Bossard Holding, the Swiss fastener technology and logistics company, reported a decline in profit and sales for the first half of the year. The drop was mainly attributed to weaker demand in Europe and China, reflecting the challenging economic and geopolitical environment. The company’s full-year outlook is uncertain.
Net profit for the first half of the year decreased from CHF59.9 million to CHF49.9 million, while sales fell from CHF586 million to CHF577 million. Similarly, earnings before interest and taxes declined from CHF77.2 million to CHF69.6 million in 2022.
Labor Shortage and Wage Inflation
Bossard experienced a shortage of skilled labor, which affected its first-half performance. Additionally, wage inflation was observed in both Europe and America.
Looking ahead, Bossard anticipates moderate demand in the next six months. This expectation stems from customers’ inventory reductions and stable purchase prices. However, given the uncertain economic environment, geopolitical tensions, and increasing trade conflicts, the company acknowledges that the outlook for the rest of the year carries significant uncertainty and risk.
Bossard had previously projected an organic growth rate of over 5% and an EBIT margin between 12% and 15% in the medium term following increased investments.