Datwyler upbeat as healthcare gains offset auto dip

Altdorf, Switzerland – Datwyler Group has reported stable first-half results, with gains in healthcare and food & beverage segments offsetting weaker demand in the automotive industry.

The group posted sales of CHF 563.0 million (€604 million) in the first six months of the year, down 2.9% year-on-year due mainly to a significant appreciation of the Swiss franc.

On a currency-adjusted basis, sales rose 1.3% compared to the same period in 2024, the group announced 22 July.

Earnings (EBIT) increased to CHF 68.9 million, up from CHF 67.5 million in the prior-year period, despite negative currency effects, Datwyler said. The earnings margin improved to 12.2%, up from 11.8% a year ago.

Key drivers included the launch of “new, attractive” healthcare products and positive developments in the food & beverage segment, which largely offset softer automotive demand.

The company attributed the results to “operational leverage, an improved product mix, efficiency gains, and targeted cost reductions.”

In its healthcare division, Datwyler achieved currency-adjusted sales growth of 5.8%, reaching CHF 236.8 million – up from CHF 230.7 million in H1 2024.

“After a cautious start to the year, demand accelerated noticeably in the second quarter, signalling that customer destocking has largely been completed and the market is normalising,” the group said.

Several projects involving Datwyler’s NeoFlex plungers for prefilled syringes entered series production during the period, and component manufacturing for a “leading weight-loss medication (GLP-1)” also began as planned.

Segment earnings rose 12.6% to CHF 40.1 million, with the margin improving 150 basis points to 16.9%.

The growth, Datwyler said, reflected higher plant utilisation, an enhanced product mix, efficiency improvements, and “a more value-driven sales approach.”

In the industrial division, trade conflicts weighed on demand. Revenue fell to CHF 329.3 million from CHF 343.4 million, down 1.4% on a currency-adjusted basis.

“Ongoing trade and tariff conflicts created uncertainty and muted demand across various industrial markets," said CEO Volker Cwielong.

However, he added, Datwyler remains "well positioned", helped by its global production strategy.

The division also reported positive local sales of components for battery-electric vehicles in China while demand recovery in the energy sector “fell short of expectations.”

The food & beverage segment posted “solid growth,” supported by new supply agreements and increased capacity for coffee capsules.

On the business environment, Datwyler said its transformation programme ForwardNow, launched in late 2024, remained on track and was showing “strong progress.”

“Planned optimisation measures are taking effect, and we expect to achieve the targeted contribution for 2025,” said Cwielong.

The programme focuses on optimising the production network, enhancing commercial excellence, streamlining the portfolio, and building a “future-ready operating model.”

As part of the restructuring, Datwyler will close its Vandalia, Ohio, site by the end of September and consolidate production and distribution into two existing US facilities.

It also integrated its ‘sustainability & operational excellence’ function into existing structures.

From 1 June, the executive committee was reduced to five members, focusing on the healthcare and industrial divisions, finance, and technology & innovation.

Additionally, from 1 April, the mobility and connectors units were merged into a new transportation & electronics unit within the industrial division.

The reorganisation, Datwyler said, introduces "clearly defined regional sales responsibilities and a modular structure built around regions and global product lines."

Regional production sites now report directly to the division head, which Datwyler said would improve synergies across the value chain.

Looking ahead, the group expects “different trends” across its sales markets.

In the industrial segment, automotive and general industrial demand will continue to be shaped by global trade and tariff developments.

However, Datwyler said it remains well positioned to meet market needs due to its global footprint.

While the direct impact of trade tensions remains limited, prevailing uncertainty is dampening investment appetite in some sectors.

In healthcare, the company said it was “confident that the recovery and growth trends will continue in the second half of the year.”

“We expect that these factors will largely offset the usual seasonal slowdown in the second half, enabling continued improvements in both sales and profitability,” said Cwielong.