February 13, 2024 - In 2023, Bühler successfully navigated a complex and volatile global landscape and increased its profitability. The equity ratio also further improved. As an innovation solutions provider, the company benefited from many opportunities and gained market share from transitions in its key markets. In local currencies, turnover grew strongly, and orders improved slightly. With a high order book of CHF 2 billion, Bühler is well positioned for 2024. "We are satisfied with the outcome of 2023 and have proved again that we are a reliable partner in this dynamic world,"said Bühler CEO Stefan Scheiber.
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| Aerial view of Bühler headquarters, in Uzwil, Switzerland |
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In 2023, Bühler continued to strengthen its financial position, increasing the equity ratio to 51.1 percent (prior year: 49.8%).
Advanced Materials experienced another strong year
In 2023, the Advanced Materials business continued its success. Whereas turnover grew strongly by 15.9 percent to CHF 778 million, order intake fell by 11.2 percent to CHF 774 million, indicating that business volumes were normalising. In local currencies, turnover increased by 22.9 percent, while order intake reduced by 5.3 percent. With these results, the Advanced Materials business confirmed that it is in an upswing mode after a particularly strong order intake in 2022, driven by transformation in its industries. This enabled it to reach a record high turnover in 2023.
The Die Casting business area experienced significant growth reflecting the burgeoning demand for structural components for car bodies, including battery cases for electric vehicles, as well as for advanced megacasting solutions such as the new Carat 840 and 920 series. The Leybold Optics business area gained significantly from glass coaters for architectural applications and for car glass, from capacitors for e-mobility, grid applications, and the ongoing strong market trends in photonics and semiconductors.
Grains & Food performance driven by food security
In a challenging business environment, Grains & Food performed solidly. Turnover fell by 3.1 percent to CHF 2204 million, while order intake was down 0.7 percent to CHF 2357 million. In local currencies, turnover increased by 2.2 percent and order intake grew by 4.8 percent. The global demand to improve food security was a key driver for the Milling Solutions and Grain Quality & Supply business areas. While the challenging economic situation in China worked as a damper in most areas, especially in the Value Nutrition business, Grain Quality & Supply secured several larger orders for ship unloaders as a result of governmental efforts to improve food security.
Milling Solutions, the largest business are of Bühler, benefited from a global catch-up demand for large milling projects for grain processing, including numerous Greenfield installations. Projects were awarded to Bühler from all over the world - United States, Saudi Arabia, Venezuela, Europe, Africa and Southeast Asia, among others. Turnover growth was remarkable in the Chocolate & Coffee business area, and the Consumer Foods business area continued to recover both in volumes and profitability.
Services have become even more important for customers
Services continued to be a key strategic pillar in 2023, as they are the fastest lever to improve the productivity and consequently also the sustainability of Bühler customers' operations, by minimising energy, waste and water. Bühler's Customer Service business grew by 1.2 percent amounting to CHF 966 million, representing a 32 percent share of Group turnover.
Balanced global business footprint
While the economic environment differed strongly across key markets, Bühler's balanced geographical footprint allowed the company to benefit from market expansions and thus offset lower business volumes in other markets. The most notable developments were strong turnover growth in the Americas and significantly lower turnover volumes in China. Overall, Bühler's regional share of turnover was as follows: Americas 29 percent, Europe 28 percent, Asia 27 percent, Middle East Africa & India 16 percent.
Innovation as key success factor
In 2023, expenses for R&D remained at a high level at CHF 140 million (4.7% of turnover) and around 50 new customer solutions were launched. "We see profitable growth as a prerequisite for creating positive impact for a better world. This conviction guides our investments in the future development of our company, into innovative products and services, as well as in the development, education and training of people," says Stefan Scheiber.
In 2023, Bühler focused on the further implementation of its sustainability strategy. The highest impact Bühler can thereby create is with its customer solutions. In this respect, Bühler has committed to having solutions ready to multiply by 2025 that reduce energy, waste and water by 50 percent in the value chains of customers. For its own operations, it has developed a pathway to achieve 60 percent reduction of greenhouse gas emissions by 2030. By the end of 2023, Bühler achieved a reduction of nearly 20 percent compared to the 2019 baseline.
Training and education
In 2023, Bühler continued to focus on training and education of both customers and employees. Customers not only benefited from training at different specialist schools on all continents, but also from the broad offering of courses in the 25 Application & Training Centres around the world. With the opening of new locations in Brazil and Switzerland in 2023, Bühler added further to its capability to support its customers along complete value chains, from recipe development to final product development, and industrial scaling.
For its nearly 12,500 employees, Bühler built on its programs for development and lifelong learning. These enable its people to adapt and develop the skills needed to keep pace with a quickly changing and increasingly challenging work environment. Part of the concept is the Büler Energy Center in Uzwil, Switzerland, which has opened in June. It contains three pillars: Health & Lifestyle, focusing on health management; Lifelong Learning, focusing on vocational and adult learning; and Prototyping & Production, focusing on new manufacturing technologies. In 2023, Bühler trained 544 apprentices globally, 293 of whom in Switzerland.
Outlook: stable starting position for 2024
The economic climate in 2024 is still likely to be characterised by continued volatility. Nevertheless, Bühler is well positioned to navigate through dynamic times and to benefit from new opportunities that arise. A carryover of CHF 2 billion orders serves as a stable starting position for the business in 2024. Bühler remains committed to its strategic goal of profitable growth, its sustainability targets, and supporting the further development of its customers and employees.
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This blog is maintained by The Global Miller staff and is supported by the magazine Milling and Grain
which is published by Perendale Publishers Limited.
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