1.1Segment Reporting / Revenue Recognition
Changes in Segment Reporting
As of January 2024, the accounting and reporting of intragroup transactions has been changed. Intercompany relationships within the reportable operating segment "Shared Services" are now fully consolidated within the segment. Comparative figures have been re-presented accordingly.
Segment Information
The following tables present revenue and profit information for the Group’s operating segments, investments, and information on the segment assets for the years ended December 31, 2024 and 2023:
in CHF 1 000 | EMEA | Americas | Asia Pacific | Shared Services | Elimination | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | ||||||||||||
Income statement | ||||||||||||
Net sales – Third parties | 389 731 | 433 976 | 120 153 | - | - | 943 860 | ||||||
Operating expenses | -63 863 | -57 326 | -20 268 | -223 633 | -4 | -365 095 | ||||||
Other operating income | 648 | - | 256 | 1 482 | - | 2 386 | ||||||
Depreciation and amortization | -5 220 | -5 670 | -2 247 | -23 320 | - | -36 457 | ||||||
Segment profit | 321 296 | 370 980 | 97 893 | -245 471 | -4 | 544 695 | ||||||
Unallocated material expenses | -372 067 | |||||||||||
Unallocated changes in inventories | 8 499 | |||||||||||
Unallocated financial result | -4 975 | |||||||||||
Earnings before taxes (EBT) | 176 151 | |||||||||||
Cash effective investments in property, plant and equipment and intangible assets | 6 439 | 1 671 | 5 842 | 49 102 | - | 63 054 | ||||||
Balance sheet as at December 31, 2024 | ||||||||||||
Trade receivables – Third parties | 45 410 | 59 177 | 22 280 | - | - | 126 867 | ||||||
Trade receivables – Group companies | 35 936 | 2 297 | 37 | - | -38 270 | - | ||||||
Property, plant and equipment and intangible assets | 28 982 | 44 991 | 32 215 | 182 268 | - | 288 456 | ||||||
Unallocated assets | 348 362 | |||||||||||
Total assets | 763 685 |
in CHF 1 000 | EMEA | Americas | Asia Pacific | Shared Services1) | Elimination1) | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
2023 | ||||||||||||
Income statement | ||||||||||||
Net sales – Third parties | 375 920 | 373 813 | 109 053 | - | - | 858 785 | ||||||
Operating expenses1) | -59 229 | -48 610 | -19 907 | -211 699 | 11 | -339 434 | ||||||
Other operating income1) | 1 082 | - | 354 | 6 403 | -68 | 7 771 | ||||||
Depreciation and amortization | -4 560 | -4 837 | -2 834 | -23 615 | - | -35 846 | ||||||
Segment profit | 313 213 | 320 365 | 86 666 | -228 911 | -57 | 491 277 | ||||||
Unallocated material expenses | -327 852 | |||||||||||
Unallocated changes in inventories | -10 958 | |||||||||||
Unallocated financial result | -10 053 | |||||||||||
Earnings before taxes (EBT) | 142 413 | |||||||||||
Cash effective investments in property, plant and equipment and intangible assets | 4 859 | 6 353 | 4 757 | 31 075 | - | 47 043 | ||||||
Balance sheet as at December 31, 2023 | ||||||||||||
Trade receivables – Third parties | 44 472 | 49 841 | 16 702 | - | - | 111 015 | ||||||
Trade receivables – Group companies | 22 117 | 2 267 | 20 | - | -24 404 | - | ||||||
Property, plant and equipment and intangible assets | 26 433 | 43 641 | 26 773 | 149 795 | - | 246 641 | ||||||
Unallocated assets | 304 333 | |||||||||||
Total assets | 661 989 |
1) Operating expenses and Other operating income in "Shared Services" and "Elimination" re-presented to reflect the change in 2024 in the reporting to the Chief Operating Decision Maker.
Net sales development compared to the previous year in the market regions was as follows:
2024 | 2023 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
in CHF 1 000 | Net sales | %1) | Growth in CHF | Growth in local currencies | Net sales | %1) | Growth in CHF | Growth in local currencies | ||||||||
EMEA | 389 731 | 41% | 3.7% | 5.9% | 375 920 | 44% | 2.2% | 6.4% | ||||||||
Americas | 433 976 | 46% | 16.1% | 19.8% | 373 813 | 44% | 1.5% | 7.7% | ||||||||
Asia Pacific | 120 153 | 13% | 10.2% | 14.6% | 109 053 | 13% | -1.5% | 8.2% | ||||||||
Total | 943 860 | 100% | 9.9% | 13.1% | 858 785 | 100% | 1.4% | 7.2% | ||||||||
1) in % of total net sales
Overall, movements in exchange rates had an effect of -3.2 percentage points on net sales growth (2023: -5.8 percentage points). Approximately 41% of net sales were denominated in US dollar, 27% in euro, 7% in Canadian dollar, 6% in Swiss franc, 6% in Chinese yuan, and 14% in other currencies (2023: 39% in US dollar, 29% in euro, 6% in Canadian dollar, 6% in Swiss franc, 6% in Chinese yuan, and 14% in other currencies).
Net sales by business line were as follows:
2024 | 2023 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
in CHF 1 000 | Net sales | %1) | Growth in CHF | Growth in local currencies | Net sales | %1) | Growth in CHF | Growth in local currencies | ||||||||
Damper Actuators | 431 666 | 46% | 6.6% | 9.7% | 404 788 | 47% | -4.5% | 1.1% | ||||||||
Control Valves | 468 043 | 50% | 12.1% | 15.4% | 417 490 | 49% | 6.1% | 12.0% | ||||||||
Sensors and Meters | 44 152 | 5% | 20.9% | 25.0% | 36 507 | 4% | 23.3% | 31.0% | ||||||||
Total | 943 860 | 100% | 9.9% | 13.1% | 858 785 | 100% | 1.4% | 7.2% | ||||||||
1) in % of total net sales
The following table shows information on geographic regions:
Net sales to third parties | Property, plant and equipment, intangible assets | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
in CHF 1 000 | 2024 | %1) | 2023 | %1) | December 31, 2024 | %2) | December 31, 2023 | %2) | ||||||||
Germany | 80 074 | 8% | 82 310 | 10% | 20 660 | 7% | 17 471 | 7% | ||||||||
Central Eastern Europe | 63 020 | 7% | 59 565 | 7% | 258 | - | 327 | - | ||||||||
Italy | 31 554 | 3% | 29 256 | 3% | 1 144 | - | 1 453 | 1% | ||||||||
France | 29 370 | 3% | 27 517 | 3% | 1 285 | - | 1 351 | 1% | ||||||||
Switzerland | 26 654 | 3% | 24 878 | 3% | 166 632 | 58% | 139 011 | 56% | ||||||||
Others | 159 061 | 17% | 152 393 | 18% | 7 209 | 2% | 7 822 | 3% | ||||||||
EMEA | 389 731 | 41% | 375 920 | 44% | 197 189 | 68% | 167 434 | 68% | ||||||||
USA | 338 485 | 36% | 294 374 | 34% | 53 903 | 19% | 50 147 | 20% | ||||||||
Canada | 81 132 | 9% | 67 957 | 8% | 3 312 | 1% | 1 826 | 1% | ||||||||
Others | 14 360 | 2% | 11 481 | 1% | 104 | - | 41 | - | ||||||||
Americas | 433 976 | 46% | 373 813 | 44% | 57 319 | 20% | 52 013 | 21% | ||||||||
China | 52 027 | 6% | 48 309 | 6% | 22 099 | 8% | 15 358 | 6% | ||||||||
Others | 68 126 | 7% | 60 743 | 7% | 11 848 | 4% | 11 836 | 5% | ||||||||
Asia Pacific | 120 153 | 13% | 109 053 | 13% | 33 947 | 12% | 27 194 | 11% | ||||||||
Total | 943 860 | 100% | 858 785 | 100% | 288 456 | 100% | 246 641 | 100% | ||||||||
1) in % of total net sales
2) in % of total property, plant and equipment and intangible assets
Belimo develops, produces, and distributes innovative damper actuator, control valve, and sensor and meter solutions for heating, ventilation, and air-conditioning systems. All products are made from comparable materials and manufactured using similar processes.
The Group has four reportable operating segments, which constitute its strategic divisions. With a view to maintaining a market presence near its customers, the three geographical strategic Group divisions “EMEA”, “Americas”, and “Asia Pacific” are run by regional managers. The organization of the strategic Group division “Shared Services” is subdivided and managed mainly centrally. No sales are therefore allocated to this segment.
The activities of the reportable segments are as follows:
- EMEA, Americas, Asia Pacific: Distribution and sale of Belimo products in the respective market region.
- Shared Services: Research and Development activities, Production, Customizing, Logistics, Finance and Business Services, Group Functions as well as the expenses for the Executive Committee, and the Board of Directors.
The performance of the geographic segments is measured using the cost-sales ratio (operating expenses, depreciation and amortization as a percentage of sales). Material expenses cannot be reliably allocated to the segments due to the Group’s principal structure. As a result of the group-wide application of a principal structure, the central production and sales company in Switzerland is the main risk carrier. The opportunities and risks of the sales companies are limited to their local market risk.
Regarding segment assets, only trade receivables, property, plant and equipment as well as intangible assets are allocated. Liabilities are only reported in full in the internal financial reporting and are not allocated to the reportable segments.
The reportable operating segments are determined using the management approach, which means that external segment reporting is based on the Group’s internal organization and management structure, as well as the internal financial reporting to the Chief Operating Decision Maker – the Board of Directors of BELIMO Holding AG.
Sales are measured net of sales tax, credits for returns, and discounts, and are recognized when control of the goods transfers to the customer. Due to the current business model, the performance obligations are satisfied at a point in time. Generally, sales are recognized upon shipment or upon delivery, as defined in the general terms and conditions and in compliance with generally accepted Incoterms. Performance obligations in contracts with customers have a duration of one year or less. Warranty conditions provide a customer solely with assurance that the related product complies with agreed-upon specifications. Consequently, the accounting for the warranty is in accordance with IAS 37 Provisions, Contingent Liabilities, and Contingent Assets. Payment terms are adapted to local market conditions. For the majority of revenue, payment terms of 1 to 60 days are applied.