Cicor Group Reports Significant Growth Despite Challenges

Cicor Group has reported substantial growth in the first half of 2024, positioning itself among the top tier of European electronics manufacturers. Net sales increased by 16.1% to CHF 231.3 million compared to CHF 199.2 million in the first half of 2023. The operating margin remained steady at 10.7%, with EBITDA rising by 15.9% to CHF 24.7 million. Net profit saw a disproportionate increase, leading to earnings per share of CHF 2.69, up from CHF 1.74 in the same period last year.

Newly acquired companies contributed 22.1% to the sales growth. However, the Group faced a 4.4% decline in organic sales, attributed to weak industrial electronics demand and a delay in a major aerospace and defense project. Despite this, growth in the medical technology and transport sectors partially offset the decline.

The order backlog remains robust, amounting to around one year's worth of sales. New orders totaled CHF 201.1 million, despite a challenging economic environment. The integration of recent acquisitions, including STS Defence and TT Electronics IoT Solutions, has bolstered Cicor’s market position, particularly in the aerospace and defense sectors.

Cicor also reported a significant increase in free cash flow before acquisitions, reaching CHF 21.1 million, a fourfold rise compared to the previous year. Despite investing CHF 51.0 million in acquisitions, Cicor's balance sheet remains solid with an equity ratio of 31.4%.

Looking ahead, Cicor anticipates annual sales for 2024 to be between CHF 470 and 510 million, with EBITDA expected to be between CHF 50 and 60 million. The Group aims to continue its strategic focus on high-end electronics in key sectors and achieve above-average growth rates.