Zehnder Group achieved solid sales and EBIT again in the first half of 2023; adjusted outlook for the 2023 financial year

Six-month report 2023:

• Sales of EUR 407.0 million (+2%)
• Operating result (EBIT) of EUR 37.5 million (+2%)

Outlook 2023 financial year:

• Sales expected between EUR 780 million and EUR 820 million
  (previously: further sales growth for 2023)
• EBIT margin of around 8% of sales expected
  (previously: EBIT margin comparable to that of 2022)

Graenichen (CH), 20 July 2023: The Zehnder Group (SIX: ZEHN), a leading international provider of complete solutions for a comfortable, energy-efficient and healthy indoor climate, increased its sales by 2% to EUR 407.0 million in the first half of 2023 (preliminary). The Group's operating result (EBIT) rose by 2% to EUR 37.5 million (preliminary). The corresponding EBIT margin of 9.2% is at the level of the previous year. An improvement in the supply chain situation in the ventilation segment together with targeted cost savings and structural adjustments could counterbalance the volume decline in radiators. The Group’s net income amounted to EUR 27.7 million (previous year: EUR 29.4 million) in the first half of 2023.

Better supply capability drives ventilation sales; significant volume decline for radiators

The better component availability led to improved delivery capability, particularly in residential ventilation. Consequently, production volumes of ventilation units were increased, and the backlog of orders accumulated due to a lack of components was largely reduced. At the same time, higher interest rates and the persistently high level of inflation over recent months have led to a drop in planning permits granted for new buildings in numerous European countries. Weakening purchasing power due to increased financing costs and persistently high levels of inflation have also led to a decline in demand for radiators. This development had a negative impact on the renovation business and led to a significant overall decline in volumes in the radiator segment.

Outlook for the full year 2023

Due to the current economic situation, the Zehnder Group expects that high levels of inflation and rising interest rates will continue to affect the number of planning permits granted for new buildings and renovation projects for customers. It is currently difficult to gauge when the new building and renovation business will recover. Against this background, the Zehnder Group continues to expect a challenging market development and currently does not expect any significant sales growth in the second half of 2023. Consequently, Zehnder Group expects sales for the full year 2023 between EUR 780 million and
EUR 820 million (previous outlook 2023: further sales growth for 2023), and an EBIT margin of around 8% of sales (previous outlook 2023: EBIT margin comparable to that of 2022).

In the long term, growth prospects remain positive, particularly in the ventilation segment. New building regulations for better insulated buildings, the increasing demand for energy-saving and efficient climate control solutions, and the desire for healthy indoor air quality, together with the still low penetration rates in various countries, are fueling growth – especially in the ventilation segment. Therefore, the medium-term targets of average annual sales growth of 5% and an EBIT margin of 9% to 11% remain unchanged.

The complete six-month report 2023 will be published on 28 July 2023 and will be found on our website under the following link: 
www.zehndergroup.com/de/investor-relations/berichte-und-praesentationen

Next dates to note

Contact

René Grieder
Member of the Group Executive Committee, CFO
Zehnder Group AG, 5722 Gränichen (Switzerland)
T +41 62 855 15 21, rene.grieder@zehndergroup.com

Alexander Kamb
Senior Manager Investor Relations & Communications
Zehnder Group AG, 5722 Gränichen (CH)
T +41 62 855 15 36, alexander.kamb@zehndergroup.com

This media release is published in German and English. The German version is binding. For further information about the Zehnder Group, please visit www.zehndergroup.com.

Company profile

Zehnder Group provides worldwide leading solutions for a comfortable, energy-efficient and healthy indoor climate. The products and services of the Group include heating, cooling, indoor ventilation and air cleaning. The Group develops and manufactures its products at its own factories in Europe, China and North America. In the financial year of 2022, the Zehnder Group had about 4'000 employees and achieved sales of EUR 812 million. The company is listed on the SIX Swiss Exchange (symbol: ZEHN, number: 27 653 461). The unlisted registered shares B are held directly or indirectly by the Zehnder family and persons closely associated with them.