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2024 was a positive year:

• Bobst North America has opened its new Competence Center Alpharetta in Atlanta. This state-of-the-art facility, dedicated to serving customers in the label and flexible packaging sectors, showcases cutting-edge flexo, digital, and All-in-One printing and service solutions.
• Acquisition of Packitoo – BOBST has acquired a majority stake in Packitoo, a software company that develops innovative web-based solutions for the packaging industry. This investment is part of our vision to digitize the end-to-end packaging value chain with software and data-based solutions enhancing productivity.
• At drupa we highlighted our company’s vision to shape the future of the packaging world, show casing our innovative technology novelties and BOBST Connect. BOBST welcomed more than 3 000 customers on a stand size of 1 853 square meters with only one concept machine. We received positive feedback from our customers who adopted our industry vision. More than 69 experts, 150 sales and other 400 people were fully trained on this vision deployment and new business cases.
• Inauguration of Bobst Korea – On 9 July, 2024 we celebrated the inauguration of the new facility in South Korea. Bobst Korea General Manager, Mr. Chae, welcomed Jean-Pascal Bobst, Alain Berger and Maxime Bobst and guided them on a tour of Bobst Korea’s newly built factory and offices in the southern city of Busan. With this move, Bobst Group strengthens its presence in Asia and offers customers a wider range of equipment and services in the corrugated board industry.
• Labelexpo Americas was a three-day show in early September, focusing on label printing and converting. We created a successful event with 90 participants, representing 50 companies, and without any machine on site. This intimate, dedicated event allowed us to create a closer interaction with our visitors and convey our message in a better way.
• Grand Opening of our new Competence Center in Firenze, ten months after flooding, with over 200 customers and tewnty journalists in attendance, this event on 8 to 10 October, 2024 marked a pivotal step forward in our commitment to innovation and excellence. Our new Competence Center in Firenze, with over 1 200 square meters of brand-new space, is now ready to showcase BOBST’s vision, creating a space where customers can experience our dedication firsthand.
• In October, we celebrated the 50th anniversary of Bobst Brazil. Since its establishment in 1974, Bobst Latinoamerica do Sul has been a cornerstone of our global operations, representing our first industrial venture outside Switzerland.

As the Group continues its transformation, leverage opportunities and optimize its performance, this year we decided to:

• Strengthen our China ambitions through a production localization approach under the moto “In China for China”. We are strengthening the synergies between our four production sites in terms of product development and supplier relationship. First results are positive.
• India development: India continues to be a strong growth market for us. Therefore, we are expanding our production facilities in India and reinforcing our current structure to manage and support this significant growth, focusing on Indian market as well as export.
• BOBST Engage is a program that aims to make our processes, systems and data more consistent, easy and modern, using cloud-based digital platforms, that will help BOBST create more value for our business end-to-end. It will develop and apply a new set of common business functions across the Group and the areas of Customer Relationship Management, equipment design, production and financial systems integration (CRM, PLM and ERP). BOBST Engage will also support our journey to cloud.
• From NMW to PL Label: Following the integration of Mouvent and Bobst Firenze in 2021, and today with more than 100 digital label machines around the globe serving our main clients in the industry, we are evolving to the next phase in our digital journey. To foster an organization of quality, excellence and efficiency, NMW will now continue its strategic journey as product line Label. Meanwhile narrow mid-web technology will be used for flexible materials and folding carton applications.
• Application Management: In 2024, BOBST introduced a new application management system to enhance its service offerings. This system provides consulting services on technologies, raw materials, processes, and business models, helping clients optimize their operations. This reflects our commitment to innovation and customer-centric solutions, driving efficiency and sustainability in the packaging industry. 
• Innovations, through new business model. BOBST sells productivity with:
  •    BOBST Connect an All-in-One digital platform that enhances packaging productivity by integrating data and digital services into a fully connected system. It will provide comprehensive insights and tools for managing and optimizing the entire production process.
  • NMW Linear Meter which refers to the length of material processed or printed in a linear meter, which is crucial for calculating production efficiency and costs.

The Group started 2024 with a 30% lower machine backlog than the year before. Order entries for the machine business were, as expected, lower than previous year in most of the months. December 2024 was strong but could not compensate the orders missing throughout the year. This has led to an overall decrease in total orders of 6% compared to the value achieved in previous year. Orders for the Business Unit Printing & Converting were 13% below the previous year with different trends by industry. Orders for the Business Unit Services & Performance increased by 4% compared to 2023. The backlog for Business Unit Printing & Converting is around 35% lower than at the end of 2023 and back at pre-Covid levels.

Consolidated sales for the full year 2024 decreased by CHF 69 million, or 3.5%, to CHF 1.891 billion. Adjusted for currency effects and acquisitions, organic sales reduced by CHF 23 million, or 1.2%, in 2024.

An improvement of CHF 6 million, or 0.3%, came from a change in scope of consolidation due to the acquisitions done in 2023 and 2024. The unfavorable evolution of exchange rates had a negative effect on sales of CHF 52 million, or 2.7%.
The operating result (EBIT) was CHF 156 million, or 8.2% of sales, compared to CHF 147 million, or 7.5% of sales in 2023. The Group reached for the reporting year its long term target of an operating result (EBIT) margin of at least 8%.

Business Unit Printing & Converting reached an operating result (EBIT) of CHF 53 million compared to CHF 42 million in 2023. Missing margin due to lower sales and higher costs due to drupa exhibition were compensated by good cost management and ongoing operational improvements. Insurance payments linked to the incidents incurred in 2023 had a positive impact on the Business Unit’s operating result (EBIT) of around CHF 12 million.  

Business Unit Services & Performance reached CHF 106 million operating result (EBIT) compared to CHF 108 million in the previous year. The sales increase had a positive impact on the Business Unit’s operating result (EBIT) but this was more than compensated by the cost of drupa exhibition and higher IT costs, linked to the preparation of the SAP Hana implementation. Insurance payments linked to the incidents incurred in 2023 had a positive impact on the Business Unit’s operating result (EBIT) of around CHF 5 million. The net result decreased to CHF 96 million compared to CHF 119 million in 2023.
The decrease in net result is mainly due to losses on foreign exchange hedges which had the opposite effect in 2023, and the sale of the participations in BHS and IVG. The income tax increased due to losses in entities, where no deferred tax assets are recognized in 2024, and an unfavourable profitability mix of the Group’s subsidiaries in different countries.

Net working capital increased from CHF 247 million in 2023 to CHF 359 million in the reporting year. A CHF 24 million reduction in inventories could not compensate for the significant reduction in customer down payments, due to the lower machine backlog. Cash inflow from operating activities increased to CHF 55 million, compared to CHF 45 million
in 2023. The cash position increased by CHF 35 million in the reporting year, resulting in a net debt position of CHF 126 million, compared to a net debt position of CHF 134 million in 2023.

Bobst Group has issued on 31 January, 2024 a CHF 200 million debenture bond. The proceeds were used to reimburse the CHF 135 million debenture bond maturing on 27 September, 2024, and for general corporate purposes. The equity ratio increased from 25.7% in the previous year to 28.8% in 2024. The improvement of the ratio is mainly due to the sale of the participation in BHS and IVG.

The return on capital employed (ROCE) decreased to 22.0% in the reporting year and remains above the Group’s target level of minimum 20%. The reduction compared to 24.9% in 2023 is mainly due to the increase in net working capital.

Dividend proposal and Annual General Meeting
The Group’s dividend policy recommends a payout of at least 50% of the net consolidated profit after tax. Based on the strong financial results the Board of Directors recommends to the Annual General Meeting of Shareholders to pay in 2025 a dividend of CHF 5 per share (CHF 5 dividend per share paid in 2024). 

The mandates of all the members of the Board of Directors become due for renewal for a one-year period. At the forthcoming Annual General Meeting of Shareholders on 3 April 2025, Alain Guttmann, Montserrat Peidro-Insa, Jürgen Brandt, Gian-Luca Bona and Marc Schuler will be proposed for re-election for a new period of one year. Thierry de Kalbermatten will not present himself for re-election, as he reached the age limit for Board members. Thierry de Kalbermatten was a representative of JBF Finance SA for more than twenty years. We thank him gratefully for his important contribution to the Board and to our company journey, especially in bringing to our Group his large business
experience, his professionalism and for his understanding of the industry challenges.

Domenico Iacovelli will be proposed for election. He is a Swiss national born in 1976. Domenico is a senior business leader with extensive experience in managing large organizations. Domenico has a proven track record of successful turnarounds and driving profitable growth. In 2000 he joined Induma Automation where he led several international projects, mainly in China, then moved to Bircher Process Control. In 2006 he joined Soutec AG, where he was rapidly promoted ending up in 2011 as CEO. The business was acquired by Andritz, with Domenico staying as Soutec CEO. In 2018 he was named CEO of the Schuler Group and in 2022 became a member of the Andritz Group Executive Committee as EVP for Business Area Metals and Group IT. Since April 2024 he is CEO of Bystronic. 

2025 outlook
The IMF forecasts 3.3% global growth in 2025 with inflation easing to 4.2%. However, rising protectionism and trade tensions threaten stability. Growth remains but high interest rates and tariffs could dampen consumer confidence.
The economic slowdown and the weak demand in China together with the property crisis weigh on consumer spending. Europe struggles with high borrowing costs and weak industry, impacting business and consumer sentiment.
The packaging market faces rising costs due to tariffs on raw materials like aluminum and plastics, increasing production expenses. Supply chain disruption may lead to higher prices for business and consumers. However, demand for sustainable packaging will continue to grow, driven by regulations and eco-conscious consumers, pushing companies to adopt recyclable and low-carbon alternatives despite economic uncertainties.

In 2025, BOBST’s outlook is characterized by resilience, a strong emphasis on customer satisfaction and a continued deployment of our company’s vision to shape the future of the packaging world. The company aims to enhance its digital presence through initiatives like BOBST Connect, an All-in-One digital platform designed to boost packaging
productivity by integrating more data and digital services.

Based on today’s evaluation of the overall business environment and prospects, the Group is expecting 2025 full year sales and operating result (EBIT) to be lower than the levels reached in 2024. The long-term objectives, with an operating result (EBIT) margin of at least 8%, and a return on capital employed (ROCE) of at least 20%, are maintained. The long-term objectives for the dividend distribution and the equity ratio are 30–35% for the equity ratio and minimum 50% of the net consolidated profit after tax for the distribution ratio.

The challenges ahead only strengthen our confidence and optimism! We firmly believe in the exceptional abilities and strengths of our more than 6 400 collaborators. We wish to express our heartfelt gratitude to them, as well as to our shareholders, customers, and partners who have consistently supported BOBST on its mid- and long-term journey.

We look forward to working closely with you in 2025. 

Alain Guttmann
Chairman of the Board

Jean-Pascal Bobst
Chief Executive Officer