LEM Reports Nine-Month Results and Launches 'Fit for Growth' Program

LEM HOLDING SA announced a 27.1% decline in sales for the first nine months of the financial year 2024/25, down to CHF 230.9 million. Despite challenges, the Chinese automotive market showed improvement, with a 23% sequential sales growth, solidifying China's strategic importance for LEM.

The company's gross profit decreased by 32.3% to CHF 100.7 million, leading to a reduction in the gross profit margin from 47% to 43.6%. EBIT also fell sharply by 71% to CHF 20.1 million.

In light of these results, LEM announced the 'Fit for Growth' program, aimed at streamlining operations and focusing efforts on the Asian market, projected to enhance EBIT by CHF 18 to 22 million in 2025/26. The restructuring will reduce approximately 150 positions, primarily in Europe.

With management changes, the company anticipates a new management structure by April 2025, as it positions itself to tap into growth opportunities in Asia.