UZWIL, SWITZERLAND — Despite a complex and volatile global landscape, Bühler saw profit increase in 2023 as it continued to bring new innovations to the market.

The company posted a 16% increase in net profit to CHF 179 million ($202.1 million) with order intake decreasing 3.8% to CHF 3.2 billion. Turnover increased 1% to CHF 3 billion.

The impact of foreign exchange rates was significant. In local currencies, orders improved 2% to CHF 3.3 billion, turnover by 7% to CHF 3.2 billion and earnings before income tax (EBIT) by 17% to CHF 233 million.

The year presented multiple challenges, including major movements in commodity prices, a cooling in the interest of plant proteins, a downturn in China’s economy and geopolitical concerns in Ukraine, Sudan and Gaza, said Stefan Scheiber, Bühler chief executive officer, in a media conference call on Feb. 13.

“We are satisfied with the outcome of 2023 and have proved again that we are a reliable partner in this dynamic world,” he said.

Bühler kept the innovation pace high, Scheiber said, with R&D spending against P&L very stable at around 5%. The company launched 50 new core products which were absorbed by the market successfully, he said. New products represented 10% of turnover.

“This dynamic of an organization creating innovations that are relevant and being absorbed by the markets is a future indication of the company,” Scheiber said.

Food security was a business driver in the company’s Grains & Food segment, Scheiber said. Turnover fell by 3.1% to CHF 2.204 billion, while order intake was down 0.7% to CHF 2.357 billion. In local currencies, turnover increased by 2.2% and order intake grew by 4.8%.

Developments differed significantly within the various business areas of the segment, said Mark Macus, chief financial officer.

Business was down in China, specifically in the feed business, but the company also secured several larger orders for ship unloaders as a result of governmental efforts to improve food security, Macus said.

Grain handling infrastructure for the commodities being produced and transported every year continues to be very important for the industry, Scheiber said. Bühler has a strong position in this area, he said.

Milling Solutions, the largest business area of Bühler, saw high order intake in all key markets, Scheiber said. During the COVID-19 pandemic, Bühler’s customers were focused on producing, not so much on building or remodeling.

“Now we see that some catch up is happening and some investments are happening, which is very positive,” he said, noting that Bühler secured projects from all over the world, including the United States, Saudi Arabia, Venezuela, Europe, Africa and southeast Asia.

Bühler has a broad portfolio of grain processing technologies meeting the requirements for different markets as well as a global support center, milling schools and training centers, Scheiber said.

“In recent months we have seen a trend toward new integrated plants that are being built in the US and southeast Asia,” he said. “It was important that we have the full solution and not only provide good processing but logistical systems and control systems.”

While the economic environment differed strongly across key markets, Bühler’s balanced geographical footprint allowed the company to benefit from market expansions and thus offset lower business volumes in other markets. The most notable developments were strong turnover growth in the Americas and significantly lower turnover volumes in China. Overall, Bühler’s regional share of turnover was as follows: Americas 29%, Europe 28%, Asia 27%, Middle East Africa & India 16%.

The economic climate in 2024 is still likely to be characterized by continued volatility. Nevertheless, Bühler said it is well positioned to navigate through dynamic times and to benefit from new opportunities that arise.