R&S Group publishes annual report 2024 with record profitability, solid cash conversion and confirmed growth path

Ad hoc announcement pursuant to Art. 53 LR

R&S Group publishes annual report 2024 with record profitability, solid cash conversion and confirmed growth path

15 April 2025 – R&S Group Holding AG (SIX: RSGN) today publishes its annual report 2024 with record highs for many performance metrics including net sales, operating margins, net profit and cash generation. The group refines its net sales guidance to a range of 10-13%, confirmed by a promising start into 2025. The published non-financial report outlines R&S Group’s progress and ambitions towards environmental, social and governance measures as contributors to long-term value creation. 

Financial results 2024
Preliminary key figures for the full-year 2024 were announced previously, such as net sales of CHF 282.6 million, including the first-time consolidation of Kyte Powertech sales from20 August 2024 onward, versus CHF 216.9 million in 2023. Combined order intake, a key indicator of future sales, reached the record level of CHF 305.5 million versus CHF 264.6 million in the previous year. Demand was particularly strong for power transformers and orders for oil-immersed distribution transformers remained at a high level, although some customers were waiting with orders for transformers from the new plant in Krzeczów, near Bochnia, Poland, due to a delay in the ramp up. By contrast, orders for cast-resin distribution transformers softened, mainly owing to a weak construction environment in Germany. To compensate for this, the group is focusing on promising applications such as data centers and harbor electrification. The order backlog at the end of 2024 reached a record CHF 278.0 million, versus CHF 185.7 million at year-end 2023.

EBIT amounted to a record CHF 62.7 million, representing a strong EBIT margin of 22.2%, compared with CHF 28.7 million in the previous year (13.2%). This is more than 200 basis points better than the guidance of around 20%, mainly thanks to higher gross margins resulting from continued growth and productivity measures. Also, net profit reached the best ever level of CHF 41.2 million, compared with CHF 11.6 million in the previous financial year.

Strong cash conversion
Cash flow from operations improved significantly, reflecting both higher earnings and successful working capital management. Free cash flow adjusted by the net cash impact from the Kyte Powertech acquisition amounted to CHF 44.9 million versus CHF 26.4 million in 2023, equivalent to a free cash flow margin of 15.9%. Cash conversion was thus strong, particularly in the second half of the financial year.

Guidance
Based on the robust market outlook, the strategic initiatives including the integration of Kyte Powertech and further capacity expansions with disciplined plant optimizations, R&S Group confirms its growth path. The guidance for net sales growth has been refined to a range of 10%-13% from previously around 12%, with an unchanged EBIT margin of around 20%. Free cash flow margin is projected to be in the range of 10%-12% of net sales due to capacity expansion plans in 2025 and 2026. As announced, the group foresees a dividend payout of CHF 0.50 per share for 2025 and 2026.

Markus Laesser, Group CEO, comments: «2024 has been a transformational year with significant operational and strategic achievements, where we delivered on our commitment to create value, achieve operational excellence and pursue profitable growth. Operationally, we focused on continued growth, profitability measures and cash conversion. Strategically, we expanded significantly with the acquisition of Kyte Powertech Ltd., strengthening our capabilities in new markets such as Ireland, the UK, France and the Netherlands and broadening our portfolio. We are pleased to report that the integration of Kyte Powertech into the R&S Group has been successfully completed by the end of March 2025. Going forward, we as a Group will continue to drive profitable growth.»

Dividend proposal
Based on the strong results, and as previously announced, the Board of Directors will propose to the Annual Meeting of Shareholders on 14 May 2025 the payment of a dividend of CHF 0.50 per share, in line with the company’s dividend policy.

Sustainability
The R&S Group's business model is inherently close to sustainability. The Group contributes to achieving ESG goals in areas such as reducing greenhouse gas emissions through its highly efficient products that enable the transition to renewable energies and make power supply more efficient. The Group is also working to improve its internal environmental performance in areas such as raw materials, energy consumption and its circular economy approach. At the same time, measures are being taken to create value for communities and to provide employees with development opportunities and a positive working environment. Finally, R&S Group is committed to an open dialogue with all stakeholders and to setting simple and transparent targets against which our progress can be measured. The commitment to sustainability is described in more detail in a separate report.

Consolidated Key Figures

^{1  Including Kyte Powertech (20 August until 31 December 2024).
2  Figures adjusted for divested plant in Czech Republic (SERW) and non-operating listing costs from initial business combination of 8.0 MCHF.
3  Adjusted for extraordinary Irish Employee Benefit Program related to Kyte Powertech acquisition of 2.5 MEUR.
4  Adjusted for subsequent tax payment in Italy of 3.7 MCHF and Irish Employee Benefit Program of 2.5 MEUR.
5  Adjusted for net cash outflow from Kyte Powertech acquisition of 217.4 MCHF (incl. transaction costs of 10.0 MCHF) and subsequent tax payment in Italy.
6  Basic Earnings per share computed by dividing Profit after tax by the weighted average number of shares outstanding  (31'403'842 shares in 2024).
7   Defined as cash and equivalents less (interest-bearing) short- and long-term liabilities. 
8   Including -165 MCHF financial debt of R&S Group Holding AG (syndicated loan for the acquisition of Kyte) and banks arrangement fee of 1.9 MCHF.
9  Proposal by the Board of Directors to the AGM of 14 May 2025.
10  Including 513 new FTE of Kyte Powertech per end of 2024. In 2023 without FTEs of divested plant in Czech Republic (SERW).}

Documentation
The annual report 2024 including the governance report, the compensation report and the full financial statements of R&S Group as well as the statutory statements of R&S Group Holding AG can be found here: https://ir.the-rsgroup.com/annual-semi-annual-reports/ 

The non-financial report 2024 is ready for download under this link  

A presentation for investors, analysts and financial media will take place at 10.00 CET at the METROPOL in Zurich today. The documentation is available here https://ir.the-rsgroup.com/presentations/

If you would like to participate in the physical event, please register with: investors@the-rsgroup.com or under phone +41 79 410 81 88. To follow the webcast of the event, join here.

Calendar 2025

Contact Investor and Media Relations
Doris Rudischhauser
Phone: +41 79 410 81 88
Email: investors@the-rsgroup.com
 

About R&S Group
R&S Group Holding AG’s (“R&S Group”, the “company”) operating headquarters are located in Sissach/BL, Switzerland. With eight manufacturing facilities in Switzerland, Italy, Poland, Ireland and the Middle East, the group serves its domestic and various European markets with single-phase, small and medium distribution and power transformers and other components under the brands of Rauscher & Stoecklin, ZREW, Tesar and Kyte. R&S Group’s customers are active in the utility, infrastructure and industrial sectors. The company has been successfully positioned to benefit from the accelerating demand for energy production and distribution, driven by the global trend towards decarbonization. R&S Group has been listed on SIX Swiss Exchange since 13 December 2023 under the ticker symbol RSGN. On 20 August 2024, the company acquired Kyte Powertech, a leading supplier of distribution transformer solutions based in Cavan, Ireland, thus significantly expanding geographic footprint to Ireland, the UK, Benelux and France, and adding complimentary products.

Further information about the R&S Group can be found at www.the-rsgroup.com.

Disclaimer
This communication expressly or implicitly contains certain forward-looking statements concerning R&S Group Holding AG and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of R&S Group Holding AG to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. R&S Group Holding AG is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.