Rieter Investor Update 2024 (En) Mittwoch, 23. Oktober 2024 - 06:37

October 23, 2024 / 2024

• Order intake of CHF 226.4 million in the third quarter, CHF 629.8 million after nine months
• Sales of CHF 163.3 million in the third quarter, CHF 584.3 million after nine months
• Order backlog of around CHF 690 million as of September 30, 2024
• Outlook for the full year 2024

The market environment in the reporting period was characterized by restrained investment in new machinery in almost all regions except China. Demand for consumables, wear & tear and spare parts weakened slightly due to the low spinning mill capacity utilization. The noticeable downturn in consumer sentiment had a further dampening effect throughout the entire textile value chain.

Despite this challenging market environment, the Rieter Group recorded a gratifying order intake of CHF 629.8 million in the first nine months of 2024 (2023: CHF 452.2 million) in all market regions. In the third quarter of 2024, orders increased by 78% year-on-year to CHF 226.4 million (2023: CHF 127.2 million). This means that the order intake has increased for the third quarter in a row.

Rieter's cumulative sales in the first nine months of 2024 amounted to CHF 584.3 million (2023: CHF 1 092.9 million), a decrease of 47% compared to the prior-year period. Sales in the third quarter of 2024 were CHF 163.3 million (Q3 2023: CHF 334.7 million).

The Business Group Machines & Systems generated total sales of CHF 264.1 million in the first nine months of 2024 (-65% compared to the same period of the previous year). The Business Group Components posted sales of CHF 184.5 million, 11% lower than in the corresponding period of the previous year, while the Business Group After Sales recorded a slight decline of -1% to CHF 135.7 million in the first nine months of 2024.

As of September 30, 2024, Rieter has an order backlog of around CHF 690 million (September 30, 2023: CHF 900 million).

The transfer of resources and responsibilities to India and China to enable the key markets to respond in a more agile way to customer needs and cycles in the machinery business is on track. The planned cost savings were achieved. Rieter continues to consistently implement the action plan to increase profitability.

Due to the overall geopolitical situation and the general deterioration in consumer sentiment, the market recovery is proving to be more restrained than previously forecast. The first signs of a recovery in financial year 2024 have emerged in the key markets of China and India.

For the full year 2024, Rieter now anticipates sales in the range of CHF 900 million and an EBIT margin remaining at 2% to 4%.

• Capital Market Day – October 28, 2024
• Publication of sales 2024 – January 29, 2025
• Deadline for proposals regarding the agenda of the Annual General Meeting – February 28, 2025
• Results press conference 2025 – March 13, 2025
• Annual General Meeting 2025 – April 24, 2025
• Semi-Annual Report 2025 – July 18, 2025
• Investor Update 2025 – October 22, 2025

About Rieter
Rieter is the world’s leading supplier of systems for manufacturing yarn from staple fibers in spinning mills. Based in Winterthur (Switzerland), the company develops and manufactures machinery, systems and components used to convert natural and manmade fibers and their blends into yarns in the most cost-efficient manner. Cutting-edge spinning technology from Rieter contributes to sustainability in the textile value chain by minimizing the use of resources. Rieter has been in business for more than 225 years, has 18 production locations in ten countries and employs a global workforce of around 4 800, about 16% of whom are based in Switzerland. Rieter is listed on the SIX Swiss Exchange under ticker symbol RIEN. www.rieter.com

Disclaimer
All statements in this report which do not refer to historical facts are forecasts which offer no guarantee whatsoever with respect to future performance; they embody risks and uncertainties which include – but are not confined to – future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors which are outside the company’s control. This text is a translation of the original German text.