Shares of SFS Group AG (SWX:SFSN) fell by 3% as the company's preliminary second-half and full-year results for fiscal year 2024 showed a slight decline in sales and a miss against consensus expectations.
The Swiss-based manufacturer reported a 1.1% year-on-year (YoY) decrease in sales for the second half of 2024, amounting to CHF1,494 million, which was 2% lower than market predictions.
The company's Engineered Components segment posted a marginal increase of 1% YoY, reaching CHF566 million, outperforming consensus by 5%. However, this was not enough to offset the declines in other divisions. The Fastening Systems segment experienced a 1% YoY growth, generating CHF237 million but fell short of expectations by 19%. The Distribution & Logistics sector saw a 3% YoY decrease in sales to CHF692 million, aligning with consensus.
For the full fiscal year 2024, SFS Group reported sales of CHF3,039 million, a 1.7% decrease YoY, and 1% below consensus. The Engineered Components segment again provided a bright spot with a 2% YoY increase to CHF1,115 million, surpassing consensus by 3%.
Conversely, Fastening Systems sales dropped by 5% YoY to CHF481 million, underperforming consensus by a significant 10%. Distribution & Logistics reported a 3% YoY drop in sales to CHF1,443 million, also 1% below consensus.
Despite the sales shortfall, the company's earnings before interest and taxes (EBIT) for the second half showed a slight improvement, with an implied EBIT of CHF171.7 million, a 2% increase YoY.
The EBIT margin for the period stood at 11.5%, compared to 11.2% in the previous year. For the full year, EBIT was CHF352.5 million, down 2% YoY, with a margin of 11.6%, slightly down from 11.7% in the prior year.
Investors reacted to the mixed financial performance as the company's stock price adjusted to the news. SFS Group's audited full-year results for fiscal year 2024 are scheduled to be released on March 7, which may provide further insights into the company's performance and outlook.