Belimo Holding, the Swiss heating, ventilation, and air-conditioning company, has announced an increase in net profit and revenue for the first half of the year. Despite a potential slowdown in the second half, the company remains optimistic about its revenue growth for 2023.
Belimo Holding’s shares experienced a surge on Monday following the positive financial report. At 0938 GMT, shares were up 5.3% at CHF455.40, with a high of CHF456.60 earlier in the session.
Strong Financial Performance
The company reported a net profit of approximately 65 million Swiss francs ($75.2 million) for the first half, up from CHF61.3 million in the same period last year. Operating income also saw an increase, reaching CHF84.7 million compared to CHF76.7 million previously. Sales rose to CHF448.4 million, surpassing the CHF416.4 million achieved in the previous year.
Belimo performed exceptionally well in the Americas, while facing challenges in China, where it did not reach pre-pandemic levels. The company mentioned price adjustments to offset higher material costs, which have continued to impact Belimo due to its long supply chain.
Despite an estimated slowdown in the next six months compared to the previous year, Belimo expects a revenue growth rate around its five-year average for 2023. However, this may affect its operating margin. The uncertain economic environment could also impact the nonresidential business market, although refurbishment projects are likely to gain momentum due to potentially weakened new construction business as a result of higher interest rates.
Belimo Holding is confident in its ability to navigate these challenges and maintain a steady growth trajectory.