Arbonia annual results 2022 and outlook 2023
Arbon, 28 February 2023 – The reporting year of Arbonia was characterised by considerable upheavals in both divisions, which increased significantly in the course of the year:
The 1st half of 2022 was still characterised by stable sales volumes and benefited from the previous year’s high order volumes, among other things. This was despite the fact that a considerable pressure on the margins was already noticeable at that time due to the inflation trend that had set in for all raw materials and energy. The price increases implemented with customers in the 2nd half of 2022 caused margins to improve significantly. As a result, it was possible to reduce the material ratio from 51.4% to 49.4%.
However, during the 2nd half of 2022, particularly in the 4th quarter, there was a proper slump in orders from wholesalers for stock items such as radiators and standard doors. Economic uncertainties led to significant destocking and a change in ordering behaviour among customers towards short-term ordering. The energy crisis, which persisted throughout the financial year, also burdened the 2nd half of the reporting year with an additional CHF 5.1 million compared to the previous year.
Furthermore, the geopolitical situation resulting from the war in Ukraine impacted the operating activities of both divisions due to the lost volumes and revenues in the affected markets in Eastern Europe.
Arbonia was able to increase revenues in the financial year 2022 by 1.3% to CHF 1'202.1 million; growth was 5.5% without the influence of currency and acquisition effects (organic). EBITDA without one-time effects1 fell from CHF 134.3 million to CHF 112.4 million; with one-time effects, EBITDA reached 108.3 million compared to CHF 124.7 million in the previous year. This corresponds to a reduction in the EBITDA margin (without one-time effects) from 11.3% in the previous year to 9.4%; with one-time effects, the EBITDA margin fell from 10.5% to 9.0%. As a result, EBIT without one-time effects also fell from CHF 67.0 million to CHF 41.4 million; with one-time effects, EBIT fell from CHF 53.3 million to CHF 37.0 million. This corresponds to a decrease in the EBIT margin without one-time effects from 5.6% to 3.4%; with one-time effects, the EBIT margin fell from 4.5% to 3.1%. The Group result with one-time effects (from continuing operations) fell as a result from CHF 27.5 million in the previous year to CHF 20.7 million. Without one-time effects, the Group result fell from CHF 41.1 million to CHF 23.9 million.
1 Explanations, definitions, and reconciliations for the Alternative Performance Measures are found in the Annual Report 2022 on pages 227 – 231.