial statements of the in JUDGMENTS
dividual group companies prepared in accordance with Rieter’s
uniform accounting policies as of June 30, 2024. The significant Rieter has reviewed the areas involving relevant significant ac-
accounting policies summarized in the Annual Report 2023 have counting estimates and key judgments (see note 1.2 in the consol-
been amended in the first half year of 2024 in accordance with idated financial statements 2023), in particular the assumptions
the new and revised IFRS Standards and Interpretations. The and the financial plans underlying the impairment test for the
implementation of these changes in IFRS had no significant im- goodwill and the intangible assets allocated to Accotex. There
pact on the consolidated semi-annual financial statements. was no indication for impairment as a result of the review.
The following foreign exchange rates of importance for Rieter were used in the preparation of the consolidated semi-annual financial
statements as well as for the financial statements of group companies:
2 SIGNIFICANT EVENTS
2.1 ACQUISITIONS damage at Rieter’s repair center and the financial loss incurred
due to business interruption have been evaluated in cooperation
On January 5, 2024, Rieter Holding Ltd. (Winterthur, Switzerland) with the respective insurance company. The insurance claim for
acquired 100% of the shares of Petit Spare Parts SAS (Aubenas, property damage at Rieter’s repair center and the financial loss
France). This entity is active in the business of spare parts for incurred from business interruption has been settled.
textile machines and employs ten full-time employees. The pur-
chase price amounted to CHF 1.4 million. The acquired net assets Rieter’s business activities in Ukraine, Russia, Belarus, and in the
primarily consist of inventories. No goodwill resulted from the Middle East are not significant. Consequently, the military con-
acquisition. flicts in Ukraine and the Middle East have no direct impact on
Rieter, as neither subsidiaries (assets) nor major customers are
based in this region.
2.2 EARTHQUAKE IN TÜRKIYE AND GLOBAL ECONOMIC
AND GEOPOLITICAL UNCERTAINTIES
2.3 RESTRUCTURING AND IMPAIRMENT
On February 6, 2023, a devastating earthquake occurred in south-
ern Türkiye and northern Syria. This region is home to an import- On July 19, 2023, Rieter launched the “Next Level” performance
ant part of the Turkish textile industry and thus represents a key program aimed at strengthening sales excellence, sharpening cus-
market for Rieter. The earthquake had a significant impact on tomer focus, improving cost efficiency in production, and optimiz-
Rieter’s top line. Sales to and order intake from Türkiye decreased ing fixed cost structures. Measures defined in the “Next Level”
in 2023 and particularly in 2024 due to a lack of investments in performance program were implemented in 2023 and mostly con-
new machinery and systems in combination with further post- cluded in the first half of 2024.
ponements and cancellations of existing orders. The property
The following table presents the operating result before interest and taxes (EBIT) of Rieter before and after restructuring and impair-
ment:
3 SEGMENT INFORMATION
Segment information is based on the Group’s organization and aggregation of operating segments. Rieter Machines & Systems
management structure and internal financial reporting to the develops and manufactures machinery and systems used to con-
Chief Operating Decision Maker up to the level of EBIT. The Chief vert natural and man-made fibers and their blends into yarns.
Operating Decision Maker at Rieter is the Chief Executive Officer. Rieter Components supplies technology components to spinning
Segment reporting is based on the same accounting policies as mills and to textile machinery manufacturers as well as precision
those used for the preparation of the consolidated financial winding machines. Rieter After Sales serves Rieter customers
statements. The Group consists of three reportable segments: with spare parts, value-adding after sales services, and solutions
Machines & Systems, Components, and After Sales. There is no over the entire product life cycle.
Rieter Group . Semi-Annual Report 2024 . Notes to the consolidated semi-annual financial statements 11
The result that cannot be allocated to reportable segments In the first half of 2023, the result that cannot be allocated to the
includes all those elements of income and expenses that cannot reportable segments contains restructuring costs in the amount of
be allocated on a reasonable basis to the segments, such as CHF 2.4 million.
certain costs of central functions and infrastructure (internally
reported as “Corporate”) as well as the elimination of unrealized
profits on inter-segment deliveries.
12 Rieter Group . Semi-Annual Report 2024 . Notes to the consolidated semi-annual financial statements
4 SALES
The operating result before interest, taxes, depreciation, and amortization (EBITDA) is used by Rieter as an alternative performance
measure. The table below contains a reconciliation of EBITDA:
In the first half of 2024, the subsidiary Rieter Management AG The changes in Group structure had an insignificant impact on the
(Winterthur, Switzerland) was merged into Maschinenfabrik consolidated semi-annual financial statements for 2024.
Rieter AG (Winterthur, Switzerland), which in turn changed its
name to Rieter Ltd. (Winterthur, Switzerland). Moreover, the sub- In the first half of 2023, Rieter transferred the entire business in
sidiary Hogra Holding AG (Freienbach, Switzerland) was merged Uzbekistan from Rieter Uzbekistan FE LLC (Tashkent, Uzbekistan)
into Tefina Holding-Gesellschaft AG (Zug, Switzerland). Further- to the newly established and wholly owned subsidiary Rieter
more, Rieter Ingolstadt GmbH (Ingolstadt, Germany) was merged Textilsystemen LLC (Tashkent, Uzbekistan). After an increase in
into Spindelfabrik Suessen GmbH (Suessen, Germany). Addition- share capital fully financed by an external investor, Rieter lost
ally, Rieter acquired Petit Spare Parts SAS (Aubenas, France, see control of Rieter Uzbekistan FE LLC and therefore deconsolidated
note 2.1). As part of a reorganization, Changzhou Rieter Textile this subsidiary in the first half of 2023. The change in Group struc-
Machinery Trading Co., Ltd. (Changzhou, China) was incorporated ture had an insignificant impact on the consolidated semi-annual
as a subsidiary of Rieter China Textile Instruments Co. Ltd. financial statements for 2023.
(Changzhou, China).
8 FINANCIAL INSTRUMENTS
The following table shows the financial instruments that are measured at fair value, grouped according to the categories defined in the
accounting policies:
There were no transfers among the categories and the valuation fair value of these instruments is determined with the help of val-
techniques have been applied consistently. Financial instruments uation techniques that use foreign exchange rates and interest
measured at level 2 consist mainly of derivatives held for hedging rates as observable input parameters.
purposes entered into with reputable financial institutions. The
14 Rieter Group . Semi-Annual Report 2024 . Notes to the consolidated semi-annual financial statements
On June 30, 2024, financial debt measured at amortized cost Swiss Exchange and are included in the balance sheet line items
includes two fixed-rate bonds; one with a carrying amount of CHF “Current financial debt” and “Non-current financial debt”.
75.0 million (December 31, 2023: CHF 74.9 million) and a fair
value of CHF 74.9 million (December 31, 2023: CHF 74.5 million) The carrying amounts of the financial instruments measured at
and a second with a carrying amount of CHF 99.7 million (Decem- amortized cost approximate fair values due to their mainly short-
ber 31, 2023: 99.7) and a fair value of CHF 96.5 million (December term nature (except for non-current lease liabilities).
31, 2023: CHF 98.4 million). Both bonds are listed on the SIX
The Semi-Annual Report 2024 was approved for publication by the carrying amounts of the Group’s assets or liabilities, or which
the Board of Directors on July 17, 2024. No events have occurred would require disclosure.
up to July 17, 2024, which would necessitate adjustments to
All statements in this report which do not refer to historical facts are forecasts which offer no guarantee whatsoever with respect to
future performance; they embody risks and uncertainties which include – but are not confined to – future global economic conditions,
exchange rates, legal provisions, market conditions, activities by competitors, and other factors which are outside the company’s con-
trol.
Rieter Group . Semi-Annual Report 2024 . Financial Calendar 15
FINANCIAL CALENDAR
www.rieter.com