INFICON: Profitable Growth in Demanding Environment

INFICON Holding AG (SIX Swiss Exchange: IFCN) reports 3.1% higher sales of USD 172.2 million for the third quarter of 2024 compared with the previous quarter. This is the second-best quarterly sales figure ever. In comparison with the same period of last year, sales picked up by 1.3%. With negligible currency effects and 0.2 percentage points from acquisitions, the organic increase was 1.1%. The gross profit rose 3.6% from USD 78.8 million to USD 81.6 million, yielding an improved gross profit margin of 47.4%. After higher research and development costs of USD 13.9 million (last year period: USD 12.3 million) and flat selling, general, and administrative costs of USD 32.8 million, INFICON achieved an operating profit of USD 34.9 million or 20.3% of sales – up from 19.9% a year ago. With USD 26.3 million, net income for the period equals last year’s figure and reached 15.3% of sales after 15.5% a year ago.

Cash Flow and Balance Sheet

In the third quarter 2024, INFICON generated a strong operating cash flow of USD 45.9 million, compared with USD 37.6 million in the third quarter 2023. This reflects the strong net income generation in combination with a clear focus on cash collections. Days sales outstanding fell from 52.6 days last year to 48.7 days. Working capital remained stable at USD 221.4 million despite a small increase in inventories. INFICON closed the quarter with a net cash position of USD 51.5 million. The equity ratio improved slightly from 64.0% at the end of June 2024 to 64.7% at the end of September 2024.

Developments in the target markets and world regions

INFICON supplies products and services to a wide range of global technology markets. With sales of USD 90.2 million and an increase of 27.1% over the same period of last year, INFICON continues its growth path in the Semi & Vacuum Coating market with record sales. This target market contributed 52.4% to Group sales, mainly due to the strong development is Asia. Quarter over quarter, sales grew by 7.4%. The overall outlook for this market remains positive, despite some international trade uncertainties and a slower recovery of the global semiconductor markets. The momentum here should accelerate in 2025. In contrast, sales to the General Vacuum market where INFICON addresses a broad range of industrial and research customers, fell in the yearly comparison by 29.2% to USD 37.6 million. This represents 21.9% of Group sales. A year ago, third quarter sales were at record level, driven by solid orders and the reduction of a significant order backlog after previous supply chain issues were solved.  This year's sales reflect a normalized backlog situation in a generally sluggish global macroeconomic environment, particularly in Europe and certain sectors such as the solar industry that are experiencing temporary slowdowns. However, quarter over quarter, incoming orders improved and sales picked up by 6.0% again in the third quarter; INFICON is therefore moderately positive for the further development. The Refrigeration, Air Conditioning & Automotive market reports lower sales volumes year-over-year (-11.5%) and quarter-over-quarter (-9.4%), following an exceptional fiscal 2023 featuring a sales increase of 30%, record-high third quarter sales, and a significant backlog reduction. Sales reached USD 32.9 million and accounted for 19.1% of Group sales. The demand from the automotive and battery industry is temporarily weaker, most notably so in Europe, following the outstanding growth in the last quarters; the business in Asia is developing quite positively in a difficult environment. The global air conditioning and refrigeration market was overall flat with growth in some select markets. INFICON's smallest target market, Security & Energy (6.7% of sales) benefitted from a strong order book. Sales reached a new quarterly record level and picked up by 31.6% to USD 11.4 million year-over-year or by 1.8% compared with the preceding second quarter. INFICON is confident for the next quarters for this market.

Outlook

INFICON is optimistic for the upcoming quarters. However, the Company is aware of the general macroeconomic dynamics, the geopolitical tensions, and most notably the mixed signals as to the extent and timing of the next cycle in the semiconductor business. INFICON expects a solid final quarter and is now forecasting full-year 2024 sales of USD 660 to 670 (previously 660 to 690) million and an operating profit margin of around 20%.

Presentation and Web Conference  

The presentation on the third quarter results is now available for download in the investor section of the INFICON website www.inficon.com at https://ir.inficon.com/financial-results-and-presentations/.

INFICON discusses the third quarter 2024 results in more detail today at 0930 a.m. CEST in an English-language web conference. Please access the Microsoft Teams Conference using the following link:  www.inficon.com/web-conference

Communication Calendar 2024/2025

The communication calendar of INFICON is continuously updated and available online in the Investors’ section of the INFICON website, https://ir.inficon.com/financial-calendar/.

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