Half Year 2024 Rieter Holding AG Earnings Call Transcript
Key Points
- Order intake increased by 24% in the first half of 2024, reaching CHF403.4 million.
- Rieter Holding AG (XSWX:RIEN) successfully launched the J70 air-jet spinning machine and secured significant orders from China.
- The company moved into a new headquarters designed to enhance customer centricity and innovation.
- The Next Level performance program led to significant overhead cost savings and a positive EBIT of CHF8.9 million.
- Net debt decreased to minus CHF243.9 million due to a reduction in operating working capital.
- Sales dropped by 44% compared to the previous year, totaling CHF421 million.
- Demand for consumables, wear and tear, and spare parts declined slightly.
- The EBIT margin was only 2.1%, reflecting the challenges of a low-market scenario.
- The company experienced some shifts in deliveries from 2024 into the first half of 2025, affecting order backlog stability.
- R&D expenses were substantially lower, raising concerns about future innovation capabilities.
Good morning. Bonjour. Buongiorno. Grüezi miteinander, ladies and gentlemen. Also a warm welcome from my side. First, let me start by briefly giving you an overview of what happened in the first half of 2024. The cover slide is still the same like in March. It shows our air-jet spinning machine J70. We unveiled the J70 last year at the industry's largest fair, ITMA, in Milan.
In June 2024, we then announced that we will install the world's first ever complete air-jet spinning system with J70 technology at Guangxi Baisheng Textile Company in China. So the future is no longer a plan, but it has become reality. The sale also reflects the strengths of our product portfolio, which is designed around automation, digitization and recycling. In the fiercely competitive markets in which we operate, this meets a key need of our customers.
Customer interest at the ITM exhibition in Istanbul in June 2024 confirmed our innovation approach. ROBOspin, our automatic piecing robot, was the centerpiece of our exhibition and
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