$RSGN - BRIEF-R&S Group Announces Organic Net Sales Growth Of 15% And Operating Performance Above Expectations for HY

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I'll look at the figures later and report again. Looks very good at first glance!

GG

Update 1:

The Basel-based transformer manufacturer recorded a 15% increase in sales and an 18% rise in incoming orders in the first half of the year.

R&S will increase its production capacity to meet rising demand.

R&S performed well in the first half of 2024. Both sales and incoming orders increased significantly for the newcomer to the stock exchange.

According to a press release issued on Wednesday, sales from January to June climbed by 15% to CHF 109.9 million and order intake by 18% to CHF 141.0 million. The order backlog at mid-year was a record CHF 218.2 million.

The strong growth in key figures comes as no surprise, as R&S had already raised its outlook for 2024 and its medium-term forecast in May due to the good business performance.

Delay in new plant

R&S will increase its production capacity in order to meet rising demand. However, the opening of a new plant in Poland has been slightly delayed due to late machine deliveries. Production is now scheduled to start in October 2024 - the first deliveries will be made in the fourth quarter of 2024.

In addition, the company anticipates higher tax expenses in 2024 than previously expected due to a one-off tax payment of CHF 3.7 million for previous periods.

Nevertheless, the profit forecast is confirmed.

Accordingly, the Group anticipates sales growth of more than 12%, an EBIT margin of around 20% and a free cash flow margin in the mid-double-digit range as a percentage of net sales.

The full half-year report will be presented on September 11.