NORMA Group again increases sales to over one billion euros in 2021

• According to preliminary figures, sales were up 14.7 percent to EUR 1,091.9 million
• Significant business recovery from previous year, which was impacted by the pandemic
• Preliminary adjusted EBIT margin at 10.4 percent
• Global supply chain bottlenecks hampered recovery in final quarter
• Ongoing “Get on track” change program delivers savings of EUR 27.4 million

NORMA Group again surpassed the one billion euro sales threshold in 2021 following the pandemic-related business decline in the previous year. According to preliminary, unaudited figures, the company increased consolidated sales by 14.7 percent to EUR 1,091.9 million (2020: EUR 952.2 million). Contributing factors included the sound order volume with standardized joining technology in Europe, strong demand from the Chinese automotive industry and ongoing significant growth in business with water management solutions in America. Organically, sales at Group level showed strong growth of 16.2 percent; negative currency effects, however, lowered sales growth by 1.5 percent. Global supply chain bottlenecks also slowed the recovery of earnings and margin in the fourth quarter.

CEO Dr. Michael Schneider: “The global economic recovery has revived demand for our joining solutions. In a difficult environment with new challenges arising from distortions in global supply chains, NORMA Group has once again demonstrated considerable resilience and achieved sound growth. We will continue to consistently focus our business model on three strategic business units with good growth opportunities: Water management, general industry applications, and mobility and new energy.”

Noticeable recovery in earnings and margin

At EUR 113.8 million, adjusted earnings before interest and taxes (adjusted EBIT) were well above the previous year’s figure (2020: EUR 45.3 million). The adjusted EBIT margin was 10.4 percent, also significantly exceeding the prior-year figure (2020: 4.8 percent). Among other factors, there was a positive impact from savings achieved as part of the “Get on track” change program.

Fourth quarter impacted by supply chain bottlenecks

In the fourth quarter, ongoing bottlenecks in global supply and logistics chains impacted both earnings and margin. For one thing, the shortage of electronic components led automotive customers to call off lower volumes or postpone orders. For another, prices for production materials such as plastics, stainless steel and alloy surcharges as well as for transportation services increased noticeably from mid-2021. According to preliminary figures, sales in the fourth quarter of 2021 decreased slightly by 1.2 percent year-on-year to EUR 258.1 million (Q4 2020: EUR 261.2 million). Organically, sales fell 4.2 percent. Currency effects, especially in connection with the U.S. dollar, had a positive impact of 3.1 percent. Adjusted EBIT decreased in the final quarter of 2021 compared to the fourth quarter of 2020 by 3.4 percent to EUR 17.9 million (Q4 2020: EUR 18.6 million). The adjusted EBIT margin was 6.9 percent (Q4 2020: 7.1 percent).

Change program having an impact

In financial year 2021, NORMA Group pressed ahead as planned with the implementation of its “Get on track” change program, which was launched in November 2019. The program includes the optimization of site capacities in all regions, a streamlining of the product portfolio and improvements in purchasing. In 2021, among other things, the company generated savings by more intensively bundling its purchasing activities for production materials for various sites to a greater extent. In addition, the production site in Fresno, California, was integrated into existing plants in Lindsay, also in California, and in Tijuana, Mexico. In Central Europe, a plant in the German city of Gerbershausen will be closed by the end of 2022 and production there is being gradually transferred to existing European plants in Germany, Sweden and the Czech Republic. Overall, “Get on track” delivered savings of EUR 27.4 million in 2021. The costs for the change program, which are not adjusted to ensure transparent presentation, amounted to EUR 1.5 million in 2021. The change program is expected to generate annual savings of around EUR 50 million from 2023 onwards and position NORMA Group more flexibly and profitably in the long term.

NORMA Group in figures

* Deviations may occur due to commercial rounding.
** Adjustments: In financial year 2021 step-up effects from purchase price allocations (EUR 21.7 million). Information on the prior-year adjustments can be found in the Annual Report 2020 (p. 182 ff.).

The business figures in this press release are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. Additional information on the business results can be found here. For press photos, please visit our press area. Additional information on the company is available at www.normagroup.com.

Additional dates

NORMA Group will present the final audited figures for financial year 2021 including more detailed explanations on business development on March 23, 2022.