Solid result in difficult market environment - Seite 2

Forbo overcame the challenges faced in an extremely demanding environment, and increased profitability slightly in comparison to the strong first half of 2022.  

Major impact of currency effects on net sales and earnings
The conversion of local results into the corporate currency exposed Forbo to considerable currency-related negative impacts in the areas of net sales (CHF 37 million) and EBIT (CHF 5 million). Both divisions were affected to a similar degree. The Japanese yen, the Chinese renminbi, the Swedish krona, and the pound sterling all contributed, along with the euro and the US dollar. The euro was the main driver for the majority of the impact.

Net sales in local currencies down slightly in comparison with strong first half of 2022
With net sales of CHF 615.2 million in the first half of 2023 (prior-year period: CHF 667.3 million), Forbo registered a slight decrease in local currencies of 2.2% (–7.8% in the corporate currency). Compared with a strong first half year in 2022, the net sales development in local currencies for the regions were as follows: Asia/Pacific +3.1%, Europe –2.0%, and the Americas –6.3%. It was not possible to fully offset the clearly discernible downturn in demand and volumes through price adjustments.

Flooring Systems reported a decline in net sales of 3.4% in local currencies (–8.8% in the corporate currency). Demand continues to be affected by the shift away from renovation projects to energy-saving projects in response to the energy crisis. In addition, the construction industry remains generally sluggish due to the effects of inflation on construction cost and higher interest rates.

Movement Systems achieved net sales at the previous year's level in local currencies (+0.3%, –5.6% in the corporate currency). Following some years of growth, demand in the logistics segment is still at a reduced level, as the requirement for new e-commerce and parcel centers is not as strong as during the time of  the pandemic. Processing belts for the food industry, for industrial production segments, and for processing raw materials were increasingly in demand. On the other hand, there was no sign yet of a discerning economic recovery in China, a key market for Movement Systems.