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Investing.com -- Shares of R&S Group climbed 5.3% following the release of their final FY24 full-year results, which confirmed their previously indicated order backlog, net sales, and adjusted EBIT at CHF 278 million, CHF 283 million, and CHF 65 million, respectively.
The company reported a net profit of CHF 41 million, closely aligning with consensus and UBS estimates of CHF 42 million. R&S also proposed a dividend of CHF 0.5 per share, meeting expectations.
The results highlighted challenges including delays in the ramp-up of a new Poland-based plant, which impacted order intake and sales by around CHF 8 million in the second half of the year.
Despite this, the company maintained a solid book-to-bill ratio above 1, with early FY25 showing promising levels between 1.1 and 1.2. Price support normalized in 2024, with no signs of a decrease in the latter half of the year. The company’s sales exposure remained predominantly in Western Europe, with a notable increase in Germany’s contribution to group sales from 4% to 8%.
R&S updated its medium-term guidance, now expecting annual organic sales growth in the range of 10-13%, slightly adjusting its previous estimate of "around 12%," while maintaining its EBIT margin target of "around 20%."
The company’s medium-term free cash flow margin target also remains at 10-12% of net sales. Furthermore, R&S confirmed its stable dividend target of CHF 0.50 per share until 2026. This update comes as consensus expects FY25 sales of CHF 430 million and an adjusted EBIT margin of 19.8%.
UBS analysts commented on the results, stating, "We expect a mildly positive reaction in light of the updated sales guidance and the positive order activity seen in the first couple of months in FY25."
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