Zehnder Group records a decline in sales in an increasingly challenging market environment

Zehnder Group AG / Key word(s): Development of Sales Zehnder Group records a decline in sales in an increasingly challenging market environment 19-Jan-2024 / 06:59 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. Group sales decreased by 6% to EUR 762.1 million Acquisitions and price increases had a positive effect on revenue; declining volumes had a growing negative impact on sales in the second half of the year The full annual financial statements for 2023 will be published on 28 February 2024

Graenichen (CH), 19 January 2024: Zehnder Group (SIX: ZEHN), a leading international provider of complete solutions for a comfortable, energy-efficient and healthy indoor climate, generated sales of EUR 762.1 million (unaudited; previous year EUR 812.5 million) in the 2023 financial year, and therefore 6% (organically -7%) less than in the previous year. Acquisitions made a positive contribution of 2% to sales, while negative currency effects weighed on the consolidated financial statements in euros by 1%. The supply chain situation improved in the first half of 2023. The resulting reduction in order backlog in the ventilation segment compensated for the decline in radiator volumes. In the second half of the year, the ventilation segment reported a decrease in sales as well.

Slight decline in sales in the ventilation segment

Sales in the ventilation segment amounted to EUR 441.1 million in 2023, which corresponds to a decline of 2% (organically -3%). The acquisitions of Airia in Canada and Filtech in the Netherlands made a positive contribution of 3%, while negative currency effects of 2% weighed on sales. The ventilation segment accounted for around 58% of the Group's total sales, an increase of 3 percentage points compared to the previous year. The two product lines residential ventilation and clean air solutions developed positively – the former due to the aforementioned acquisitions and reduction of order backlog from 2022. In contrast, the heat exchanger business declined.