SFS achieves good result in challenging 2024 financial year

Ad hoc announcement pursuant to Art. 53 LR – March 7, 2025

The 2024 financial year saw the SFS Group operating in a challenging economic environment characterized by uneven business performance and ongoing inventory destocking in individual end markets. With sales of CHF 3,039.0 million, an EBIT margin of 11.6% and major progress in the area of sustainability, the Group achieved most of its targets. SFS is in a robust and good position to meet the current economic challenges and any opportunities that arise.

The challenging environment of the first half of 2024 improved to a lesser degree than expected in the second half of the year. Global economic momentum fell short of expectations throughout the entire reporting period, primarily due to geopolitical tensions and economic uncertainties that resulted in lower rates of investment on the international stage as well as subdued demand.

SFS generated third-party sales of CHF 3,039.0 million and organic growth of 0.1% in the 2024 financial year. Persistently strong negative currency effects impacted the result by –1.9%. Overall, this results in a sales decline of –1.7% compared to 2023.

Consistent financial performance
Mix effects, lower utilization of production capacities in the Fastening Systems (FS) and Distribution & Logistics (D&L) segments, a cost base that remains elevated due to inflation, and the ongoing appreciation of the Swiss franc all had an impact on profitability. Operating profit (EBIT) came to CHF 350.2 million (PY CHF 358.6 million) and the resulting EBIT margin to 11.6% (PY 11.7%) in the period under review.

Positive development in sustainability
SFS made meaningful progress in the three areas of sustainability – environmental, social and governance – in the year under review. In 2024, the SFS Group reduced its Scope 1 and 2 greenhouse gas emissions by –38.8% and has thus come significantly closer to its target of reducing direct emissions by ≥90% by 2030. The accident rate rose slightly to 4.1 accidents per million working hours. SFS increased the percentage of permanent employees enrolled in dual education and training programs worldwide to 6.3% (PY 5.1%). The Supplier Code of Conduct, which has been mandatory since 2024, was rolled out further and will also be integrated in the Terms and Conditions of Purchase as of 2025.

Development by segment
The challenging environment impacted the results of SFS’s individual business areas to varying degrees. While all divisions of the Engineered Components (EC) segment improved over the previous year, the repercussions were clearly felt in the FS and D&L segments. In the FS segment, an improved market environment started to emerge in the fourth quarter of 2024 with slowly recovering demand.

Changes in the Group Executive Board
Iso Raunjak, previously Head of the D&L Switzerland division, replaced Arthur Blank as CHRO as at January 1, 2025. Arthur Blank has been working at SFS since 1982 and stood at the helm of the Construction division from 2014 to 2023. He took charge of Corporate HR & Communications on an interim basis at the start of 2024. At the end of 2024, he stepped down from the Group Executive Board but will continue to support SFS in the area of talent management. The Board of Directors and Group Executive Board would like to thank Arthur Blank for his loyalty and all his successful efforts over these many years in a variety of management positions.

Looking ahead to the 32^nd Annual General Meeting on April 30, 2025
The next Annual General Meeting of SFS Group AG will be held at Sportzentrum Aegeten in Widnau (Switzerland) on April 30, 2025.

In view of the stable earnings situation, the Board of Directors proposes that a dividend of CHF 2.50 (PY CHF 2.50) per share be distributed. Half of it shall be distributed from retained earnings and half of it from the statutory capital reserve.

Further information will follow together with the invitation, which will be sent out in March 2025.

Outlook for the 2025 financial year
The outlook continues to be shaped by considerable uncertainty. Placing the highest possible focus on customers, pushing further ahead the innovation projects and ensuring efficient and profitable business processes retain top priority in this volatile environment.

For the financial year 2025, SFS expects an EBIT margin around previous year level.

To the Annual Report 2024