Rieter plans capital increase to fund Barmag takeover

(CONNECT) Rieter can look back on a challenging first half of 2025. As expected due to the low order volume, sales fell by 20 percent year on year to 336.2 million Swiss francs, according to a press release issued by the global textile machinery manufacturer based in Winterthur. The order backlog at the end of the first half of the year came in at roughly 510 million Swiss francs, reflecting a reduction of 130 million Swiss francs versus the end of June 2024.

In terms of operating income at the level of EBIT, Rieter was forced to contend with a loss of 17.3 million Swiss francs. In the first half of the year, revenue was reportedly below the operational break-even point, Rieter states. In this regard, the company also cited special effects related to the planned acquisition of the Barmag textile machinery business for synthetic fibers from Oerlikon, in addition to restructuring costs. The net result came in at a loss of 20.0 million Swiss francs at the end of the first half of the year, after the company posted a profit of 1.7 million Swiss francs for the first six months of 2024.

In terms of overhead costs, Rieter was “again able to save a substantial amount”, according to the press release. In specific terms, the costs here fell from 119.8 million Swiss francs in the first half of 2024 to 104.9 million Swiss francs in the half-year under review. Across the full year, the textile machinery manufacturer expects to record sales of 750-800 million Swiss francs together with an EBIT margin of 0-4 percent.

An extraordinary general meeting has been organized for September, when shareholders will vote on the capital increase to finance the Barmag takeover. Rieter explains that its two largest Rieter shareholders have already committed to taking part. Together, Peter Spuhler and Martin Haefner hold approximately 43 percent of the shares in Rieter. ce/hs