The Mikron Group continued its upward trajectory in the recent fiscal year, further enhancing its financial performance. Both business segments experienced growth in annual net sales, delivering strong results. The Automation division notably outperformed with above-average growth, while the Machining division also saw an increase in sales.
The Mikron Group is renowned for developing, manufacturing, and marketing highly precise, efficient, and flexible automation solutions, machining systems, and cutting tools. With a strong foundation in Swiss innovation, the company collaborates globally with companies in industries such as pharmaceuticals, medical technology, consumer goods, automotive, and general engineering.
By leveraging over a century of experience, cutting-edge technologies, and worldwide service, the Group empowers its clients to enhance quality and productivity. Its two primary divisions, Mikron Automation and Mikron Machining Solutions are headquartered in Switzerland, with additional manufacturing facilities in the United States, Germany, Singapore, China, and Lithuania. Mikron Holding AG’s shares are publicly traded on the SIX Swiss Exchange (MIKN).
The Tool division’s strategic positioning played a key role in driving overall performance. The Group’s net sales climbed from CHF 309.4 million to CHF 370.2 million, marking a 19.7% increase. Order intake reached CHF 412.1 million, surpassing the previous year’s record of CHF 408.0 million by 1.0%. EBIT for 2023 reached CHF 35.3 million, up 33.7% from CHF 26.4 million in 2022. The profit for the year also grew to CHF 28.8 million, a 19.0% increase from CHF 24.2 million in 2022.
In 2023, all branches of the Mikron Group excelled, meeting key development goals and advancing their growth and profit objectives sustainably. They capitalized on robust demand in key sectors like pharmaceuticals, medical technology, watchmaking, and writing. The role of the combustion engine in Mikron’s sales has diminished. To combat inflation, all divisions regularly reviewed pricing and adjusted as necessary.
By engaging in proactive discussions with suppliers and customers, Mikron effectively managed increases in raw material and energy costs, preserving profitability. Additionally, Mikron successfully navigated fluctuations in exchange rates, further safeguarding profitability. The easing of global supply chain constraints from the second half of 2023 also positively impacted the Group’s net sales and profitability.
In 2023, the Mikron Group reported a 1.0% increase in order intake, totaling CHF 412.1 million compared to CHF 408.0 million in the previous year. Net sales for the year reached CHF 370.2 million, a significant rise from CHF 309.4 million in 2022, marking a 19.7% increase. The European market, including Switzerland, remained the most important for Mikron, accounting for 59% of total net sales in 2023, up from 49% in 2022. North America followed at 25%, down from 30% the previous year.
The pharmaceutical and medical technology sectors continued to be the strongest market segment, contributing 57% to total net sales, up from 55% in the prior year. The automotive industry’s share decreased to 7% from 12% in the previous year. The Mikron Group ended 2023 with a high order backlog of CHF 304.3 million, up 12.4% from the previous year’s figure of CHF 270.7 million. Capacity utilization was high across all three divisions throughout the year.
In terms of financial performance, Mikron saw improvements in its EBIT and profit figures in 2023. EBIT increased from CHF 26.4 million to CHF 35.3 million, a 33.7% increase, including a one-off positive effect of CHF 2.2 million from the sale of a non-operating property in Nidau, Switzerland. The Group achieved an EBIT margin of 9.5% in 2023, up from 8.5% in 2022.
Profit increased from CHF 24.2 million to CHF 28.8 million, a 19.0% increase, with profit per share reaching CHF 1.73, compared to CHF 1.47 in the previous year. The Mikron Group’s return on net assets (RONA) for 2023 was an impressive 23.8%. The Board of Directors will propose a distribution of CHF 0.50 per share to shareholders at the General Meeting on April 23, 2024, up from CHF 0.40 in the previous year.
Looking ahead to 2024, Mikron is cautiously optimistic, with a solid cost structure, a strong order backlog, and steady demand in key markets. However, given the current global economic uncertainties and conflicts, the Group finds it challenging to provide a forecast for 2024. Despite this, Mikron expects overall sales to remain stable in 2024, with a similar operating result margin to 2023.
