Bühler reports good performance in 2024
In 2024, Bühler increased its profitability reaching an EBIT of CHF 227 million and an EBIT margin of 7.6%. Equity ratio improved to 52.8%. The company further strengthened its financial stability with improved cash flow and increased liquidity. In a challenging market environment, although orders declined, turnover remained stable, and Bühler maintained or even increased its market share. The main contributors to the successes of 2024 were Milling Solutions, Bühler’s largest business area, Leybold Optics, and the Customer Service business. “In an increasingly uncertain global economic environment, we took our approach of ‘making things happen’ and continued investing in innovation and training. Our skilled and passionate employees deserve a big thank you, as they were yet again key to our success in a very demanding year,” says Bühler CEO Stefan Scheiber.
In 2024, Bühler Group’s turnover remained stable at CHF 3.0 billion (-0.8%), while order intake stood at CHF 2.8 billion (-9.9%). The impact of foreign exchange rates was significant: in local currencies, turnover increased by 2.5% to CHF 3.1 billion, and order intake stood at CHF 2.9 billion (-7.0%). Thanks to a focus on improving productivity, the Group’s profitability increased for the fourth consecutive year, resulting in an EBIT of CHF 227 million (7.6% of turnover; prior year: 7.2%). Net profit rose to CHF 189 million, corresponding to a margin of 6.3% (prior year: 5.9%). As a result, the company increased its equity ratio for the sixth year running to 52.8%, from 51.1% in 2023. With a special focus on inventory management globally, net working capital was reduced by 15.8% to CHF 554 million. Thanks to this and its improved profitability, the Group increased its operating cash flow to CHF 379 million (prior year: CHF 69 million). Consequently, net liquidity doubled to CHF 503 million. “Our strong financial position makes us a long-term reliable partner to customers, industry partners, and bond holders,” says CFO Mark Macus.
The year of milling
Grains & Food turnover grew by 2.0% to CHF 2,249 million, strongly driven by Milling Solutions, which reported a record year with turnover at an all-time high. Over the past 2 years, Milling Solutions reinforced its global leadership position, adding 30,000 tonnes of daily processing capacity for our customers, which provides staple foods to about 60 million people. Advanced Materials turnover decreased by 8.5% to CHF 712 million, mainly due to normalization of investment activities after the rebounds experienced post-pandemic, combined with significant uncertainties in the global automotive markets. At the same time, the coating and sputtering technologies of Leybold Optics generated strong results in their global markets.
Strong Customer Service contributes to customer success
The Customer Service business, a key differentiator and enabler for Bühler’s customers, experienced strong turnover growth of 9.4% to CHF 1,057 million. This represents a 35.4% share of Group turnover (prior year: 32.1%). In 2024, Bühler enhanced its customer service portfolio, helping its customers grow their businesses while improving the efficiency of their installed assets, reducing their footprint both in terms of operational costs and emissions. Modernization projects played an important role for customers. Strong growth was also noticeable in long-term service agreements, which grew to more than 4,000. These agreements include bundles of services such as on-site inspections, preventive maintenance, and remote support services.
Investments to shape the future
Bühler proactively shaped markets and industries with continued investments into innovation. Expenses for research and development (R&D) remained high at CHF 138 million or 4.6% of turnover. In 2024, Bühler launched 40 new products and services into the market and further expanded its global customer-facing setup, opening three new research and training centers: the Grain Innovation Center in Uzwil, Switzerland, the Grain Processing Innovation Center in Kano, Nigeria, and the North American Insect Center in Saskatoon, Canada. These centers provide customers with a collaborative platform to test new products and raw materials and scale ideas to industrial processes.
Balanced global business presence
Bühler’s balanced geographical footprint once more contributed to the company’s stability and reliability. While turnover grew in the Middle East and in Africa, it continued to decline in China. Overall, Bühler’s regional share of turnover was balanced: the Americas 28% (prior year: 29%); Europe 27% (28%); Asia 26% (27%); and Middle East, Africa & India 19% (16%).
Outlook 2025: focus on financial robustness and profitability
Building on its order book of CHF 1.9 billion, Bühler foresees stable volume development in 2025. The company’s focus will be on remaining a reliable and innovative partner for customers and other stakeholders globally. World-class quality and project management, as well as excellent services provided locally in all key markets, will continue to be essential differentiators. “Bühler is well prepared to capitalize on emerging opportunities in 2025. Our commitment to innovation, services, education, and training will remain as strong as ever and, through this, we aim to create value for our customers. At the same time, we will continue to invest in safe, attractive, and future-oriented workplaces for all our employees globally. The Bühler culture and values continue to be the foundation of everything we do, and our purpose, as always, is to create innovations for a better world,” says CEO Stefan Scheiber.