Lower Sales and Margins for Zehnder Group in H1 2024

In a challenging market, Zehnder Group AG reported a 15% decline in sales to EUR 344.7 million in the first half of 2024. Both the ventilation and radiator segments saw reduced sales, with a significant impact from decreased construction activity and weaker renovation demand.

The operating result (EBIT) was EUR 12.5 million, translating to a 3.6% margin. This includes a one-off loss of EUR 8.1 million from divesting the Climate Ceilings Solutions business and organizational adjustment costs of EUR 2.0 million. EBIT before these one-off effects stood at EUR 22.6 million, stabilizing the margin at 6.6%.

Cash flow from operating activities dropped 36% to EUR 14.3 million. Investments in property, plant, and equipment were EUR 8.4 million, and the company spent EUR 4.7 million acquiring the remaining stake in Zehnder Caladair International SAS. Net liquidity increased to EUR 53.0 million.

Zehnder Group anticipates no significant recovery in residential construction or renovation projects for 2024, projecting full-year sales between EUR 670 million and EUR 700 million, and an EBIT margin of 6-7%.