Hilti reports sales increase despite “challenging year”

Photo: Hilti

Hilti Group has reported a 2.7% growth in sales in 2023 to CHF 6.5 billion (€6.7 billion) and a 5.3% increase in operating profit at €770 million.

Changes in local currencies were up by 9.1% for the year, despite what the company describes as “economic and geopolitical uncertainties.” Hilti said a 6.3% negative currency effect was brought on by the appreciation of the Swiss franc.

Its core market in Europe, which accounted for CHF 3.3 billion (€3.4 billion) in sales, saw an 8.7% growth in local currencies, primarily driven by “strong contribution from Southern Europe” Hilti said.

As a whole, the Asia/Pacific saw the biggest increase in sales at 13.8% in local currency, while China noted a “slow recovery from COVID-19 lockdowns.” Meanwhile, its Eastern Europe/Middle East/Africa segment increased by 3.1% despite the impact of the conflict in Ukraine.

It was also a positive story for the Americas region, its second biggest market, which reported a 9.1% increase at €1.87 billion.

Hilti said the launch of its cordless range Nuron in 2022 was an “important growth factor” coupled with the introduction of 30 new tools to the market.

Meanwhile, the company increased research and development spend in the year by 3.9% to CHF 454 million (€471 million) when compared with 2022 and said it will “continuously invest in driving innovation in both hardware and software solutions and building up its market reach resources.”

It also acquired 4PS Group in 2023, a Netherlands-based provider and developer of business management solutions for the construction industry. 

Sahangir Doongaji, CEO, Hilti, said, “2023 was a successful year for the Hilti Group. We achieved strong growth in local currencies and increased our operating result, despite the challenging economic environment, the strong Swiss franc and the continued high level of investment. As we enter 2024, we are confident that we can continue to grow faster than the market.”

As for the year ahead, Hilti forecasts “mid-single-digit sales growth in local currencies and a similar Return on Sales (ROS) level in Swiss francs compared to 2023.” It said construction market forecasts indicate further softening with negative real growth in several regions.

It also predicts further appreciation of the Swiss franc and another year of significantly negative currency impacts as a result of geopolitical tensions and the volatility in the financial markets.