Sales of Swiss Baichao Q3 increased by 20%, and the contraction of orders in the

On October 15, Bystronic released its third quarter performance report as of September 30, 2022.
According to the latest financial report, the sales of Swiss 100 Advance in the third quarter increased by 8.5% year on year, reaching 712.4 million Swiss francs.
In the third quarter of 2022, the group's revenue accelerated and sales increased by 20% to 259.2 million Swiss francs.

(Image source: Bystronic)

From the perspective of market performance in different geographical regions, the growth of Swiss Baichao in the Americas and the Asia Pacific region in this quarter is considerable. Europe and Central Africa (EMEA) developed steadily, while business in China continued to decline in the third quarter.

Switzerland Baichao continued to achieve strong growth in its service business, with sales growth of 11.5% in the first nine months of this year (16.8% at constant exchange rate).

On the whole, the order volume of Swiss 100 supermarkets in the first nine months of 2022 was 781.2 million Swiss francs, down 9.6% year on year. The decline in orders in the third quarter reflects the significant impact of the catch up effects of the COVID-19 epidemic in the same period last year. In the medium term, Baichao can provide customers with shorter delivery time.

By region, in the Asia Pacific region, the number of orders has basically remained the same as that of the same period last year, and the contraction of orders in the Chinese market has slowed down. In the Middle East, Africa and the Americas, the growth rate of total orders slowed down.

Highlights of 2022 Semi annual Report

In the first half of 2022, despite many unfavorable factors such as supply chain bottlenecks, limited transportation capacity and the COVID-19 in the Chinese market, with its innovative product and service portfolio, Swiss Premier League still achieved a stable order growth matching the strong level of the previous year - the order volume increased by 0.5%, and the total order volume was 536.1 million Swiss francs. In the Americas and the Asia Pacific region, the order volume of the Swiss 100 supermarkets has achieved double-digit growth, while the demand in Europe, Central Africa is basically the same as last year. In contrast, orders in the Chinese market declined significantly.

In terms of sales, in the first half of 2022, the sales of Baichao in Switzerland increased by 2.8% to 453.2 million Swiss francs. Sales in Europe, Central Africa, the Americas and the Asia Pacific region increased, while sales in China and the entry-level market declined. In the first half of the year, the finished product inventory of Baichao in Switzerland increased by 49 million Swiss francs.

(Image source: Bystronic)

In the first half of the year, due to its new modular service portfolio, Swiss Baichao continued to sell more than 95% of its new machines in the first two core areas and combined them with outsourcing contracts. In the field of software and intelligent factories, Swiss Baichao has further tested its selected customers, and plans to launch the latest software suite at EuroBLECH in October.

In the first half of the year, Baichao in Switzerland raised prices several times to absorb the rising input costs. Due to the large backlog of orders, these factors are expected to have a positive impact on it from 2023. However, the challenges in the procurement market and transportation capacity are still not optimistic, which mainly include the challenges in procurement, longer transportation and installation cycles, and correspondingly higher production costs, which can only be passed on to customers through time delays - especially considering the large backlog of orders.

Q4 performance outlook

Due to the shortage of parts in the delivery system, the finished product inventory of Baichao in Switzerland has stabilized at about 50 million Swiss francs in this quarter. Therefore, it is estimated that 100 million Swiss francs of target sales and corresponding profit contribution have not yet been achieved. In addition, although the supply of spare parts improved slightly in the third quarter, the situation is still full of challenges.

For the whole year of 2022, the Group expects the sales volume to be between 950 million and 1 billion Swiss francs, and the profit in the second half of the year will be significantly higher than that in the first half of 2022.

By 2025, the goal of Swiss Baichao is to increase organic sales by more than 5% every year, the profit margin before interest and tax will exceed 12%, and the return on operating assets (RONOA) will exceed 25%.

About Swiss Bestronic

Switzerland Bystronic is a leading global technology company in the field of sheet metal processing. Its business focus is on the automation of complete materials and data flow in the laser cutting and bending process chain. Bystronic's operation headquarters are located in Niederonz, Switzerland, and other development and production bases are located in Sulgen, Germany, Italy (Cazzago San Martino and San Giuliano Milanese), China (Tianjin and Shenzhen), and the United States (Hoffman Estates). Bystronic has its own sales and service companies in more than 30 countries and agents in many other countries.

Source: OFweek