Rieter Closes the Financial Year 2024 with a Solid Operating Result
Ad hoc announcement pursuant to Art. 53 LR
- Order intake of CHF 725.5 million
- Sales of CHF 859.1 million
- Order backlog of around CHF 530 million at December 31, 2024
- EBIT of CHF 28.0 million (EBIT margin of 3.3%)
- Proposed dividend of CHF 2.00 per share
- Outlook 2025
Order intake was significantly higher than in the previous year at CHF 725.5 million (2023: CHF 541.8 million), representing an increase of 34%. This was the fourth consecutive quarter of year-on-year growth. As expected, the Rieter Group closed financial year 2024 with lower sales of CHF 859.1 million (2023: CHF 1 418.6 million) and thus remained 39% below the prior year. Despite significantly lower sales, an operating result (EBIT) of CHF 28.0 million (2023: CHF 104.8 million) and thus a solid EBIT margin of 3.3% (2023: 7.4%) was achieved.
Order intake
Order intake in 2024 was 34% higher than in the previous year at CHF 725.5 million (2023: CHF 541.8 million). Rieter thus succeeded in strengthening its competitive position in a challenging market environment. An initial market recovery was visible compared with the previous year.
Sales by division
The Machines & Systems Division posted sales of CHF 424.9 million, a decrease of 56% compared with the previous year (2023: CHF 965.0 million). In the Components Division, sales declined to CHF 247.6 million, down 7% from the same period of the previous year (2023: CHF 266.2 million). The After Sales Division reported sales of CHF 186.6 million, comparable to the previous year (2023: CHF 187.4 million).
Order backlog
At the end of 2024, the company had an order backlog of about CHF 530 million (December 31, 2023: CHF 650 million).
EBIT, net profit and free cash flow
Profit at the EBIT level in the year under review was CHF 28.0 million (2023: CHF 104.8 million), which represents an EBIT margin of 3.3% (2023: 7.4%). Despite significantly lower sales, a solid EBIT margin was achieved. This is mainly due to the consistent implementation of the measures set out in the “Next Level” performance program.
Rieter closed the 2024 financial year with a net profit of CHF 10.4 million (2023: CHF 74.0 million).
Free cash flow amounted to CHF 14.1 million (2023: CHF 118.7 million). Net debt increased due to new lease liabilities in connection with the Campus in Winterthur to CHF 230.3 million (2023: CHF 191.2 million).
The equity ratio as of December 31, 2024, rose to 33.7%, mainly due to positive currency effects and lower net working capital (previous year’s reporting date 28.8%).
Dividend
The Board of Directors proposes to shareholders the distribution of a dividend of CHF 2.00 per share for 2024 based on the positive free cash flow of CHF 14.1 million and the improved equity ratio of 33.7%. This corresponds to a payout ratio of 85.8%.
Sustainability
Rieter has a clearly defined sustainability strategy that is closely linked to the Group strategy. Through the Science Based Targets initiative, Rieter made a commitment in 2024 to define company-wide emission reduction targets for the year 2040, which are consistent with scientifically-based net-zero goals. In this way, the Rieter Group takes responsibility for its own impact while supporting its customers on their sustainability journey. In the 2024 Annual Report, the report on non-financial matters shows the progress Rieter has made in the areas of environmental, social and corporate governance.
Outlook 2025
Rieter expects a challenging first half in 2025 with regard to sales volume and a stronger second half-year depending on the further market recovery. As a consequence, Rieter anticipates a sales volume at the previous year’s level for the full year 2025. Despite this exceptionally low sales level, Rieter anticipates a positive EBIT margin between 0% to 4% for the year 2025.
Key Figures
| CHF million | 2023 | 2024 | Difference |
|---|---|---|---|
| Rieter | |||
| Order intake | 541.8 | 725.5 | 34% |
| Sales | 1 418.6 | 859.1 | -39% |
| EBIT before restructuring and impairment | 159.41) | 33.8 | -79% |
| - in % of sales | 11.2 | 3.9 | |
| EBIT | 104.81) | 28.0 | -73% |
| - in % of sales | 7.4 | 3.3 | |
| Net profit | 74.0 | 10.4 | -86% |
| - in % of sales | 5.2 | 1.2 | |
| Purchase of property, plant, equipment, and intangible assets | 41.2 | 25.6 | -38% |
| Total assets at December 31 | 1 310.0 | 1 217.8 | -7% |
| Shareholders’ equity before appropriation of retained earnings at December 31 | 376.7 | 410.4 | 9% |
| Number of employees (excl. temporaries) at December 31 | 5 081 | 4 785 | -6% |
| Machines & Systems Division | |||
| Order intake | 159.4 | 364.2 | 128% |
| Sales | 965 | 424.9 | -56% |
| EBIT before restructuring and impairment | 23.5 | -3.8 | -116% |
| EBIT | -3.1 | -8.4 | -171% |
| - in % of sales | -0.3 | -2.0 | |
| Components Division | |||
| Order intake | 229 | 206.6 | -10% |
| Sales | 266.2 | 247.6 | -7% |
| Total segment sales | 383.6 | 303.0 | -21% |
| EBIT before restructuring and impairment | 23.7 | 11.7 | -51% |
| EBIT | 19.2 | 11.3 | -41% |
| - in % of segment sales | 5.0 | 3.7 | |
| After Sales Division | |||
| Order intake | 153.4 | 154.7 | 1% |
| Sales | 187.4 | 186.6 | 0% |
| EBIT before restructuring and impairment | 35.1 | 32.9 | -6% |
| EBIT | 29 | 32.3 | 11% |
| - in % of sales | 15.5 | 17.3 | |
| Rieter Holding Ltd. | |||
| Share capital at December 31 | 23.4 | 23.4 | 0% |
| Net profit | 6.4 | 6.0 | -6% |
| Number of shares, paid-in at December 31 | 4 672 363 | 4 672 363 | 0% |
| Average number of shares outstanding (undiluted) | 4 489 283 | 4 505 347 | 0% |
| Share price (high/low) in CHF | 118/75 | 137/81 | |
| Market capitalization at December 31 | 404.7 | 383.8 | -5% |
| Data per share | |||
| Basic earnings per share in CHF | 16.48 | 2.33 | -86% |
| Equity (Group) in CHF3) | 83.83 | 90.90 | 8% |
| Dividend (Rieter Holding Ltd.) per share in CHF | 3.00 | 2.002) |
1) The comparative period has been adjusted retrospectively as a result of the reclassification of the share in profit of the associated companies from financial result to the operating result.
2) According to the proposal of the Board of Directors.
3) Shareholders’ equity (Group) attributable to shareholders of Rieter Holding Ltd. per share outstanding at December 31.
Alternative Performance Measures (APM)
The definitions of the APM used are contained in the 2024 Annual Report.
Telephone Conference for Media and Investors
The telephone conference for media and investors will take place today, March 13, 2024, at 9.00 am (CET).
Dial-in details
Europe +41 58 310 50 00
UK +44 207 107 06 13
USA +1 631 570 56 13
China +86 400 120 23 19
India +91 446 688 60 46
Webcast
https://event.choruscall.com/mediaframe/webcast.html?webcastid=sTImseLX
Forthcoming Dates
- Annual General Meeting 2025: April 24, 2025
- Semi-Annual Report 2025: July 18, 2025
- Investor Update 2025: October 22, 2025
- Results press conference 2026: February 26, 2026
- Deadline for proposals regarding the agenda of the Annual General Meeting: March 3, 2026
- Annual General Meeting 2026: April 16, 2026
- Semi-Annual Report 2026: July 17, 2026
- Investor Update 2026: October 28, 2026
Relindis Wieser
Head Group Marketing & Communication, Member of the Extended Group Executive Committee8406 Winterthur
Switzerland
Oliver Streuli
Chief Financial Officer8406 Winterthur
Switzerland
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 man-made 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 230 years, has 18 production locations in ten countries and employs a global workforce of around 4 790, 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.