Metall Zug Group – result for the 2024 financial year

• Successful start of joint venture SteelcoBelimed with positive net result in the first year; transaction led to gain of CHF 66.6 million
• Haag-Streit product offensive launched with the introduction of the new Metis surgical microscope
• Strategic focus on ophthalmology supported by the proposal to elect Sandrine Zweifel, Deputy Head of the Ophthalmology Clinic at the University Hospital of Zurich, as new member of the Board of Directors
• Net sales of CHF 283.4 million (2023: CHF 494.7 million); divestment effect Belimed CHF -166.4 million; negative FX effect -0.8%; organic decrease -8.3%
• EBIT CHF 58.0 million (2023: CHF 30.1 million), including gain from the combination of Belimed with Steelco of CHF 66.6 million and proportional net result from strategic investments of CHF 3.1 million (2023: CHF 17.0 million)
• Dividend proposal: CHF 2.00 per type A registered share and CHF 20.00 per type B registered share

Metall Zug Group

The Metall Zug Group achieved a significant milestone in its strategic transformation with the successful completion of the joint venture with Miele in June 2024, allowing the newly formed SteelcoBelimed to commence operations. SteelcoBelimed is the number three provider of washers and sterilizers in the global market and targets an EBIT margin of 10% in the medium term. Metall Zug will remain invested in the combined company and holds a 33% stake.

“At Haag-Streit, we are seeing the first promising results of our investments in new products and innovations.” Matthias Rey, CEO of Metall Zug AG

At Haag-Streit, the systematically increased investments in R&D in recent years bear fruits and allowed Haag-Streit to successfully launch two new products in 2024 – the IM 910 – 3D imaging module and the new high-quality surgical microscope Metis. Metis will enable Haag-Streit to remain a strong player in ophthalmic surgery. As a result of the ongoing investments in innovation, Haag-Streit will be introducing several new technologies and products to the market in the coming months and years. To support the strategic focus of Metall Zug on ophthalmology, the election of Sandrine Zweifel as an additional member of the Board of Directors will be proposed to the Annual General Meeting of May 9, 2025. Sandrine Zweifel is Deputy Director of the Ophthalmology Clinic at the University Hospital of Zurich, Switzerland. In addition to her research activities in the field of diagnostic imaging, she is also clinically active as a retina specialist.

Metall Zug Group reported net sales of CHF 283.4 million in the 2024 financial year  (2023: CHF 494.7 million). The deconsolidation of Belimed Infection Control and Belimed Life Science, completed on June 7, 2024, led to an effect on sales of CHF -166.4 million, while the decrease in organic sales was driven by a weaker performance in the Medical Devices and Infection Control Business Units. EBIT (including the proportional net result from the strategic investments) rose to CHF 58.0 million (2023: CHF 30.1 million), which was significantly influenced by the gain of CHF 66.6 million from the combination of Belimed with Steelco. This was offset by lower operating results at the operational companies and the lower pro-rata net result from strategic investments, which were affected by customers' declining willingness to invest and the generally challenging global economic environment in 2024. Net income amounted to CHF 52.8 million (2023: CHF 26.1 million) and the operating cash flow reached CHF 2.8 million (2023: CHF 9.5 million). The equity ratio increased to 76.8% (December 31, 2023: 75.5%).

Strategy to unlock unique portfolio value on track

The Metall Zug Group's strategy to unlock the value of its portfolio is being consistently pursued through the development of Haag-Streit as a leading player in ophthalmic diagnostics and the development of its real estate portfolio in Zug, Switzerland, with the Tech Cluster Zug. The Group will additionally continue to maintain strategic anchor investments in Swiss industrial small cap companies, supporting them in realizing their full potential as market leaders. Despite the cyclically induced reduction of the stock prices of V-ZUG and Komax, Metall Zug is confident of the long-term growth and value enhancement potential of both companies.

Business Unit Medical Devices – Haag-Streit Group

Haag-Streit is an international medtech company that develops, produces and distributes innovative devices and solutions for ophthalmic diagnostics, microsurgery and the training of eye care specialists.

The declining sales development reflects a general investment restraint in Haag-Streit's core markets. The announcement and market launch of the new innovative surgical microscope Metis briefly dampened the demand for the previous model – this is an expected effect in the course of the product changeover, which will reverse with the successful establishment of the new model. In the area of training systems (simulation), the exceptionally strong previous year led to a high comparative base, so that despite intensive marketing efforts, a decline in demand was recorded.

At the same time, Haag-Streit has consistently adhered to its long-term strategic goals. The EBIT margin before investments in R&D decreased from 22.6 % to 17.0 %, influenced by the decline in sales, the changes in the product mix and despite targeted efficiency measures. Nevertheless, investments in R&D were deliberately increased further to CHF 27.3 million (2023: CHF 25.1 million). These investments underline the commitment to product innovation and expansion to secure future growth.

Although these strategic investments, in combination with current market conditions, have led to a reduced EBIT, Metall Zug is confident that this has laid the basis for an above-average performance in a recovering market environment. Metall Zug considers the current phase as an investment into future competitiveness and is confident that these strategic decisions will strengthen the long-term goals.

Business Unit Technologycluster & Infrastructure

The Business Unit is responsible for the industrial development of the site in Zug North, together with the establishment of Tech Cluster Zug (TCZ) and other infrastructure projects. The aim of the multi-generational project is to create a viable and lively part of the city of Zug.

Sales in prior year included CHF 19.6 million from the sale of technical systems to a related party, which had an EBIT impact of CHF 2.2 million. Excluding this effect EBIT remained on previous year’s level.

The development of real estate projects, the site network and infrastructure are progressing according to plan and the Business Unit invested CHF 25.2 million (2023: CHF 18.5 million) in the current projects. The SHL-Südtor project, new headquarters and production site for SHL-Medical, is advancing well, with the foundation stone laid in May 2024. The development plan for Project "Pi", an 80-meter-tall, wooden high-rise building, which will primarily offer affordable housing, was unanimously approved by the Zug City Council in its second reading in September 2024. On February 9, 2025, the electorate of the city of Zug voted for the development plan in a referendum with 70.8% of the votes. For project CreaTower I, the new office building for VZ Depository Bank, the application for the building permit was submitted.

Investments & Corporate

The reporting segment Investments & Corporate includes Metall Zug AG, Gehrig Group AG, Belimed Life Science (until June 7, 2024) as well as the strategic investments in V-ZUG (30%), Komax (25%) and SteelcoBelimed (33%).

Sales are below prior year as a result of the deconsolidation of Belimed Life Science as of June 7, 2024. The significant increase in EBIT compared to prior year is mainly due to the gain from the combination of Belimed with Steelco of CHF 66.6 million. Proportional net result of CHF 3.1 million (2023: CHF 17.0 million) from the strategic investments is included in EBIT and consists of the following amounts:

*including prior year adjustments

Gehrig Group is a leading supplier of dishwashers, thermal cooking equipment and cleaning agents as well as related services for the catering and hotel sectors in Switzerland. In 2024, Gehrig Group faced challenging market conditions, with pressure in the Swiss catering industry and cost-cutting measures in the healthcare sector. Sales declined to CHF 33.7 million (2023: CHF 35.4 million). Additional costs in connection with the launch of the new “Ariane” product line, the discontinuation of the “Coffee” division and investments in digitalization projects led to a negative EBIT. One of the highlights of 2024 was the launch of the new "Ariane" dishwasher range, which provides more efficient use of fresh water and detergents. Additionally, an expanded rental model was introduced, supporting the circular economy.

Strategically, Gehrig Group aims to strengthen its service excellence, operational efficiency, and position as the Swiss service market leader. The company is pursuing strategic refocusing and digitalization initiatives in order to achieve sustainable profitability.

Sustainability / ESG

Since its implementation, Metall Zug has invested approximately CHF 5.4 million in the internal Greenhouse Gas Fund (GHG), following a strong commitment to sustainability. As of the end of 2024, the fund amounted to around CHF 3.0 million, of which approximately CHF 2.0 million is earmarked for the support of Group-wide sustainability projects already committed to, focusing on advancing the circular economy, energy efficiency, and CO₂ reduction. All related initiatives are progressing well, and making a positive impact. The focus lays on circular economy projects which will continue to be a cornerstone of the reduction strategy. In 2024, the Metall Zug Group companies managed to reduce their CO₂ footprint by 14% respectively 461 tons in total (scope 1 & 2). Metall Zug now shows a CO₂ reduction path in which the Group will reduce its footprint by 25% by 2030.

Proposal for Dividend Distribution and Contribution to the Greenhouse Gas Fund

The Board of Directors will propose to the General Meeting of Shareholders on May 9, 2025, a cash dividend – equal to previous year – in the amount of CHF 2.00 gross per type A registered share and CHF 20.00 gross per type B registered share. In addition, the Board of Directors will propose the payment of CHF 450’000 (corresponding to 5% of the proposed dividend distribution) into the Greenhouse Gas Fund – to be charged to the 2025 income statement – for additional innovative projects as part of the sustainability strategy.

Outlook

It is becoming apparent that the market restraint will continue, and the political situation will remain tense in 2025. These uncertainties are causing very limited visibility of future developments, which is why it is not possible to provide a detailed outlook for 2025 at present.

Despite these challenges, Metall Zug is confident of the medium- and long-term growth potential of its Business Units and investments. The company is continuously investing in innovations and ensuring that all areas are strategically well positioned to make optimal use of the next economic upturn.

Key Figures Metall Zug Group

Any currency, divestment and acquisition effects mentioned in this announcement as well as other one-off effects are described in detail in the annual report.