Bühler thrives despite global challenges, reports increase in profit

SWITZERLAND – Bühler, the renowned Swiss milling technology company, has defied the odds in a tumultuous global landscape, reporting a notable increase in profit for the fiscal year 2023. 

Despite facing myriad challenges, including fluctuating commodity prices and geopolitical tensions, Bühler’s commitment to innovation and adaptability has propelled its financial performance forward.

According to the company’s latest financial report, Bühler recorded a remarkable 16% surge in net profit, reaching CHF 179 million (US$202.1 million). While order intake experienced a slight decline of 3.8%, totaling CHF 3.2 (US$3.61) billion, turnover witnessed a modest 1% increase, amounting to CHF 3(US$3.38) billion.

Foreign exchange fluctuations played a significant role in shaping the company’s financial results. When assessed in local currencies, Bühler saw improvements across key metrics, with orders rising by 2% to CHF 3.3 (US$3.72) billion, turnover increasing by 7% to CHF 3.2 (US$3.61) billion, and earnings before income tax (EBIT) soaring by 17% to CHF 233 (US$262.80) million.

Speaking at a media conference call, Stefan Scheiber, CEO of Bühler, acknowledged the myriad challenges faced throughout the year. These challenges included volatile commodity markets, shifts in consumer interest toward plant proteins, and geopolitical tensions in regions such as Ukraine, Sudan, and Gaza. 

Despite these hurdles, Scheiber expressed satisfaction with the company’s performance, emphasizing Bühler’s resilience as a dependable partner amidst global uncertainties.

Maintaining a steadfast focus on innovation, Bühler continued to invest in research and development, allocating approximately 5% of its budget to R&D initiatives. The company successfully launched 50 new core products, which were well-received in the market and contributed to 10% of its turnover.

Food security emerged as a key driver within Bühler’s Grains & Food segment, with turnover in this segment experiencing a marginal decline of 3.1%. However, in local currencies, turnover registered a 2.2% increase, reflecting underlying market dynamics.

Mark Macus, CFO of Bühler, highlighted the divergent performance observed across different business areas within the Grains & Food segment. While businesses in China faced challenges, particularly in the feed sector, Bühler secured significant orders for grain handling infrastructure, underscoring the company’s pivotal role in supporting food security initiatives globally.

Bühler’s Milling Solutions segment witnessed robust order intake across key markets, signaling a resurgence in investment activity following the constraints imposed by the COVID-19 pandemic. The company secured projects worldwide, demonstrating its enduring global appeal and comprehensive portfolio of grain processing technologies.

Looking ahead, Bühler remains cautiously optimistic despite the prevailing economic uncertainties. With a robust order backlog of CHF 2 (US$2.26) billion providing a stable foundation, the company is well-positioned to navigate through dynamic market conditions and capitalize on emerging opportunities in 2024 and beyond.

As Bühler continues to innovate and adapt to evolving market dynamics, its steadfast commitment to excellence and customer-centric approach ensures its resilience in an ever-changing world.

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