NORMA GROUP
Q1 2024
RESULTS
MAINTAL, MAY 7, 2024
Table of Contents - Q1 2024
01
02
03
Q1 2024 Review - Facts & Figures
Slight sales decrease in Q1 2024 due to weaker development in some end markets
Top Line, Segment Reporting and P&L
Significant improvement in adjusted EBIT margin year over year; Efficiency measures key driver in Q1 2024
Net Debt & Equity Ratio
Balance Sheet further improved; Equity ratio further strengthened
> Go to chapter
04
05
06
Cash Flow & NORMA Value Added
Strong increase in Net Operating Cash Flow; NORMA Value Added influenced by higher WACC and still elevated tax rate
> Go to chapter
Guidance & "Step Up" Program
Guidance for FY 2024 confirmed; Step Up efficiency measures on track
> Go to chapter
FY 2023 IR Presentation
FY 2023 - A year of multiple challenges regarding the business environment.
2
Facts & Figures Q1 2024 - Key Figures (I/II)
Sales
Net sales totaled to EUR 308.5
million
(Q1 2023: EUR 315.0 million)
Net Operating
Cashflow
Strong increase in Net Operating Cashflow to EUR -2.3 million*
(Q1 2023: EUR -44.8 million)
Adjusted EBIT | Adj. EBIT Margin |
Adjusted EBIT up to | Adjusted EBIT margin improved to |
EUR 25.7 million | 8.3% |
(Q1 2023: EUR 22.6 million) | (Q1 2023: 7.2%) |
NOVA | CO2 Emissions |
NORMA Value Added | CO2 emissions reduced by 11.2% |
at EUR -7.6 million | to 1,654 t CO2e in Q1 2024 |
(Q1 2023: EUR -9.4 million) | (Q1 2023: 1,862 t CO2e) |
* With factoring programs at EUR 55 million as of March 31, 2024 (December 31, 2023 EUR 58 million)
3
Facts & Figures Q1 2024 - Key Figures (II/II)
Adjusted EPS
Adj. EPS at EUR 0.39
(Q1 2023: EUR 0.37)
Net Debt
Net Debt up to
EUR 378.2 million
(Dec 31, 2023: EUR 345.4 million)
Reported EPS
Rep. EPS at EUR 0.26
(Q1 2023: EUR 0.24)
Leverage
Leverage at 2.4x adj. EBITDA
(Dec 31, 2023: 2.2x)
Equity
Improved equity ratio of 47.0%
(Dec 31, 2023: 46.4%)
Dividend
Dividend proposal of EUR 0.45 for FY 2023 to AGM on May 16, 2024
(2023: EUR 0.55)
4
Q1 2024 Top Line Development
in EUR million | -2.0% | 12% | ||||||||||||||
400 | Regional | |||||||||||||||
(12%) | ||||||||||||||||
315 | 309 | Segments | 44% | |||||||||||||
-3.2 | 0.4 | -3.6 | Split | |||||||||||||
(44%) | ||||||||||||||||
200 | (in %, prev. | 44% | ||||||||||||||
(44%) | ||||||||||||||||
year in | ||||||||||||||||
brackets) | ||||||||||||||||
0 | Americas | EMEA | APAC | |||||||||||||
Sales Q1 2023 | Volume / Pricing | Acquisitions | Currency | Sales Q1 2024 | ||||||||||||
Top Line
- Net Sales development of -2.0% to EUR 308.5 million in 2024 compared to EUR 315.0 million in 2023.
therein* | |||
+1.3% | -2.3% | ||
Price | Volume | ||
Volume / Price Mix
- Volume decreased by overall 2.3 %.
- Decline in volume relates to a cautious start at Industry Applications in Q1 2024, whereas the Water Management business showed a good development; Mobility & New Energy with slight decrease in volume.
- Price increases negotiated in the previous year contributed overall 1.3 % to Group Sales development in Q1 2024.
Currency Effects
- Translation effects of EUR -3.6 million.
- Thus, currency effects reflect -1.1% of Group Net Sales development.
- Currency effects mostly related to USD and APAC region.
*Including also Acquisition effects of 0.1 % related to new Teco business.
5
Q1 2024 - Sales Development by Regions (I/II)
AMERICAS Sales in EUR million | EMEA Sales in EUR million | APAC Sales in EUR million | |||||||
-1.6% | -1.2% | ||||||||
-6.4%
138 | 135 | 138 | 137 | 39 | 37 | ||
Q1 2023 | Q1 2024 | Q1 2023 | Q1 2024 | Q1 2023 | Q1 2024 |
6
Q1 2024 - Sales Development by Regions (II/II)
Americas
- Industry Applications: Subdued demand due to postponements in customer´s spending decisions resulting in lower sales of EUR 18.5 million (Q1 2023: EUR 21.7 million)
-
Water Management: Good development in the US market leading to increased sales level
of EUR 64.9 million (Q1 2023: EUR 62.2 million) - Mobility & New Energy: Sales decreased slightly
to EUR 52.0 million (Q1 2023: EUR 53.7 million)
Sales Development (in EUR million)
200
138 | 135 |
-0.6-1.6
100
-
Sales Q1 | Volume/ | Currency | Sales Q1 |
2023 | Price Mix | 2024 |
EMEA
-
Industry Applications: Decline in sales to EUR
31.6 million (Q1 2023: EUR 33.8 million) due to overall weaker industrial economy - Water Management: Growth in volume and acquisition effects from Teco acquisition completed in February 2024 contributed to sales of EUR 1.5 million (Q1 2023: EUR 0.6 million)
- Mobility & New Energy: Sales at EUR 103.4 million almost on par with the same period of the previous year (Q1 2023: EUR 103.8 million)
Sales Development (in EUR million)
200
138 | 137 |
-2.0-0.1
100
0
Sales Q1 | Volume/ | Currency | Sales Q1 |
2023 | Price Mix | 2024 |
APAC
-
Industry Applications: Sales declined to EUR 4.9
million (Q1 2023: EUR 6.2 million) due to a further delay in recovery of the Chinese economy - Water Management: Sales of EUR 6.6 million
(Q1 2023: EUR 7.2 million) - Mobility & New Energy: Stable business development with sales almost at the previous year's level of EUR 25.1 million (Q1 2023: EUR 25.8 million)
Sales Development (in EUR million)
50 | |
39 | 37 |
-0.6-1.9
25
0
Sales Q1 | Volume/ | Currency | Sales Q1 |
2023 | Price Mix | 2024 |
7
Q1 2024 - Sales Development in Strategic Business Units
Industry Applications
- Overall, sales fell by 10.8% in Q1 2024 primarily due to lower volumes as a result of weak global demand. This was offset to a small extent by higher sales prices compared to the same quarter of the previous year.
Sales Development (in EUR million)
100
62 | 55 | |||
50 | ||||
-6.1 | -0.5 | |||
- | ||||
Sales Q1 | Volume/ | Currency | Sales Q1 | |
2023 | Price Mix | 2024 |
Water Management
- Increase in sales of 4.2% in total, driven predominantly by good volume growth. Acquisition effects supported top line additionally. Negative currency effects had a dampening effect.
Sales Development (in EUR million)*
100
70 | 3.7 | 73 |
-1.2 |
50
0
Sales Q1 | Volume/ | Currency | Sales Q1 |
2023 | Price Mix | 2024 |
Mobility & New Energy
- Sales 1.5% below the level of the same quarter of the previous year, driven by negative currency effects. Slightly lower volume included in this figure could be partly offset by the higher sales prices negotiated in the previous year.
Sales Development (in EUR million)
200 | 183 | 181 |
-0.8-1.9
100
0
Sales Q1 | Volume/ | Currency | Sales Q1 |
2023 | Price Mix | 2024 |
* Sales in Q1 2024 also including acquisition effects (from Teco acquisition) of 0.6 %.
8
Q1 2024 (Adjusted) Profit & Loss Development
Material Costs | Gross Profit | |||
(in EUR million and % of sales) | (in EUR million and % of sales) | |||
-141.5 | -136.8 | 169.3 | 176.2 | |
44.9% | ||||
44.3% | ||||
57.1% | ||||
53.8% | ||||
Q1 2023 | Q1 2024 | Q1 2023 | Q1 2024 |
Material Cost ratio improved by 60 BPs due to cost reductions in purchasing; Gross Profit ratio up by 330 BPs mainly resulting from decreased material costs and inventory built up of EUR 3.2 million (Q1 2023: inventory decrease of EUR 4.8 million)
Personnel Expenses
(in EUR million and % of sales)
-82.1-86.0
27.9%
26.1%
Q1 2023 | Q1 2024 |
Personnel Expense ratio up by 180 BPs due to wage inflation and temporary inefficiencies
Net Expenses from adj. other oper.
Income and Expenses
(in EUR million and % of sales)
-50.5-49.7
16.0%16.1%
Q1 2023 | Q1 2024 |
Total OPEX decreased mainly due to lower
(special) freight costs
Adjusted EBITDA | Adjusted EBIT | |||
(in EUR million and % of sales) | (in EUR million and % of sales) | |||
36.7 | 40.5 | 25.7 | ||
13.1% | 22.6 | |||
11.7% | 8.3% | |||
7.2% | ||||
Q1 2023 | Q1 2024 | Q1 2023 | Q1 2024 |
Adjusted EBITDA and adjusted EBIT margins showed a strong positive development in Q1 2024 and improved
significantly due to implemented efficiency measures compared to the prior year's quarter.
9
Q1 2024 - Adjusted EBIT Margin by Region
AMERICAS adj. EBIT Margin | EMEA adj. EBIT Margin | APAC adj. EBIT Margin |
11.0% | 11.1% | 5.5% | 7.4% | 6.3% | 6.9% | ||
Q1 2023 | Q1 2024 | Q1 2023 | Q1 2024 | Q1 2023 | Q1 2024 |
10
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Disclaimer
Norma Group SE published this content on 06 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2024 11:25:01 UTC.