R&M – R&M: High-end data networks remain in demand

The R&M Group achieved an increase of 8.6% in the 2022 business year.

Consistent transformation into a provider of complete infrastructures for data centers and broadband networks.

R&M, the globally active Swiss developer and provider of high-end infrastructure solutions for data and communications networks, generated sales of CHF 297.9 million in the 2022 financial year. The increase is 8.6% Group-wide, reports the family-owned company headquartered in Wetzikon.

«The acquisition of the cabinet manufacturer Tecnosteel S.r.l., the sale of the non-strategic energy cable business, and the strong appreciation of the Swiss franc had a significant impact on earnings. Organically and at constant exchange rates, growth is at a good 7.8%,» adds R&M CEO Michel Riva.

In 2022, R&M generated EBIT of CHF 12.6 million (previous year: 15.2 million). M&A activities and the restructuring of a regional company affected earnings. Discounting these extraordinary costs, EBIT was slightly up on the previous year.

«High-end infrastructures for data and communications networks are on the upswing despite current crises,» says CEO Michel Riva.

The recovery of the markets, which began back in 2021, continued seamlessly in the first half of 2022. Capacities had to be further increased in all regions. In the second half of the year, however, order intake leveled off, particularly in the LAN business, due to initial recessionary trends. At the end of 2022, the Group employed 1,700 people worldwide.

Transformation to an infrastructure provider

The takeover of the Italian housing and cabinet manufacturer Tecnosteel S.r.l. in early 2022 took place within the framework of the sustainable growth strategy and further development of the business model.

Michel Riva emphasizes: «R&M is continuing to transform itself from a component manufacturer to a global provider of complete infrastructures for data and communications networks.»

Strong growth in Asia

With stable sales, the GAS region remains the most important sales market for R&M. In the rest of Europe, R&M achieved double-digit growth. In Asia, this was around 40%. In China, the range of data centers has been expanded.

«With its two production plants for cabinets and connectivity, R&M is ideally positioned in China,» says CEO Michel Riva.

Markets in the Middle East performed positively overall. However, key projects in Egypt were delayed due to import restrictions. At the same time, R&M won major orders in the United Arab Emirates (UAE), Turkey, and Morocco.

«Business in the Americas was more challenging,» reports CEO Michel Riva.

In the USA, a long-standing major customer reduced its investment activities. In Brazil, telecom providers slowed down the expansion of fiber optic networks due to economic and political uncertainties. However, the situation in both countries is expected to improve in the near future.

Opportunities with 5G and smart buildings

«We expect the demand for high-end and, above all, fiber optic network solutions to continue to increase in all business areas,» says Michel Riva.

The digital era calls for more and small, distributed data centers. New opportunities are opening up for R&M due to the construction of 5G networks and the market for smart buildings.

Founded in Wetzikon in 1964, the family-owned company comprehensively promotes sustainability. R&M has set itself the goal of halving operational CO2 emissions by 2030. Since 2022, R&M has had the climate-relevant emissions of its 14 plants recorded by the myclimate Foundation in Zurich. The rating agency EcoVadis awarded R&M the silver certificate for sustainability in 2022.

Download the Annual Report and get further information on the business year: https://www.rdm.com/company/about-rm/annual-report/

Source
R&M