The 2023 financial year was challenging for the economy in general and the European construction industry in particular. Although raw material prices fell slightly and supply chains eased, the market environment remained difficult given the ongoing geopolitical tensions, a significant decline in volumes, rising interest rates, and strong wage inflation. Nevertheless, most of the Artemis Group's business activities maintained a solid level of profitability and improved their competitive position through consistent price management and a high degree of operational flexibility.
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Business development Artemis Group 2023
- Net sales fell to CHF 3.49 billion (-3.1%). In local currency, net sales increased by +1.4%, while negative currency effects reduced net sales by -6.3%.
- EBIT margin remained at the previous year's level of 6.4%.
- Cash flow from operating activities and free cash flow increased substantially thanks to the improvement in net working capital.
- Net debt decreased further.
- Equity ratio rose to 67.7% (previous year 66.6%).
- At CHF 281.7 million, total investments remained at the previous year's level.
- At the end of 2023, the headcount was 11,311 employees (-0.1%).
Business development Franke Group 2023
- Net sales fell to CHF 2.42 billion (-4.9%). On an organic basis, net sales grew by +1.7%, while negative currency effects reduced net sales by CHF -169.3 million (-6.7%).
- EBIT fell to CHF 193,1 million (-10,6%), while the EBIT margin declined slightly to 8.0% (previous year 8.5%).
- Total investments amounted to CHF 90.3 million (+23.7%).
The demand trends of 2022 continued in the 2023 financial year. The Franke Group divisions contributed to sales growth to varying degrees. Franke Home Solutions, which was one of the winners of the COVID crisis, recorded a decline in demand from the second half of 2022 due to a change in consumer behaviour and the reduction of inventories in the distribution system. The global negative trend continued until 2023 but was then driven more by weak demand from end consumers as a result of high interest rates and inflation in most markets, which led to a decline in sales of -14.4 %. Franke Foodservice Systems recorded a decline in sales of -2.8%. This primarily reflects the development in the Americas region, where demand in the high-volume but low-margin convenience store segment decreased significantly. However, this was partially offset by strong growth in the equipment for quick service restaurants. The EMEA and APAC regions also recorded a slight decline in sales. Franke Coffee Systems achieved sales growth of 16.1%, which was primarily due to the extensive project business in China.
Franke Home Solutions recorded a decline in EBIT due to the erosion in sales. However, it was able to maintain its EBIT margin at almost the same level as the previous year thanks to strict cost management and a stable sales margin. Franke Foodservice Systems recorded further operational improvements in the Americas region in connection with increased demand in the higher-margin business, which led to a significant rise in EBIT, while the EMEA and APAC regions achieved solid EBIT results. Franke Coffee Systems also recorded an improvement in results.
The Artemis Group comprises the Franke Group, the Artemis Real Estate Group, the majority-owned Feintool Group, and the Artemis Asset Management Group. In 2023, the Group generated sales of approximately CHF 3.5 billion with about 11,000 employees worldwide. More information is available at artemis-holding.com.
More information:
Franke Group
www.franke.com