MCH Group remains in the red
Published: Thursday, Mar 28th 2024, 09:20
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The exhibition and marketing company MCH Group remains in the red. At CHF 14.0 million, the bottom line for 2023 was even higher than in the previous year. However, this is also due to a special effect.
In operational terms, on the other hand, the MCH Group fared better again last year. The core business of exhibitions, in particular, posted higher sales. Sales in this business segment rose by just under 30 percent to CHF 185.8 million, as can be seen from the annual report published on Thursday.
By contrast, the group's second mainstay, the Experience Marketing Division, which includes the conception and organization of marketing events and the construction of exhibition stands, suffered a drop in sales (-10 percent). At CHF 393.7 million, the MCH Group's overall turnover remained practically at the previous year's level.
In operational terms, a profit of CHF 12.3 million was achieved at EBITDA level. The MCH Group thus appears to be less profitable in 2023 than in the previous year, when EBITDA amounted to CHF 14.0 million. However, the result is burdened by a provision of CHF 4.2 million. This had to be formed for a tarred surface on a parking lot previously rented in Zurich, the removal of which is theoretically legally recoverable from the owner of the parking lot.
Excluding this special effect, the MCH Group was more profitable. At CHF 16.5 million, the adjusted EBITDA rose by around 18 percent compared with 2022. However, even after deducting the provision, the bottom line loss of CHF 9.8 million was even higher than the deficit of CHF 9.3 million in 2022.
More hesitant outlook from management
The MCH Group remains optimistic for 2024 and expects a further improvement in the operating result. In addition, it will "do everything in its power to reach the break-even point", as stated in the media communiqué. The management of the MCH Group has thus backtracked on earlier statements. Previously, the company had definitely expected to be back in the black in 2024.
The MCH Group has been making losses since 2017, as it had already been overwhelmed by the transformation process in the exhibition business before the coronavirus pandemic. The MCH Group was plunged into a real crisis after the Swatch Group, the largest exhibitor at the Baselworld watch and jewelry fair, turned its back on the event.
The company is now in the process of picking itself up again: Baselworld may be history, but numerous other exhibitions and, in particular, the Art Basel art fair are meeting with a good response on the market. The MCH Group is also aiming for success in the experience marketing sector.
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