Hilti outperforms the market in a challenging year
Published 18/4 at 13:21With sales growth of 9.0% in local currencies (2.7% in Swiss francs), the Hilti Group closed 2023 with turnover of more than €6.62B. With this result, Hilti clearly outperformed the market and gained market share. Once again, the appreciation of the Swiss franc led to a significantly negative currency impact of 6.3% on sales. The operating result grew by 5.3% and reached €7.84M. Despite economic and geopolitical uncertainties, Hilti significantly invested into sales capacity, innovation and long term strategic projects.
An important growth driver was the completion of the global rollout of the new cordless platform ‘Nuron’. In addition to the more than 70 tools launched in 2022, 30 new tools were brought to market. Investment into research and development reached €462M (+3.9%), equal to 7.0% of the group’s sales and underlining Hilti’s strong focus on innovation. Following the acquisition of Fieldwire Inc. in 2021, Hilti acquired the 4PS Group in 2023, a Netherlands based local market leader in developing and providing business management solutions for the construction industry. As of the end of the year, the Hilti Group had 34,111 team members, an addition of 1,624 (+5.0%) compared to the previous year.
The operating result increased by 5.3% to €784M while net income decreased by 0.9% to €570M. The return on sales (ROS) improved by 0.3%, reaching 11.8% (2022: 11.5%). The return on capital employed (ROCE) increased by 0.1% to 13.3% (2022: 13.2%). Construction market forecasts point to a further softening with negative real growth in several geographies. The ongoing geopolitical tensions and the volatility in the financial markets will likely lead to a further appreciation of the Swiss franc. In 2024, the Hilti Group expects mid to single digit sales growth in local currencies and a similar ROS level in Swiss francs compared to 2023.
