Orell Füssli Ltd: Orell Füssli significantly increases Revenue, EBIT and Net income in 2024

Ad hoc announcement pursuant to Art. 53 LR

Orell Füssli significantly increases Revenue, EBIT and Net income in 2024

• Revenue grows by 8.7%, EBIT increases by 24.5%
• Increase in net income by 19.6% to CHF 17.5 million.
• Successful implementation of strategic projects
• Board of Directors proposes to the AGM to increase the dividend to CHF 4.40 per share

Zurich, 14 March 2025 - Orell Füssli reported a very successful financial year in 2024 with growth in all areas and results exceeding its own expectations. The Group increased sales for the fourth year in succession to CHF 252.5 million (previous year CHF 232.2 million) and operating result (EBIT) to CHF 22.6 million (previous year CHF 18.1 million). The EBIT margin increased by 1.1 percentage points to 8.9%. Net income increased by 19.6% to CHF 17.5 million (previous year CHF 14.6 million). Orell Füssli has a very sound balance sheet; the equity ratio at the end of the year was 73.8% (previous year 74.0%).

The implementation of the growth strategy in the fields of security and education is developing very well also in the second year after its launch and suggests that the growth targets set for the strategy period until 2028 will be achieved. Organic sales growth in 2024 was well above the announced growth target of 4-6% and profitability increased further despite substantial investments in the expansion of the digital business. The strategic EBIT margin of 8% planned for 2028 has already been achieved.

Security printing
The Security Printing Division significantly increased its revenue to CHF 86.4 million in 2024 (previous year: CHF 77.2 million), which was higher than forecasted. Order intake was high due to various new customers. The very good order situation will keep the company busy well into 2025. The operating result (EBIT) improved to CHF 12.9 million (previous year: CHF 10.6 million) thanks to higher sales and increased operating efficiency. In addition to the good order book, the favourable product mix also contributed to the good result.

Demand for banknotes is rising steadily worldwide, particularly in Latin America, Africa and parts of Asia, but also the volume of banknotes in the western world is continuing to grow moderately. Security Printing acquired various new international customers last year, including two additional central banks as new anchor customers with multi-year contracts. The division fostered its position as an innovation leader and presented various new products at international trade conferences.

Industrial Systems (Zeiser)
The Industrial Systems division recorded very good capacity utilisation in 2024 and increased revenue to CHF 24.8 million (previous year: CHF 21.6 million). Higher sales and efficiency gains in production offset the higher personnel and operating costs. At CHF 3.5 million, the operating result (EBIT) was at the previous year's level (previous year CHF 3.6 million).

Zeiser's business in the field of serialisation of banknotes and passports is gaining momentum thanks to the acquisition of several new customers. Business with track & trace systems also increased compared to the previous year. In the area of track & trace solutions, several reference systems were delivered to passport manufacturers and the commissioning of the first track & trace system for banknote printing at Orell Füssli Security Printing is planned for 2025. In addition, the first system with laser technology for perforating banknotes manufactured entirely by the Orell Füssli Group was successfully commissioned at the end of the year.

For 2025, the division expects a further increase in business and a positive revenue trend.

Book Retailing
Orell Füssli Thalia AG was able to continue its growth path in 2024. Revenue increased by 5.8% to CHF 248.6 million (previous year CHF 235.0 million). Proportionately consolidated revenue of the Book Retailing division improved to CHF 124.3 million (previous year CHF 117.5 million). The operating result (EBIT) totalled CHF 9.3 million (previous year CHF 8.0 million).

In a challenging environment, Orell Füssli Thalia further expanded its market leadership in Swiss book retailing in 2024. The division opened a total of six new bookstores in high-frequency locations in 2024, at railway stations in Chur, Aarau, Winterthur and Zug, in the Letzipark shopping mall in Zurich and in the lively shopping district of Uster. In addition, and as part of succession solutions, another Buchparadies branch in the Mall of Switzerland in Ebikon and the Rapunzel bookshop at the railway station in Liestal were taken over. The e-commerce business increased significantly compared to the previous year, and the sales with business customers of Delivros Orell Füssli AG also recorded further growth.

Further shop openings are planned for 2025. The expansion of the store network will lead to further revenue growth.

Publishers
The Orell Füssli publishing houses for educational media, legal media and children's books have developed into one of Switzerland's leading suppliers of teaching and learning media. This is also a consequence of the successful integration of the hep Verlag, which exceeded its growth targets. Both revenue and EBIT of the publishing houses increased compared to the previous year. All publishing programs launched numerous new publications and concluded important cooperation agreements. Conferences on specific topics were successfully offered for the first time, organised by hep the Verlag and the legal media team. The foundations and initiatives for further growth of the publishing houses in 2025 have been laid. Martina Barth, Managing Director of Orell Füssli Publishers, was promoted to the Executive Board of the Orell Füssli Group with effect from 1 January 2025 in order to take even better account of the strategic importance of the publishing companies.

Digital Credentials
Procivis is establishing itself as a national and international provider of software and solutions for electronic identities and verifiable digital credentials. The Procivis One software, particularly developed for these applications, was successfully introduced in 2024. In the past financial year, Procivis won its first important reference orders for the Procivis One software, including from the city of Zug and the US Department of Homeland Security (DHS). The focus in 2025 will be on marketing the Procivis One software in Switzerland and the EU, where the development of secure, standardised digital identities and proofs of identity will gain considerable momentum with the adoption of the Swiss E-ID Act (BGEID) and the introduction of eIDAS 2.0.

Dividend
In view of the good result, the Board of Directors proposes to the 135^th Annual General Meeting on  13 May 2025 to increase the dividend from CHF 3.90 to CHF 4.40 per Orell Füssli share. The proposal is in line with Orell Füssli's long-term dividend policy, which foresees to distribute 60 - 80% of the net income attributable to shareholders. The dividend payment will be made following approval by shareholders at the Annual General Meeting.

Outlook 2025
The outlook for the 2025 financial year is good. Orell Füssli expects further growth in revenue at least at a level of in the targeted growth corridor with corresponding EBIT. The 2028 growth strategy will be systematically pursued. Due to seasonal business in book retailing and at publishers, the second half of the year is expected to be somewhat stronger than the first.

Key figures Orell Füssli Group in CHF million

Annual Report 2024
The 2024 Annual Report is available on our website at https://orellfuessli.com/en/financial-reports-presentations. A print copy can be requested by emailing investors@orellfuessli.com.

Agenda
Annual General Meeting 2025                13 May 2025
Publication Half-Year Results 2025         25 July 2025

Contact us
Orell Füssli Ltd
Phone +41 44 466 72 94
media@orellfuessli.com