Transformation program as accelerator for profitable growth

The customers in the Healthcare Solutions business area were still reducing their safety stocks in the reporting year. This led to revenue of CHF 446.0 million (previous year: CHF 469.0 million). Despite constituting a currency-adjusted decline of 2.5% compared to the previous year, this is the fourth-highest result in Datwyler’s history. The previous year still included CHF 7.5 million in sales of high-margin components for COVID-19 vaccines. Due to the lower demand and the negative currency effects, the adjusted operating result (EBIT) declined to CHF 61.8 million (previous year: CHF 74.4 million). The adjusted EBIT margin came to 13.9% (previous year: 15.9%). After allocating one-off costs for the announced transformation program, reported EBIT amounted to CHF 47.0 million. Datwyler took advantage of the market weakness in the reporting year to further optimize processes at the production sites and reduce complexity of workflows. At the same time, capacities and skills were maintained specifically in order to be well prepared for the expected market recovery.

Despite a largely weak market environment, the Industrial Solutions business area was able to generate revenue of CHF 664.8 million in 2024 (previous year: CHF 688.2 million). Adjusted for currency effects, this corresponds to a decline of 1.0%. Global production of passenger cars was down slightly in the year under review and volume growth in battery electric vehicles was slower than originally expected. In addition, the oil and gas industry was dominated by high levels of uncertainty and caution in the US election year. Despite the tangible headwind caused by the strong Swiss franc, the business area was able to increase its adjusted operating result (EBIT) by 22.4% to CHF 56.3 million (previous year: CHF 46.0 million). The adjusted EBIT margin increased accordingly by 180 basis points to 8.5% (previous year: 6.7%). After the one-off costs for the transformation program announced were offset, EBIT amounted to CHF 33.2 million. The higher adjusted profitability is the result of systematic price and cost management and targeted optimization measures, in particular at the sites in North and South America.

To accelerate the planned growth in revenue and profitability, the Board of Directors and the Executive Committee have launched a comprehensive transformation program called «ForwardNow», as was announced in December 2024. This program will enable the company to exploit key synergies, become even more competitive and position itself better for the future. The potential improvements will be addressed over a period of three years (2025 to 2027) in four action areas: optimization of the international production network, strengthening of commercial excellence, streamlining of the product portfolio and a future-proof target operating model. The action areas will be broken down into individual initiatives, advanced within the company and brought together by a dedicated transformation team.

In parallel with the transformation program, Datwyler is continuing to invest systematically in innovation and growth projects and is pushing ahead with key activities in the areas of healthcare and the transformation to e-mobility as matters of high priority. The innovation projects are progressing according to plan. The company has put an industrial-scale pilot production line for electroactive polymers (EAPs) into operation. Initial EAP products are currently being evaluated by several customers for various applications. SoftPulse® soft dry electrodes for measuring and monitoring biosignals are in commercial use in a wide range of applications. Development projects with global innovation leaders in the area of smart, wearable devices confirm the high performance of Datwyler’s dry electrodes.

Based on the forecasted development of the relevant markets and the sustainable improvements resulting from the transformation program Datwyler expects annual organic revenue growth in the higher single-digit percentage range and an EBIT margin of 17% plus in the medium-term in a normal operating environment.

Datwyler also made further progress in terms of sustainability in the reporting year under review. By taking targeted measures, the company was able to increase the share of electricity from renewable sources from 38.3% in 2023 to 64.1%. As a result, the Scope 1 and 2 CO₂ emissions at Datwyler’s sites decreased by 32%. Water withdrawal by the company’s sites was also down, falling by 7.9% compared to previous year. By joining the Science Based Targets Initiative (SBTi), Datwyler has committed to working toward specific greenhouse gas reduction targets. In recognition of Datwyler’s sustainability performance, the internationally renowned rating agency EcoVadis awarded Datwyler the Platinum medal, its highest standard, for the first time in 2024. This places Datwyler in the top 1% of more than 150'000 rated companies from over 185 countries.

Since 1 February 2025, the Executive Committee has been strengthened by Michael Höller, who has taken over as Head of the Industrial Solutions business area. Previously, this area had been managed directly by CEO Volker Cwielong under a dual mandate. Michael Höller brings with him more than 30 years of experience in global leadership positions in production and quality management and holds a degree in industrial engineering.

As already communicated, Britt Hendriksen will be proposed for election as a new Director and representative of the public shareholders at the Annual General Meeting on 18 March 2025. She has extensive experience in the global healthcare industry, most recently as Group CFO of Unilabs. Previously, she held various global management positions at Novartis for more than 20 years. In response to the Board of Directors’ request, Chairman Paul Hälg has accepted to oversee and support the transformation program until the 2027 Annual General Meeting before stepping down from his role for age-related reasons.