Press releases

06.12.2023 Update on current trading and mid-term guidance as part of Arbonia’s Capital Markets Day

Update on current trading and mid-term guidance as part of Arbonia’s Capital Markets Day

Arbon, 6 December 2023 – At the Capital Markets Day 2023 taking place today in Prüm (D), Arbonia shows the new door plant of the future. The company also provides an update on current trading and confirms the mid-term guidance for 2026, despite the current challenging market environment in its core markets, which is expected to continue in 2024. 

Contact
Fabienne Zürcher
Head Corporate Communications & Investor Relations
T +41 71 447 45 54

fabienne.zuercher@arbonia.com

22.08.2023 Arbonia First semester results 2023 - EBITDA margin at previous year's level despite difficult environment

Arbonia First semester results 2023 - EBITDA margin at previous year's level despite difficult environment

  • Revenue decline of 9.6% (organic 8.1%) to CHF 570.4 million from CHF 630.9 million in the previous year
  • EBITDA: CHF 44.9 million from CHF 52.4 million in the previous year
  • EBITDA margin: 7.9% (previous year: 8.3%)
  • EBIT: CHF 6.2 million from CHF 17.8 million in the previous year
  • Group result after taxes: CHF 2.0 million from CHF 11.7 million in the previous year
  • Significant positive free cash flow expected for 2023
  • Confirmation of mid-term targets for 2026 due to great demand for housing as well as energy upgrading of existing housing to reduce required CO2 emission

Arbon, 22 August 2023 – Arbonia’s core markets, especially Germany, Benelux, and Eastern Europe, suffered a considerable slump in building permits due to the high construction costs and interest rate hikes. At Arbonia Group, this decrease in construction activity led to sharply lower volumes for the products steel panel radiators, standard doors and shower enclosures. This is against the backdrop of a historically high demand for housing and the necessary energetic conversion of existing building stock to achieve the required reduction in CO2 emissions.

The first half of 2023 was characterised by great challenges, which not only affected the general economy but the building sector in particular and thus Arbonia. The first half of 2023, for example, was impacted by a pronounced reluctance in the ordering behaviour of wholesalers and the specialist retailers, who continued to reduce inventories or did not fill them up again with large orders but placed smaller shorter-term orders instead. New construction was burdened by the reluctance of builders, who started fewer construction projects or postponed them due to an uncertain regulatory environment and significantly increasing construction and financing costs at the same time. In renovation, increasing rents due to increasing interest rates and higher ancillary rental costs (energy) had a noticeable negative impact. This caused people to remain in their current homes for fear of further increasing rental costs and due to the low number of vacant flats, which led to fewer renovations being done. In addition, housing companies delayed planned renovations. On the other hand, the demand for affordable housing as well as the necessity of upgrading the energy efficiency of existing building stock remains high. This had a positive effect on Arbonia’s growth products but could not fully compensate for the negative volume effects from the general reluctance in the construction sector.

Arbonia’s revenue decreased by 9.6% in the first half of 2023 compared to the same period in the previous year, from CHF 630.9 million to CHF 570.4 million. Adjusted for currency and acquisition effects (organic), revenue decreased by 8.1%. EBITDA came to CHF 44.9 million (previous year: CHF 52.4 million), which means a reduction of 14.4%. The EBITDA margin decreased from 8.3% to 7.9%. Without one-time effects, EBITDA decreased by 13.6%, from CHF 52.4 million to CHF 45.3 million, which corresponds to a decrease in the EBITDA margin from 8.3% to 7.9%. EBIT came to CHF 6.2 million (previous year: CHF 17.8 million), which corresponds to a decline of 65.2%. Without one-time effects, a decrease of 63.0% resulted, from CHF 17.8 million in the previous year to CHF 6.6 million. The group result amounted to CHF –2.0 million compared to CHF 11.7 million in the previous year or without one-time effects to CHF –1.7 million (previous year: CHF 11.7 million). The negative net profit at the half year is the result of the lower operating profit, higher depreciation and amortisation as well as the higher financial result due to higher interest expenses and foreign exchange losses.

Cash flow from operating activities amounted to CHF 12.0 million in the reporting period (CHF –68.6 million in the previous year). This resulted in a free cash flow of CHF –27.8 million (CHF –142.9 million in the previous year). As of 30 June 2023, net debt amounted to CHF 241.4 million.

Shareholders' equity decreased to CHF 967.9 million (previous year CHF 1016.1 million). Consequently, the equity ratio also decreased from 66.1% in the previous year to a still solid 61.6%.

Contact
Fabienne Zürcher
Head Corporate Communications & Investor Relations
T +41 71 447 45 54

fabienne.zuercher@arbonia.com

20.07.2023 Arbonia further improves competitiveness by consolidating design radiator production

Arbonia further improves competitiveness by consolidating design radiator production

Arbon, 20 July 2023 – The Heating Ventilation and Air Conditioning (HVAC) Division of Arbonia is further improving its competitiveness with the planned relocation of its design radiator manufacturing volume. As part of its strategy of being a best-in-class radiator supplier, the planned relocation of manufacturing and painting from Dilsen (BE) to the competence centre in Stříbro (CZ) will increase capacity utilisation and productivity as well as further centralise know-how. Arbonia expects one-off costs of around CHF 10 million to be incurred in the second half of 2023 due to the closure and relocation of production. In return, Arbonia expects annual savings of around CHF 4 million from the second half of 2024.

Contact
Fabienne Zürcher
Head Corporate Communications & Investor Relations
T +41 71 447 45 54

fabienne.zuercher@arbonia.com

20.07.2023 Trading update – Slump in building permits due to construction cost increases and interest rate hikes

Trading update – Slump in building permits due to construction cost increases and interest rate hikes

Arbon, 20 July 2023

  • Decline in construction activity in Arbonia’s core markets led to sharply lower volumes for radiators, interior doors, and shower enclosures
  • Suspension of guidance due to unpredictability of volumes in the second half of 2023
  • The volume decreases in the first half of 2023, in conjunction with negative currency effects (-3.6%), led to an overall decrease in revenue of -10% compared to the same period last year to approximately CHF 570 million (HVAC: CHF 303 million; Doors: CHF 266 million)
  • HVAC Division on EBITDA level above previous year with increased margin from 8.0% to 9.4%
  • Doors Division on EBITDA level below previous year with decreased margin from 10.7% to 8.0% – in particular a one-time additional burden of energy costs had a negative impact here
  • Significant positive free cash flow expected for 2023
  • Closure of production plant and staff reductions of up to 600 employees until June 2024 will lead to a one-time charge of up to CHF 15 million in the 2023 financial year and consequently to annual net savings of CHF 10 – 12 million
  • Confirmation of mid-term targets for 2026 due to great demand for housing as well as energy upgrading of existing housing to reduce required CO2 emissions

Contact
Fabienne Zürcher
Head Corporate Communications & Investor Relations
T +41 71 447 45 54

fabienne.zuercher@arbonia.com

21.04.2023 General Meeting of Arbonia AG approves all motions

General Meeting of Arbonia AG approves all motions

Arbon, 21 April 2023 – The shareholders of Arbonia AG approved all of the motions proposed by the Board of Directors at today's General Meeting. Among them was a dividend payment in the amount of CHF 0.30 per share and the confirmation of the re-election of those members of the Board of Directors who had chosen to stand. All amendments to the Articles of Association required by the new company law were also approved. 

Contact
Fabienne Zürcher
Head Corporate Communications & Investor Relations
T +41 71 447 45 54

fabienne.zuercher@arbonia.com

28.02.2023 Arbonia annual results 2022 and outlook 2023

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.

Contact
Fabienne Zürcher
Head Corporate Communications & Investor Relations
T +41 71 447 45 54

fabienne.zuercher@arbonia.com

12.01.2023 Arbonia with challenging second half-year of 2022

Arbonia with challenging second half-year of 2022

Arbon, 12 January 2023 – The financial year 2022 was challenging due to increased material and logistics costs, material shortages, a dramatic rise in energy costs, increased interest rates, and the Swiss franc significantly appreciating. In general, this situation did not ease in the second half-year of 2022 due to factors such as energy costs continuing to rise. 

The situation was made worse by a rapid destocking among all major customers in the fourth quarter of 2022. This significant and unexpected volume reduction, particularly affecting radiators, shower enclosures, and to some extent doors, resulted in the margin being negatively affected as a contrast to the strong performance that is normally seen in the construction industry during the second half-year. However, the growth businesses strategically built up in recent years (for heat pumps, ventilation units, underfloor heating and energy storage) performed in a positive manner, demonstrating high double digit volume growth in. 

Despite achieving organic growth of slightly above 5% resulting in revenues of around CHF 1.2 billion, the EBITDA margin without one-time effects will be around 9.5%.*

Contact
Fabienne Zürcher
Head Corporate Communications & Investor Relations
T +41 71 447 45 54

fabienne.zuercher@arbonia.com

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Fabienne Zürcher

Head of Corporate Communications & Investor Relations

Amriswilerstrasse 50

9320 Arbon

Switzerland

+41 71 447 45 54

+41 79 451 01 38

fabienne.zuercher@arbonia.com