Hilti starts year with a 5.4% rise in sales
16 May 2023
Construction tools manufacturer Hilti Group has published its latest financial results, revealing a 5.4% increase in sales for the first four months of 2023.
The Liechtenstein-based company brought in CHF2.14 billion (€2.2 billion) for the period, compared to CHF2.03 billion for the same period of 2022.
Jahangir Doongaji, Hilti’s CEO, said, “Interest rate hikes, continued inflation and geopolitical tensions still have a negative impact on the global construction market.
“However, we observe geographic differences with a negative sentiment in Europe, a mixed picture in the Americas and positive signals from Asia. We are adapting to this situation and our growth level for the first four months is in line with our expectations.”
Although describing growth in the Chinese market as “sluggish” and reporting a 14.3% drop in sales for its Eastern Europe/Middle East/Africa region, Hilti saw positive sales in Europe, the Americas and in Asia/Pacific. The regions brought in CHF1.11 billion (€1.4 billion), CHF610 million (€626 million) and CHF258 million (€265 million) respectively.
“The Swiss franc remained strong against the euro, US dollar and other currencies, resulting in -4.3 percentage points sales impact from January to April,” said Hilti.
While the company’s 2022 full year results saw profits decline by 13.7% - which it attributed to the rising cost of raw materials, components and transport, as well as the war in Ukraine and its own “increased investments into innovation” - its figures for the start of 2023 are in line with its forecasts.
In its 2022 full year financial report, the company predicted high single-digit sales growth in local currencies, saying that it was anticipating a similar return on sales level in Swiss francs.
It also said it expected growth in the construction market to be softer in 2023, due to “further interest rate hikes, ongoing geopolitical tensions and further appreciation of the Swiss franc”.