The Wipf Group shows steady development
The economic scenario
The economic situation in Switzerland in the first half of our financial year can be described as somewhat subdued. Sectors such as retail and catering in particular saw little momentum in terms of growth. Demand from Asia was uneven, albeit with India standing out as a growth market.
Profit margins remained largely stable year on year. The weakening of the Swiss franc since the beginning of the year had a positive impact on exports. Nevertheless, pressure on margins remained and growth developed modestly, as economic and geopolitical uncertainty curbed customers’ willingness to invest. Our liquidity improved after reducing our inventory.
The Swiss National Bank lowered the key interest rate by 0.25 percentage points to 1.25 % due to ongoing low inflationary pressure. Retailers were nevertheless faced with subdued demand, as continued limited purchasing power dampened customers’ desire to buy.
Globally, the economy posted solid growth in the second half of the financial year 2023/2024, and it is expected to pick up further in the next few quarters. While inflation remained stable, it exceeded central bank targets in many places. Some central banks eased their monetary policies in view of the reduction in inflationary pressure, while others maintained a restrictive approach.
Review of the 2023/2024 financial year
Group revenue fell to CHF 157 million (previous year: CHF 182 million), due primarily to the sale of three subsidiary companies at the end of 2023. The Group’s EBITDA was particularly positive, despite the difficult economic circumstances. The annual result of the Wipf Group includes the positive effects from the sale of the three companies. Investments in fixed assets amounted to CHF 6.5 million (previous year: CHF 7.5 million) and were financed internally in full thanks to high cash flows from operating activities. The equity ratio increased again slightly. The head count declined due to the sales to 463 employees (previous year: 569).
A positive outlook
We expect exports to grow moderately due to weaker international demand. At the same time, the domestic economy is expected to keep growing solidly, given the positive environment. Overall, the economic situation in Switzerland is still stable. Prices have remained steady, while GDP growth for the current year is estimated at around 1 %. In the wake of a gradual recovery of the global economy, the Swiss National Bank forecasts growth of around 1.5 % for 2025. As before, private consumption is expected to support this, not least thanks to the favourable situation on the labour market and the fall in inflation.
The economic outlook for the Group is promising. We will continue to invest in different areas in order to fully exploit growth potential. These investments include launching new products and services, upgrading production facilities and taking other measures to improve sustainability and reduce CO2 emissions. These measures will enable us to boost our competitiveness and bring about sustainable value creation.
Further information on fiscal year 2023/2024 can be found in our Annual Report.