Datwyler notes pressure on margins as input costs rise

Altdorf, Switzerland – Datwyler Group has reported pressure on its earnings margins in 2022, due to the sharp rise in input costs and a temporary closure of its subsidiary in Ukraine.

The Swiss group reported a 7% year-on-year decline in operating results (EBIT) to CHF149 million (€150 million), on 21% higher sales of CHF1.1 billion.

EBIT margin fell to 13% for the year, down from a level of 16.9% reported in 2021.

In a 9 Feb statement, Datwyler said the increased revenues reflected its acquisitions of QSR in the US and Xinhui in China, as well as the implementation of price rises.

The earnings decline was linked to the delayed impact of price increases, restructuring measures and the temporary closure of its Ukrainian subsidiary.

Commenting on Datwyler’s performance, CEO Dirk Lambrecht said the group had “coped well” amid all the challenges of the past year.

The Altdorf-based group, he noted, had completed the takeovers of QSR and Xinhui and expanded its Indian healthcare production site during the year.

And having made “promising progress” in a range innovation projects, Lambrecht said Datwyler was “in a strong strategic position.”

During 2022, the group's ‘healthcare solutions’ business area increased operating results by 1.6% to CHF106 million, on 11.5% higher sales of CHF520.3 million.

Datwyler said revenue from components for Covid vaccines delivery declined “as expected”, with an accelerating trend towards the yearend.

The healthcare unit was able to pass the “significantly increased costs” for input factors onto its customers over the course of the reporting year.

Datwyler's ‘industrial solutions’ business area, on the other hand, saw operating results fall 23% to CHF43 million, on 30.2% higher sales of CHF636.1 million.

While acquisitions helped to drive up revenue, Datwyler said the “significantly higher input costs” and the delayed impact of price increases impacted the unit's operating result.