The Swiss Times - Swiss News in English

Hilti makes slightly less profit in 2023 despite higher sales

Despite higher sales, the construction equipment manufacturer Hilti generated slightly lower bottom-line profits in 2023. There are still numerous uncertainties, but the Liechtenstein-based company is sticking to its growth plans for the current year.

Operating profit rose by 5.3 percent to 770 million Swiss francs, as Hilti announced on Friday. At the bottom line, however, net profit fell slightly by 0.9 percent to 560 million.

Back in January, the manufacturer of the famous red drills reported a 2.7 percent increase in sales to 6.5 billion Swiss francs - despite a massively negative currency effect that depressed sales by over 6 percent. The Group grew faster than the market and gained market share accordingly.

Higher investments and more employees

A key growth driver in 2023 was the global launch of the new Nuron battery platform. In addition to the more than 70 devices from 2022, 30 new ones were added. Meanwhile, Hilti continued to focus on innovation and invested 454 million Swiss francs, almost 4 percent more in research and development than in the previous year. The number of employees rose by 5 percent to 34,111.

For the current 2024 financial year, Hilti is sticking to its January outlook and expects sales growth in local currencies in the mid-single-digit percentage range. The return on sales in Swiss francs is expected to be at a similar level to 2023.

However, the ongoing geopolitical tensions and fluctuations on the financial markets are likely to lead to a further appreciation of the Swiss franc. Forecasts for the construction industry point to a further slowdown with negative real growth in several regions.

©Keystone/SDA

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