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(Ad hoc announcement pursuant to Art. 53 LR)
(Ad hoc announcement pursuant to Art. 53 LR)
The EMS Group, active worldwide in the business areas High Performance Polymers and Specialty Chemicals and with its companies combined in EMS-CHEMIE HOLDING AG, achieved net sales of CHF 1'589 million (1'697) in the first nine months of 2024. In the third quarter, the strong Swiss Franc continued to hamper net sales development in Swiss Francs. The global sales offensive, launched in 2023 and since then continually expanded, delivered excellent results with profitable new business. As a consequence, net operating income (EBIT), already slightly above previous year for the first six months, was significantly higher than previous year in the third quarter.
As expected, development of the global economy remained restrained and the consumer mood subdued, particularly in the main markets Europe and China. Armed and geopolitical trade conflicts are dampening the global consumer mood and causing uncertainty among companies and consumers. Higher prices due to inflation are weakening purchasing power. Germany, Europe's leading industrial nation, remains in a recession and the manufacturing industry still shows no recovery. In China, there is a continuing lack of confidence and the real estate market is undergoing some adjustments. The currently uncertain times are strengthening the Swiss Franc in its role as a "safe haven".
In this weak market environment, EMS focuses consistently on increasing market penetration with innovative specialties. Planned new business was realized successfully and sales volumes as well as net operating income of the EMS Group were pleasingly increased compared to previous year.
Against the general trend, EMS had already decided in 2023 to massively expand sales and development in all three regions of Asia, America and Europe. The subsequent high number of additional development projects and new business already generated has encouraged EMS to pursue this organizational expansion even more intensively. With its innovative and customer-oriented development expertise, EMS is responding to the strong market demand for innovative system solutions for cost and energy savings, reduction of CO2 emissions as well as new technologies in the automotive and healthcare sectors. Due to successful new business, the EBIT margin increased pleasingly.
For 2024, EMS continues to expect net sales slightly below previous year due to currency effects and net operating income (EBIT) slightly above previous year.