MCH Group makes a small profit in the first half-year
Published: Tuesday, Sep 10th 2024, 08:00
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The MCH Group made a small profit again in the first half of 2024 after a loss-making year in 2023. The exhibition and marketing company is in the process of stabilizing its business.
Sales rose by 8.3% to 236.6 million Swiss francs in the first half of the year compared to the same period last year, as detailed in a press release issued on Tuesday. Operating profit EBITDA reached 15.3 million after 20.0 million. However, the result for the first half of 2023 included a positive one-off effect.
MCH also puts organic EBITDA growth for the reporting period at +0.9 million. "After several challenging years, the first clear progress in the turnaround process has been made," the company says. The aim is "long-term financial health as a foundation for sustainable corporate success and significant growth".
Measures for cost savings
The bottom line was a net profit of 3.6 million after 4.7 million in the previous year. A year ago, the result was positive thanks to a one-off effect of CHF 5.5 million, and it was the first time since the first half of 2018 that the company made a profit.
In the first half of 2024, the Group invested in stabilizing its business activities. The 2030 strategy was defined together with the Board of Directors: In the current phase, the company is focusing on improving efficiency and making cost savings. Initial measures have been taken worldwide to improve the organization and processes.
Looking to the future, the focus in the second half of the year will be on achieving a break-even net result. The main objectives are to improve profitability and consolidate earnings. Sales growth is expected to be moderate, mainly due to seasonal fluctuations in the company's own exhibition business in Switzerland.
Successful "Art Basel" fairs expected
However, this should be offset by a strong performance in the USA and the Middle East in the Experience Marketing division, as well as successful "Art Basel" trade fairs in Paris and Miami Beach.
In 2023, MCH had suffered a net loss of CHF 14 million. Most recently, in March, with a view to the current 2024 financial year, the company stated that it would "do everything in its power to break even".
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. It 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. Although Baselworld is now history, MCH is now focusing on numerous other exhibitions - in particular the Art Basel art fair - and on experience marketing.
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