Rieter Acquired Petit Spare Parts SAS
Rieter Group, world leading supplier of systems for manufacturing yarn from staple fibers in spinning mills, has acquired the French company, Petit Spare Parts SAS, effective January 5, 2024. The acquisition is set to strengthen Rieter Group’s dynamic after-sales business.
Petit Spare Parts SAS is a renowned supplier in the textile world for spare parts, yarn guides, spindles and belts, based in Aubenas, France, and will be integrated seamlessly into Rieter’s after-sales network spanning 25 repair service stations in 20 countries. There are no structural or organizational changes foreseen.
The acquisition is an ideal fit that will strengthen Rieter’s Business Group After Sales, offering enhanced services and support to clients worldwide. Rieter’s after sales business develops, produces and distributes spare parts for Rieter machines as well as upgrades, conversions and retrofits.
“We are thrilled to welcome Petit Spare Parts SAS into the Rieter family. This acquisition reinforces our commitment to excellence in the textile sector. Petit Spare Parts SAS brings valuable expertise to our Business Group After Sales, and we are confident that this collaboration will unlock new avenues for growth and innovation,” says Rico Randegger, Head of the Rieter Business Group After Sales.
“This alliance with Rieter Group represents an exciting chapter for Petit Spare Parts SAS. As part of a globally recognized textile brand, we anticipate significant opportunities for growth and development. Our commitment to delivering top-notch services remains unwavering, and we are eager to explore new possibilities and collaborations,” stated Vasileios Kalos, Managing Director at Petit Spare Parts SAS.
Rieter Realizes Strong Sales in 2023 Despite Challenging Market Environment
On the other hand Rieter Group closed the financial year 2023 with slightly lower sales than in the previous year. According to the first, unaudited figures, total sales of CHF 1 418.6 million were achieved, which is around 6% down on the previous year (2022: CHF 1,510.9 million). Rieter expects a positive EBIT margin of around 7% for the full year 2023 (2022: 2.1%).
In line with expectations, the order intake of CHF 541.8 million was considerably below the previous year (2022: CHF 1.157.3 million).
Sales by business group The Business Group Machines & Systems recorded sales of CHF 965.0 million, a decrease of 7% compared to the previous year (2022: CHF 1.034.7 million). In the Business Group Components, sales fell to CHF 266.2 million, down 12% from the previous year (2022: CHF 303.5 million). The Business Group After Sales recorded sales of CHF 187.4 million, 9% higher than the previous year (2022: CHF 172.7 million).
Order Intake Increased in 2nd Half of 2023
In line with expectations, the order intake of CHF 541.8 million in 2023 was considerably below the previous year (2022: CHF 1.157.3 million). As already reported, the market situation is characterized by investment restraint due to geopolitical uncertainties, higher financing costs and consumer reticence in important markets. While Rieter recorded higher demand in the second half of 2023, project commitments have not yet been able to materialize.
At the end of 2023, the company had an order backlog of around CHF 650 million (December 31, 2022: CHF 1 540 million).
Rieter Expects a Positive EBIT Margin of 7% for 2023
Thanks to the measures taken under the “Next Level” performance program, Rieter improved profitability in the second half of 2023 and expects a positive EBIT margin of around 7% for the full year 2023 (2022: 2.1%). This puts it at the upper end of the guidance of between 5-7% defined in October 2023 and it is mainly attributable to a better operating performance.
Rieter will provide further details on the financial year on March 13, 2024. The Group will also publish its Annual Report 2023 and hold an annual results press conference.
The market remains challenging
Rieter is operating in a challenging market environment due to the economic and geopolitical conditions as well as the continuing weak demand. There are initial signs of a market recovery visible for the financial year 2024. Rieter will present an outlook for the financial year 2024 at the annual results press conference on March 13, 2024.
