VAT Group saw a decline in profit and earnings for the year 2023, as the semiconductor industry continues to present challenging conditions.
Share Performance
Shares of the Switzerland-based valve manufacturer dropped by 2.55% to CHF443.60 as of 1219 GMT on Tuesday, marking a 54% increase from the previous year.
Financial Results
The company reported a 38% decrease in full-year net profit, amounting to 190.3 million Swiss francs ($215 million). Earnings before interest, taxes, depreciation, and amortization also fell by 32% to CHF270.9 million, resulting in a margin decline of 4.4 percentage points to 30.6%.
Confirmation of Figures
VAT Group confirmed its preliminary order intake of CHF691.9 million and sales figures of CHF885.3 million, which were previously published in January.
Analyst Expectations
Analysts had anticipated net profit to be at CHF181.6 million, Ebitda at CHF269.9 million, and revenue at CHF882.7 million, according to a consensus compiled by Visible Alpha.
Outlook for 2024
Looking ahead to 2024, VAT Group anticipates improved market conditions that will translate into better results. Investments in semiconductor manufacturing equipment are expected to bounce back from the low levels observed in the previous year. Furthermore, growth is anticipated in the advanced industrials sector, and the service business is poised to benefit from increased capacity utilizations at chip-making facilities.
First Quarter Projections
For the first quarter of the year, the company foresees sales ranging between CHF185 million and CHF205 million.
