Schindler increases profitability

14 February 2024 11:58

Lucerne Business

Ebikon - Schindler increased its revenue by 1.3 per cent in 2023 to just under 11.5 billion Swiss francs. The operating profit (EBIT) recorded disproportionately strong growth to almost 1.2 billion francs, against a backdrop of the company’s greater operational efficiency and pricing measures.

In 2023, Schindler generated global revenue totaling 11.49 billion francs. This equates to year-on-year growth of 1.3 per cent, according to a press release issued by the Lucerne-based elevator manufacturer. In local currencies the revenue growth was considerably higher, at 7.4 per cent.

The operating profit (EBIT) grew by 31.4 per cent year on year to 1.19 billion francs. According to Schindler, this improvement in profitability is attributable to greater operational efficiency, supply chain recovery and the company’s pricing measures. “Notwithstanding weakening construction markets and persistent foreign exchange pressure, we continued our trajectory of enhanced profitability and sustainable growth,” says Silvio Napoli, Schindler Chairman and CEO.

Net profit increased by 41.9 per cent year on year to 935 million francs. A dividend of 5 francs per share will be proposed; this comprises an ordinary dividend of 4 francs and an extraordinary dividend of 1 franc per registered share and per participation certificate. The latter will be proposed to mark the 150th anniversary of the company.

For 2024, Schindler is anticipating low single-digit revenue growth in local currencies. The EBIT margin is set to increase to 11 per cent in 2024 and to 13 per cent in the medium term. An EBIT margin of 10.3 per cent was achieved in the reporting year. ce/hs

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