Exhibitions MCH Group makes a small profit in the first half of the year
The MCH Group made a small profit again in the first half of 2024 following a loss-making year in 2023. The exhibition and marketing company is in the process of stabilizing its business.
Sales rose by 8.3 percent year-on-year to 236.6 million Swiss francs in the first half of the year, as detailed in a press release issued on Tuesday. Operating profit EBITDA reached 15.3 million after 20.0 million. However, the result in the first half of 2023 included a positive one-off effect.
MCH also puts organic EBITDA growth for the reporting period at +0.9 million. "After several challenging years, the first significant progress has been made in the turnaround process," says the company. The aim is "long-term financial health as a foundation for sustainable corporate success and significant growth".
Measures for cost savings
The bottom line was a net profit of 3.6 million after 4.7 million in the previous year. A year ago, the result was positive thanks to a one-off effect of CHF 5.5 million, and it was the first time since the first half of 2018 that the company posted a profit.
In the first half of 2024, the Group invested in stabilizing its business activities. The 2030 strategy was defined together with the Board of Directors: In the current phase, the company is focusing on improving efficiency and making cost savings. Initial measures have been taken worldwide to improve the organization and processes.
Looking to the future, the focus in the second half of the year will be on achieving a break-even net result. The main objectives are to improve profitability and consolidate earnings. Sales growth is expected to be moderate, mainly due to seasonal fluctuations in the in-house exhibition business in Switzerland.
Successful "Art Basel" trade fairs expected
However, this should be offset by a strong performance in the USA and the Middle East in the Experience Marketing division and by successful "Art Basel" trade fairs in Paris and Miami Beach.
In 2023, MCH had suffered a net loss of CHF 14 million. Most recently, in March, with a view to the current 2024 financial year, it said that it would "do everything in its power to break even".
The MCH Group has been posting losses since 2017, as it had already been overwhelmed by the transformation process in the exhibition business before the coronavirus pandemic. It was plunged into a real crisis after the Swatch Group, the largest exhibitor at the Baselworld watch and jewelry fair, turned its back on the event. Although Baselworld is now history, MCH is now focusing on numerous other exhibitions - in particular the Art Basel art fair - and on experience marketing.
