Future development of NORMA Group SE
NORMA Group's following forecast is based on the reporting structure valid as of December 31, 2024, and initially expected for 2025. The reasons for this are as follows: NORMA Group announced its decision to sell the global activities of the Water Management business unit on November 28, 2024. The outcome and result of the sales process initiated in January 2025 are still open at the time of approval of the consolidated financial statements (March 18, 2025) and will also be influenced by external factors. From the current perspective, the criteria that would justify classifying the business activities as "discontinued" are therefore not met at the same time. The sales and earnings contributions of the global activities of the Water Management business unit are therefore included in NORMA Group's following forecast.
Based on the assessments of relevant economic research institutes and industry associations presented in the Annual Report 2024 the Management Board of NORMA Group expects that overall economic development will remain challenging in fiscal year 2025. In particular, ongoing geopolitical tensions are creating uncertainty and high volatility in the market environment. An increasingly looming trade war due to protectionist measures by the US government – such as the introduction of punitive tariffs and the corresponding consequences worldwide – is seen as a potentially negative factor. Negative impulses for global economic development are also still expected from further developments in the Ukraine war and the Middle East, as well as the associated impacts on global value and transport chains. Given the continuing difficult environment, the Management Board of NORMA Group SE is approaching fiscal year 2025 with the necessary caution.
The expected development of the key financial performance indicators and the CO2 emissions target for fiscal year 2025 are set out below.
| Forecast for the fiscal year 20251 | |
|---|---|
| Group sales | In the range of around EUR 1.1 billion and around EUR 1.2 billion |
| Adjusted EBIT margin | In the range of around 6% to around 8% |
| Net operating cash flow | In the range of around EUR 75 million to around EUR 95 million |
| NORMA Value Added (NOVA) | In the range of around EUR -40 million to around EUR -20 million |
| CO2 emissions2, 3 | Avoidance of 1,000 tons of CO2 equivalents of emissions emitted at NORMA Group sites |
1 – This forecast is based on the Group structure valid as at December 31, 2024.
2 – The CO2 emissions for the target value were reported in the management system up to the end of the 2024 financial year based on the GHG Protocol (market-based, Scope 1 and Scope 2). Scope 1 only includes emissions from natural gas and liquid gas and Scope 2 emissions from purchased electricity and district heating. When recording emissions, only emissions relating to the production sites were taken into account. Since January 2022, NORMA Group has purchased electricity from renewable energy sources at all production sites. NORMA Group purchases “Energy Attribute Certificates” for this purpose. These are also included in the target value.
3 – The methodology described in footnote 2 was used in the management system until the end of 2024 based on the forecast for CO2 emissions of “below 9,600 tons of CO2 equivalents” issued in fiscal year 2024. The change in the calculation basis in connection with the first-time application of the European Sustainability Reporting Standards (ESRS) will be included in the 2025 Annual Report. This means that in future annual reports, the emissions from the greenhouse gas balance in accordance with the Greenhouse Gas (GHG) Protocol initiative will be reported in the Scope 1 to Scope 3 categories for all locations worldwide in the management system.