Belimo Improves Momentum and Drives Sustainable Growth

Belimo is a global market leader in the development, production, and sale of field devices for the energy-efficient control of heating, ventilation, and air conditioning (HVAC) systems. Belimo's core business focuses on damper actuators, control valves, and sensors and meters. In 2023, the company reported total sales of CHF 859 million and employed over 2,300 people across its various locations. Information about Belimo and its product range is available at www.belimo.com. Shares of BELIMO Holding AG have been traded on the Swiss stock exchange SIX since 1995 (BEAN).

Visit Belimo Switzerland - the manufacturer of electric control valves and damper actuators

PGTECH is the authorized representative distributor for Belimo in Vietnam, supplying Belimo's damper actuators, control valves, and sensor solutions. With nearly a decade of partnership with the Belimo brand, we have continuously risen to become the number one distributor of Belimo solutions in Vietnam. Each year, PGTECH's revenue has grown by tens or even hundreds of percent.

In this news report, we would like to provide the market with the latest information on Belimo, including a positive report on its business performance in the first half of 2024. We invite you to explore the detailed analysis below.

Belimo's H1 2024 Net Sales Results by Region

The Belimo Group has achieved positive business results in line with its growth strategy despite complex economic conditions.

In the first half of 2024, Belimo achieved net sales growth of 9.7% on a local currency basis compared to the first half of 2023. This was supported by positive trends such as energy-saving measures in existing buildings and the development of data centers.

In Swiss francs (CHF), net sales increased by 5.6% to CHF 473.5 million, supported by the return of volume growth, as well as positive contributions from the product mix and pricing. With this, the company's solid organic growth trajectory continued in 2024 despite ongoing economic challenges in several major countries and vertical markets.

Earnings Before Interest and Taxes (EBIT) increased to CHF 93.0 million in the first half of 2024 (H1 2023: CHF 84.7 million), resulting in an EBIT margin of 19.6% (H1 2023: 18.9%), despite additional investments to support the company's future expansion.

Belimo achieved a net income of CHF 77.2 million (H1 2023: CHF 65.0 million) and earnings per share of CHF 6.28 (H1 2023: CHF 5.29).

The Group generated a free cash flow of CHF 69.8 million (H1 2023: CHF 79.6 million). In the previous year, free cash flow included the divestment of term deposits of CHF 25.0 million. On an equivalent basis, free cash flow increased by 27.8% year-over-year. Net liquidity at the end of June 2024 was CHF 57.6 million (June 2023: CHF 48.0 million), and the equity ratio was 75.3%.

Supported by strong cash flow, Belimo will continue to execute its capital investment plans to support further growth. The Group's commitments for capital expenditures on property, plant, and equipment over the next few years amount to CHF 66.5 million (December 31, 2023: CHF 24.5 million), of which CHF 36.3 million (2023: CHF 11.9 million) relates to expansion projects for facilities in EMEA and Asia-Pacific.

EMEA – Europe, Middle East, and Africa

With sales up 9.3% in the first half of 2023, and facing a strong base effect and a challenging construction environment in several countries and regions where Belimo holds a significant market share in its EMEA revenue—namely Germany, Switzerland, Austria, and the Nordic countries—Belimo demonstrated remarkable resilience in the EMEA region.

This reflects the strength of Belimo's business model and the Group's growth approach. The EMEA region ended the first half of 2024 with net sales of CHF 199.6 million, corresponding to a 2.0% increase on a local currency basis (a 1.1% decrease in Swiss francs).

From a vertical market perspective, data centers have reaffirmed Belimo's success across the EMEA region. In this market, Belimo plays a leading role in providing field devices that help manage server ambient temperatures and enhance energy efficiency.

The Americas

In the Americas market region, Belimo recorded net sales of CHF 219.2 million in the first half of 2024, corresponding to a growth of 17.6% on a local currency basis (13.3% in Swiss francs).

Belimo remains strategically well-positioned to capitalize on the strong general economic recovery and a favorable underlying construction environment. The positive performance is broad-based across most sectors in which Belimo operates.

Strong demand for data center-related products or services remains high and stable, boosting sales in key channels such as building contractors and Original Equipment Manufacturers (OEMs). The trend of reshoring continues, and Belimo is benefiting from subsequent investments in large-scale projects in the semiconductor and electric vehicle industries.

Belimo's traditional verticals like government buildings, schools, universities, and hospitals also performed well. Demand for office buildings remains low, although there are signs of potential future recovery driven by the need to repurpose unused floor space.

Asia-Pacific

The Asia-Pacific market region reported sales of CHF 54.7 million in the first half of 2024, corresponding to a 9.9% increase on a local currency basis (3.0% in Swiss francs).

After two years of low investment and project budget cuts, the Chinese market has shown initial signs of recovery. Belimo's business developed positively in the first half of 2024. Belimo maintained a high growth rate in India from 2023 through the first half of 2024.

In East Asia, the new construction market remains relatively stable, although high building material costs due to local currency depreciation against the USD have hindered momentum in some countries.

Belimo's focus on high-growth verticals such as data centers, electronics and semiconductor manufacturing, and energy storage applications contributed to the solid performance.

Additionally, infrastructure projects like airport and subway network expansions also provided favorable support. Renovation opportunities are becoming an increasingly important business driver for the region, due to rising energy costs and stricter regulations on energy savings in buildings.

An overview of Belimo's sensor product range and its key technical features

Belimo's H1 2024 Net Sales Results by Business Segment

Regarding the company's business segments, all of them confirmed net sales growth. The ongoing market shift to electronic pressure-independent solutions, where Belimo is a market leader, contributed to a strong 11.9% revenue growth on a local currency basis in the control valve category year-over-year.

Belimo's sales growth in damper actuators accelerated to 5.8%, up from the 1.1% year-over-year increase recorded for the full year 2023. Meanwhile, sensors and meters continued to gain traction, maintaining high growth momentum across all regions.

Economic Outlook

Belimo is optimistic that demand in all three regions will continue to develop positively throughout the second half of 2024. While demand for new buildings remains constrained in some areas, the company's strategic initiatives focused on retrofitting existing buildings and tapping into the growing market segment of data centers have proven successful. These initiatives are supporting strong demand and driving positive results.

Based on its strong sales performance in the first half of the year, Belimo is raising its full-year outlook. Previously set at the lower end of its long-term growth corridor, the company now expects net sales growth on a local currency basis to slightly exceed this range and surpass the long-term average growth rate of 9% on a local currency basis.

Belimo has achieved an average organic sales growth of 9% on a local currency basis over the past 20 years (2003-2023) as well as over the past five years (2018-2023). With a sequentially decreasing basis for comparison in the second half of the year, year-on-year sales growth is expected to accelerate in the second half of 2024. On an absolute basis, the Group expects a similar sales result for both halves of 2024.

This continued solid revenue development in the second half of 2024 is likely to partially offset some of the company's incremental investments in growth initiatives. As experienced in previous years, USD exchange rate fluctuations can impact Belimo's sales and EBIT margin.

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Conclusion

Belimo remains a market leader in energy-efficient HVAC devices, with strong growth prospects. Urbanization, energy efficiency, and improved indoor air quality are driving demand for Belimo's products, supporting growth that outpaces GDP rates. The Group will continue its long-term strategy by investing in strategic initiatives and capacity expansion. This growth strategy, supported by Belimo's values and actively managed company culture, results in high employee engagement, which in turn fosters customer loyalty. PGTECH is the official representative for Belimo Switzerland, on behalf of Belimo Vietnam, distributing, supplying, and consulting on Belimo valve, sensor, and flow meter solutions for the Vietnamese market.

PGTECH GROUP LIMITED – Authorized Distributor of HVAC System Products in Vietnam and Regional Markets

Copyright © – This article is the property of PGTECH Vietnam

News Editorial Board: PGTECH

Editor: Mai Phuong

PGTECH GROUP LIMITED

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