Industry
Hoffmann supports SFS: The Rhine Valley technology group can only grow thanks to the takeover of the German tool dealer
Thanks to the takeover of the German Hoffmann Group, the Rheintal-based technology group SFS grew strongly in the first half of 2023. SFS has scaled back its forecasts for the year as a whole.
Training of a polymechanic at the SFS.
Image: Leo Boesinger
The net sales of the SFS Group, which manufactures fastening technology and precision components and trades in building supplies, rose by a good 29 percent to CHF 1.58 billion in the first half of 2023. The growth is based on the acquisition of German Hoffmann, which was integrated by SFS on May 1, 2022, and which contributed CHF 400 million.
The organic growth of SFS is only 0.8 percent or CHF 8.6 million. Currency effects reduced the half-year sales of the group with 13,250 employees by 4.3 percent or CHF 52 million.
Hoffmann also supports profitability
SFS writes that mix effects, inconsistent utilization of production capacities and an increased cost base have influenced business development. The growth was supported by the Distribution & Logistics segment, which more than doubled sales to CHF 771 million thanks to the Hoffmann integration. By contrast, sales at Engineered Components and Fastening Systems declined somewhat.
The same pattern is evident at the profit level. The operating result rose by 16.6 percent to CHF 190 million, although the margin fell from 13.3 to 12.1 percent. Distribution & Logistics quadrupled profits, the other two segments were less profitable. The bottom line is a consolidated profit of 134.5 million francs, 3 million more than in the same period last year.
SFS is a little more cautious
According to the agency AWP, the expectations of the analysts were missed at all levels. On average, they had previously forecast sales of CHF 1.62 billion, an operating result of CHF 200 million and consolidated profit of CHF 153 million.
For the year 2023 as a whole, SFS because also a little more reserved than in spring. Sales of CHF 3.1 to 3.3 billion are now expected, after CHF 3.2 to 3.3 billion previously. The group, headquartered in Heerbrugg, still expects sales growth before consolidation effects within the medium-term target range of 3 to 6 percent.
In addition, SFS expects an operating margin of “around 12 percent” for the entire group. This would be at the lower end of the medium-term planning of 12 to 15 percent. According to SFS, this outlook is based on the assumption that the economic environment will not deteriorate substantially or that geopolitical, energy-related or pandemic-related restrictions will not intensify.
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