Restrained demand in a challenging market environment
In the first quarter of 2024, the Bossard Group recorded a decline in sales of 15.5 percent to CHF 257.4 million (prior year: CHF 304.5 million) in a continuously challenging market environment and as a result of the strong Swiss franc. The decrease in local currency was 11.2 percent. In a quarter-on-quarter comparison, the record high comparative basis of the previous year is noticeable.
As expected, demand in Europe continued to decrease, as it has since the second quarter of 2023. Sales declined by 12.2 percent to CHF 150.0 million (in local currency: -9.3 percent). Despite the challenging market environment, the first quarter saw continuing investments in future growth, additional efficiency and productivity improvements, including the successful rollout of the new ERP system in France.
Sales in America declined by 22.9 percent to CHF 65.8 million (in local currency: -18.4 percent). Since the record sales in the first quarter of the prior year, a normalization of demand has been observed.
With a decline in sales by 13.9 percent (in local currency: -5.2 percent) to CHF 41.6 million, weaker demand persisted in Asia as well. The appreciation of the Swiss franc was particularly noticeable in this market region. The continued two-digit growth rates in India marked a gratifying exception, as Bossard benefited from nearshoring trends, a dynamic start-up landscape, and the above-average growth in the focus industries of electromobility and electronics.
Outlook
Based on current market observations, Bossard expects the economy to remain restrained in the first half of 2024. However, even this market environment also offers growth opportunities. Thus, the acquisition of new customers as well as the project pipeline make Bossard optimistic for the future. In addition, the continued trend towards nearshoring and the digitalization of processes with a focus on efficiency and productivity enhancements further strengthens the demand for Smart Factory services in the current environment. The Group continues to stand by the communicated medium-term financial goals and the consistent implementation of the Strategy 200.
