Bühler improves profitability in 2023

In 2023, Bühler successfully navigated a complex and volatile global landscape and increased its profitability. The equity ratio also further improved.  

As an innovative solution provider, the company benefited from many opportunities and gained market share from transitions in its key markets. 

In local currencies, turnover grew strongly, and orders improved slightly. With a high order book of CHF 2.0 billion (USD 2.25 billion) , Bühler is well positioned for 2024.
 

Stefan Scheiber, CEO at Bühler Group

Stefan Scheiber, CEO of Bühler:
 

"We are satisfied with the outcome of 2023 and have proved again that we are a reliable partner in this dynamic world."

At Group level and in Swiss Francs, Bühler performed well with a slightly increased turnover of CHF 3.0 billion (USD 3.38 billion) (+1.0%). 

Order intake was CHF 3.2 billion (USD 3.69 billion) (-3.8%) and the order book remained high at CHF 2.0 billion (USD 2.25 billion). 

EBIT rose by 8.9% to CHF 216 million (USD 243 million) with a corresponding EBIT margin of 7.2% (prior year: 6.7%).

Net profit increased by 16.3% to CHF 179 million (USD 201 million) (prior year: CHF 154 million), corresponding with a margin of 5.9% (prior year: 5.2%). The impact of foreign exchange rates was significant. 

In local currencies, orders improved by 2% to CHF 3.3 billion (USD 3.7 billion), turnover by 7% to CHF 3.2 billion, and EBIT by 17% to CHF 233 million (263 million).

In 2023, Bühler continued to strengthen its financial position, increasing the equity ratio to 51.1% (prior year: 49.8%). 

Advanced Materials experienced another strong year 

In 2023, the Advanced Materials business continued its success. Whereas turnover grew strongly by 15.9% to CHF 778 million (USD 877 million), order intake fell by 11.2% to CHF 774 million (USD 873 million), indicating that business volumes were normalizing. 

In local currencies, turnover increased by 22.9%, while order intake reduced by 5.3%. With these results, the Advanced Materials business confirmed that it is in an upswing mode after a particularly strong order intake in 2022, driven by transformation in its industries. This enabled it to reach a record high turnover in 2023. 

The Die Casting business area experienced significant growth reflecting the burgeoning demand for structural components for car bodies, including battery cases for electric vehicles, as well as for advanced megacasting solutions such as the new Carat 840 and 920 series. 

The Leybold Optics business area gained significantly from glass coaters for architectural applications and for car glass, from capacitors for e-mobility, grid applications, and the ongoing strong market trends in photonics and semiconductors. 

Grains & Food performance driven by food security 

In a challenging business environment, Grains & Food performed solidly. Turnover fell by 3.1% to CHF 2,204 million (USD 2.49 million) , while order intake was down 0.7% to CHF 2,357 million (USD 2.66 million). 

In local currencies, turnover increased by 2.2% and order intake grew by 4.8%. The global demand to improve food security was a key driver for the Milling Solutions and Grain Quality & Supply business areas. 

While the challenging economic situation in China worked as a damper in most areas, especially in the Value Nutrition business, Grain Quality & Supply secured several larger orders for ship unloaders as a result of governmental efforts to improve food security. 

Milling Solutions, the largest business area of Bühler, benefited from a global catch-up demand for large milling projects for grain processing, including numerous greenfield installations. 

Projects were awarded to Bühler from all over the world – United States, Saudi Arabia, Venezuela, Europe, Africa, and Southeast Asia, among others. Turnover growth was remarkable in the Chocolate & Coffee business area, and the Consumer Foods business area continued to recover both in volumes and profitability. 

Services have become even more important for customers 

Services continued to be a key strategic pillar in 2023, as they are the fastest lever to improve the productivity and consequently also the sustainability of Bühler customers’ operations, by minimizing energy, waste, and water. 

Bühler’s Customer Service business grew by 1.2% amounting to CHF 966 million (USD 1.089 billion), representing a 32% share of Group turnover. 

Balanced global business footprint 

While the economic environment differed strongly across key markets, Bühler’s balanced geographical footprint allowed the company to benefit from market expansions and thus offset lower business volumes in other markets. 

The most notable developments were strong turnover growth in the Americas and significantly lower turnover volumes in China. Overall, Bühler’s regional share of turnover was as follows: Americas 29%, Europe 28%, Asia 27%, Middle East Africa & India 16%. 

Innovation as key success factor 

In 2023, expenses for R&D remained at a high level at CHF 140 million (USD 158 million) (4.7% of turnover) and around 50 new customer solutions were launched.

Stefan Scheiber:
 

"We see profitable growth as a prerequisite for creating positive impact for a better world. This conviction guides our investments in the future development of our company, into innovative products and services, as well as in the development, education, and training of people."

In 2023, Bühler focused on the further implementation of its sustainability strategy. The highest impact Bühler can thereby create is with its customer solutions (Scope 3). 

In this respect, Bühler has committed to having solutions ready to multiply by 2025 that reduce energy, waste, and water by 50% in the value chains of customers. For its own operations (Scopes 1 and 2), it has developed a pathway to achieve a 60% reduction of greenhouse gas emissions by 2030. By the end of 2023, Bühler achieved a reduction of nearly 20% compared to the 2019 baseline. 

Mark Macus, Group Chief Financial Officer at Bühler Group

Training and education 

In 2023, Bühler continued to focus on training and education of both customers and employees. Customers not only benefited from training at different specialist schools on all continents, but also from the broad offering of courses in the 25 Application & Training Centers around the world. 

With the opening of new locations in Brazil and Switzerland in 2023, Bühler added further to its capability to support its customers along complete value chains, from recipe development to final product development, and industrial scaling. 

For its nearly 12,500 employees, Bühler built on its programs for development and lifelong learning. These enable its people to adapt and develop the skills needed to keep pace with a quickly changing and increasingly challenging work environment. 

Bühler's headquarters in Uzwil Switzerland

Part of the concept is the Bühler Energy Center in Uzwil, Switzerland, which was opened in June. It contains three pillars: Health & Lifestyle, focusing on health management; Lifelong Learning, focusing on vocational and adult learning; and Prototyping & Production, focusing on new manufacturing technologies. In 2023, Bühler trained 544 apprentices globally, 293 of whom in Switzerland. 

Outlook: stable starting position for 2024

The economic climate in 2024 is still likely to be characterized by continued volatility. Nevertheless, Bühler is well positioned to navigate through dynamic times and to benefit from new opportunities that arise. 

A carryover of CHF 2.0 billion orders serves as a stable starting position for the business in 2024. Bühler remains committed to its strategic goal of profitable growth, its sustainability targets, and supporting the further development of its customers and employees.