LANDIS+GYR: Joy reigns; good figures!

The leading provider of energy management solutions LANDIS+GYR has published brilliant half-year figures (as at the end of September); they were significantly better than expected! The technology company increased its sales by a truly impressive +32.1% to USD 970.5 million. Incoming orders were +22.5% up on the previous year, while the order backlog grew by +7.2%. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) more than doubled, and profit reached USD 41.2 million, compared with USD 186.5 million, which included a gain of USD 160.6 million from the sale of the minority stake in Intellihub. The strong result was driven in particular by developments in America and Europe. However, LANDIS+GYR is also said to be well positioned in the Asia/Pacific region, where the potential is still very high. The technology group has also been able to gain market share in all regions, even in its home market of Switzerland. The problems with the supply chain have also been significantly reduced and freight costs have normalized. Costs are to be reduced further in the future and should return to around the 2021 level by 2024. The supply chains, which were still a burden until recently, have resulted in orders being processed more quickly - a trend that US competitors have already demonstrated. The only slightly negative point in the company's figures was the free cash flow development, which was negatively impacted by the inventory build-up.

The company is basically sticking to its forecast for 2023/24, but has specified that the adjusted EBITDA margin will reach the upper end of the previously communicated range of 9 to 11%. LANDIS+GYR can look back on the first half of the year with great confidence. The technology company also anticipates pleasing and clearly "inflation-resistant" growth figures for the future. With a target price of CHF 76, we would still take the profit!