Preliminary figures for the 2023 financial year: NORMA Group achieves stable profitability and strong cash flow

• Preliminary, unaudited figures put sales at around EUR 1.2 billion in 2023
• Adjusted operating profit (EBIT) at EUR 97.5 million; adjusted EBIT margin at 8.0 percent
• Efficiency measures deliver stable profitability
• Earnings, margin and cash flow in the fourth quarter significantly better than in the previous year

NORMA Group today presented its preliminary figures for financial year 2023 and the fourth quarter of 2023. With slightly lower sales, the company achieved stable profitability and strong cash flow.

CEO Guido Grandi: “We achieved a sound result in 2023 in a challenging environment. We enhanced the efficiency of our operating business more, mitigated the effects of inflation-related cost increases and attracted new customers for our innovative joining technology. In the second half of the year, our improvement measures took effect, so that we achieved a significant increase in earnings in the fourth quarter compared to the previous year. Overall, we achieved a stable margin and considerably increased cash flow.”

Preliminary, unaudited figures put Group sales in financial year 2023 at EUR 1,222.8 million. Compared to the previous year, the company achieved organic growth of 0.7 percent. Negative currency effects, however, slowed sales growth by 2.4 percent. Overall, Group sales were down slightly, declining 1.6 percent compared to the previous year (2022: EUR 1,243.0 million).

Adjusted earnings before interest and taxes (adjusted EBIT) of EUR 97.5 million was 1.5 percent below the previous year’s figure (2022: EUR 99.0 million). The adjusted EBIT margin amounted to 8.0 percent, which corresponds to the figure for the same period of the previous year (2022: 8.0 percent). Net operating cash flow improved significantly compared to the previous year, reaching EUR 87.3 million (2022: EUR 65.3 million). The primary driver of the strong cash inflow is the lower (trade) working capital as a result of consistent liquidity management and optimized inventory management.

Earnings and margin improved in the fourth quarter

According to preliminary figures, sales in the period from October to December 2023 fell organically by 1.7 percent compared to the same quarter of the previous year. This is partly due to a temporary reduction in order call-offs in the USA following widespread strikes at US vehicle manufacturers in the fall of 2023. Negative currency effects also reduced growth in the fourth quarter by 3.4 percent. Overall, Group sales dipped 5.1 percent compared to the same quarter of the previous year to EUR 286.7 million (Q4 2022: EUR 302.1 million). Adjusted EBIT developed positively and, at EUR 23.0 million, was 19.4 percent higher than in the same period of the previous year (Q4 2022: EUR 19.3 million). The adjusted EBIT margin of 8.0 percent was well above the level of the prior year (Q4 2022: 6.4 percent). Measures to enhance efficiency in production and logistics had a positive impact on profitability.

Greater efficiency is the foundation for further growth

Guido Grandi: “Our development expertise combined with our global presence make us a strong partner for our customers in different markets and countries. I am confident that we will be able to generate further profitable growth in our three strategic business units of Water Management, Industry Applications and Mobility & New Energy. With our ‘Step Up’ improvement program, we have laid an important foundation in this regard and have already seen initial successes.”

NORMA Group launched the “Step Up” growth and efficiency program in May 2023. The measures are broken down into growth plans for the three strategic business units Water Management, Industry Applications and Mobility & New Energy on the one hand, in addition to measures to increase operational efficiency on the other. NORMA Group will put these measures to work to ensure long-term profitable growth.

Other dates: final figures and outlook for 2024

NORMA Group will present the audited, comprehensive figures for financial year 2023 with detailed information on the business regions and the sustainability performance indicators and the forecast for the current financial year on March 26, 2024.