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2023 has been a difficult year for Domat/Ems GR’s Ems-Chemie industrial group in many respects. The company has been hurt by the strong franc and several negative reports of harsh austerity measures and excessive management influence.
This situation is also reflected in the numbers. Sales and profits fell in 2023, and distribution to shareholders was also lower.
As the company, led by Senior Vice President National Assemblywoman Magdalena Martullo-Blocher (54), announced on Friday, sales fell by 10.4 percent to 2.19 billion francs. Adjusted for exchange rate effects, sales would have fallen by only 4.6 percent.
There aren’t enough new jobs
The company achieves much of this with polymers used primarily to make car parts as well as ski boots and gaming consoles. The automotive industry accounts for approximately 60 percent of Ems sales.
Ems-Chemie announced that the chip shortage in the automobile industry has now been resolved, but customers are now reducing their stocks due to falling orders. Successfully implemented new business could not compensate for the general reluctance of consumers and companies and the impact of the strong franc.
As a result, operating profit at the EBIT level decreased by 19.4 percent to 493 million francs, due to economic and foreign exchange-related reasons. This means that once again less sales remain as operating profit than in the previous year, with the corresponding margin falling from 25.0 to 22.5 percent.
Net profit of 461 million francs
The result was a net profit of 461 million francs, a decrease of 13.8 percent. As a result, the dividend falls to a total of 16 francs per share. Last year it was 20 francs per share.
Ems expects net sales for the current year to be at the level of the previous year and the result of operations (EBIT) to be slightly higher than in the previous year. However, the economic environment is likely to remain challenging. The company thinks that the first half of the year will be quite stagnant, especially due to the consumer mood in Europe. (SDA/rae)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
