Datwyler reports pressure on 2022 earnings margins

ALTDORF, Switzerland—Datwyler Group has reported pressure on its earnings margins in 2022, due to the sharp rise in input costs and a temporary closure of its subsidiary in Ukraine.

The Swiss group reported a 7-percent year-on-year decline in operating results (EBIT) to $156 million, on 21-percent higher sales of $1.1 billion.

EBIT margin fell to 13 percent for the year, down from a level of 16.9 percent reported in 2021.

In a Feb. 9 statement, Datwyler said the increased revenues reflected its acquisitions of QSR in the U.S. and Xinhui in China, as well as the implementation of price increases.

The earnings decline was linked to the delayed impact of price increases, restructuring measures and the temporary closure of its Ukrainian subsidiary.

Commenting on Datwyler's performance, CEO Dirk Lambrecht said the group had "coped well" amid all the challenges of the past year.

The Altdorf-based group, he noted, had completed the takeovers of QSR and Xinhui and expanded its Indian health care production site during the year.

And having made "promising progress" in a range innovation projects, Lambrecht said Datwyler was "in a strong strategic position."

During 2022, the group's health care solutions business area increased operating results by 1.6 percent to $111 million, on 11.5-percent higher sales of $544 million.

Datwyler said revenue from components for COVID-19 vaccines delivery declined "as expected," with an accelerating trend toward the year-end.

The health care unit was able to pass the "significantly increased costs" for input factors onto its customers over the course of the reporting year.

Datwyler's industrial solutions business area, on the other hand, saw operating results fall 23 percent to $45 million, on 30.2-percent higher sales of $666.2 million.

While acquisitions helped to drive up revenue, Datwyler said the "significantly higher input costs" and the delayed impact of price increases impacted the unit's operating result.