Rieter Increased Sales by 22.2 Percent in the First Half of 2023

In the first half of 2023, Rieter increased its sales by 22.2% to CHF 758.2 million. Rieter’s EBIT of CHF 25.2 million and net profit of CHyarn F 13.3 million

Cyclical market downturns in the individual market segments, which were already apparent in the second half of 2022, led to an order intake of CHF 325.0 million (-62.6%) in the reporting period, lower than in the corresponding period of the previous year.

At the EBIT level, Rieter posted a profit of CHF 25.2 million in the first half of 2023, compared with a loss of CHF -10.2 million in the same period of the previous year. This positive result is attributable to the increased sales and higher gross profit as a percentage of sales of 23.9% (first half of 2022: 21.0%).

In the first half of 2023, Rieter posted sales of CHF 758.2 million (first half of 2022: CHF 620.6 million). This corresponds to an increase of 22.2%, despite the fact that deliveries for Türkiye had to be postponed or cancelled, mainly in the Business Group Machines & Systems.

Order Intake Decreased in the First Half of 2023

Order intake in the first half of 2023 was CHF 325.0 million (first half of 2022: CHF 869.4 million). As expected, demand thus weakened significantly from the high level of the corresponding previous year period.

Order intake in almost all regions was characterized by the reluctance to invest in new machines. Only in China did order intake increase due to investments by spinning mills in improving their local competitiveness. In addition, some customers held back pending investment decisions and waited for the innovations presented at ITMA in Milan in June 2023.

Rieter to Reduce Operating Costs with the ‘Next Level’ Program

The challenging market situation over the past two years was marked by severe disruptions in the global supply chain in conjunction with rising material, energy, labor, and production costs. The current global demand for textile products remains at a low level. To increase long-term value for customers, employees, and shareholders, Rieter, as technology leader, is planning a performance program called “Next Level”.

The goal of the program is to strengthen sales excellence, sharpen customer focus, improve cost efficiency in production and optimize fixed cost structures. The one-time cost of the program is anticipated to be around CHF 45 to 50 million, which will have an impact on the second half of 2023. With these measures Rieter is aiming to reduce operating costs by some CHF 80 million per year.

The program includes provisions for the net reduction of around 300 positions throughout the Group in relation to overhead functions. The possibility of further market- and volume-related adjustments in the order of 400 to 600 positions cannot be excluded. At the end of June 2023, Rieter had a global workforce of 5 555 employees. The consultation processes with the employee representatives are expected to begin in the near future. Rieter will provide information about the outcome at the appropriate time.

As communicated on July 10, 2023, Rieter sold the land at Klosterstrasse in Winterthur (Switzerland), which was no longer required for operations, to the company Allreal, Glattpark (Switzerland). The company is acquiring the land with a total area of around 75 000 m2. The agreed sales price is CHF 96.0 million.

ITMA 2023 was Successful for Rieter

The textile exhibition ITMA in Milan in June 2023 was a resounding success for Rieter. The company showcased innovations in ring and air-jet spinning, as well as in fiber and spinning preparation. The products for increased automation and digitization of spinning mills and solutions in the area of recycling and sustainability were also very well received by customers. The reservation lists for all new machines were fully booked within a few days.