EMS Group, operating under EMS-CHEMIE HOLDING AG and specializing globally in High Performance Polymers and Specialty Chemicals, reported robust financial results for the first half of 2024 despite challenging market conditions. Net sales totaled CHF 1,087 million (1,183), with a net operating income of CHF 291 million (280). Despite the impact of a stronger Swiss Franc on net sales, EMS’s strategic global sales initiative, launched in 2023, yielded profitable new business in early 2024, exceeding previous year figures in both sales volumes and net operating income.
The global economic landscape remained weak in the first half of 2024, particularly in key markets like Europe and China, where consumer confidence and industrial activity were subdued amid ongoing geopolitical tensions and reduced spending power. However, EMS continued to focus on expanding its market presence through innovative specialty solutions. This proactive approach, initiated in 2023 to enhance sales and development across Asia, America, and Europe, contributed to significant advancements in sectors such as electric vehicles and healthcare.
Despite adverse currency effects and market challenges, EMS achieved a notable net operating income (EBIT) of CHF 291 million (280) and net operating income before depreciation (EBITDA) of CHF 318 million (305). This performance represented a 4.0% increase in EBIT and a 4.3% increase in EBITDA compared to the previous year, with EBIT margins reaching 26.8% (23.6) and EBITDA margins at 29.3% (25.8).
Looking ahead to the remainder of 2024, EMS anticipates a persistently challenging economic environment characterized by geopolitical uncertainties, inflationary pressures impacting consumer purchasing power, and escalating costs of raw materials and transportation. Despite these challenges, EMS remains committed to its growth strategy, focusing on innovative solutions that enhance cost efficiency, energy savings, and CO2 reduction, thereby reinforcing its global market position.
At the upcoming Annual General Meeting on August 10, 2024, EMS-CHEMIE HOLDING AG will propose the re-election of current board members Bernhard Merki (Chairman), Magdalena Martullo, and Rainer Roten. Dr. Joachim Streu, a longstanding board member, has decided not to seek re-election due to age considerations. Additionally, Kaspar W. Kelterborn is proposed as a new member of the Board of Directors and the Remuneration Committee.
Furthermore, EMS plans to maintain its dividend policy, proposing an overall dividend of CHF 16.00 (20.00) per share for the 2024 fiscal year. The company also continues to execute its investment program announced in 2021, focusing on expanding capacity and enhancing energy efficiency at its main facility in Domat/Ems, Switzerland. A new large-scale plant, featuring an innovative manufacturing process that halves energy consumption, commenced operations in the first quarter of 2024 to meet growing customer demand.
