Comet Holding AG Projects Growth in 2024 After a Challenging Year

Comet Holding AG has reported a significant downturn in its 2023 financial results, with a 32.2% drop in net sales to CHF 397.5 million, compared to FY22's CHF 586.4 million. The EBITDA margin decreased to 11.3% from 20.3% in the previous year. Additionally, the return on capital employed (ROCE) fell sharply to 6.6% from 26.3%. These challenges were largely attributed to a correction in the semiconductor cycle, which was further exacerbated by slow inventory reductions in the value chain.

Despite these hurdles, Comet anticipates a more favorable outlook for 2024. The company expects semiconductor production equipment spending to surpass previous year levels, leading to a projected net sales range between CHF 440 million and CHF 480 million, and an EBITDA margin between 15.0% to 17.0%. Key markets other than semiconductors, such as automotive, aerospace, and security, remained relatively robust, showcasing Comet's diversified strength.

In response to the downturn, Comet’s Plasma Control Technologies (PCT) division experienced a sharp decline in sales, but efforts to streamline operations and launch the Synertia® RF power delivery platform are showing promise. Meanwhile, the X-Ray Systems (IXS) and X-Ray Modules (IXM) divisions are adapting to the changing market dynamics, focusing on emerging opportunities in electric vehicle battery inspection and semiconductor inspection technologies.

For its shareholders, Comet will propose a dividend of CHF 1.00 per share at the upcoming Annual Shareholder Meeting on April 19, 2024, reflecting a distribution rate of 50.5% of the Group’s net income. This decision comes as Comet prepares for recovery and growth in the semiconductor market, which showed signs of stabilization towards the end of 2023.