NORMA Group achieves sound earnings and improved profitability in the first quarter of 2024

  • Adjusted operating profit (EBIT) increased by 13.9 percent to EUR 25.7 million
  • Adjusted EBIT margin increased by 1.1 percentage points to 8.3 percent
  • Sales in the first quarter of 2024 with a slight year-on-year decrease of 2.0 percent to EUR 308.5 million
  • Positive impact from Step Up improvement program
Maintal, Germany, May 7, 2024
– NORMA Group got the 2024 financial year started with an improved level of profitability. The company was more profitable than both the previous quarter and the same period of the previous year.

Group sales were down slightly year-on-year by 2.0 percent to EUR 308.5 million (Q1 2023: EUR 315.0 million). In organic terms, sales decreased by 1.0 percent in the first three months of 2024. Negative currency effects also reduced sales by 1.1 percent compared to the previous year. The recently acquired water management company Teco made a positive contribution of 0.1 percent to sales growth.

Adjusted earnings before interest and taxes (adjusted EBIT) recorded a significant year-on-year increase of 13.9 percent in the first quarter of 2024 to EUR 25.7 million (Q1 2023: EUR 22.6 million). The adjusted EBIT margin amounted to 8.3 percent, thus also improving significantly (Q1 2023: 7.2 percent). More efficient production and the slowdown in material cost inflation had a positive impact on the margin. Higher personnel costs as a result of inflation-related wage increases and costs for the reduction of production backlogs as well as higher interest rates were, however, a challenging factor. Net operating cash flow was EUR -2.3 million in the period from January to March 2024, well above the figure from the same quarter in 2023 (Q1 2023: EUR -44.8 million).

CEO Guido Grandi: “We got off to a successful start to the year and managed to achieve a significant improvement in our profitability. Our robust business model with three business units gives us attractive opportunities even in a somewhat unsettled economic environment. With the Step Up program initiated a year ago, we have taken the right path forward and have become more efficient, particularly in Europe. We will continue to build on this progress to ensure sustainable profitable growth for NORMA Group.”

Mixed development in the business units

In the EMEA region (Europe, Middle East and Africa), sales were down 1.2 percent at EUR 136.5 million in the first quarter of 2024 (Q1 2023: EUR 138.2 million). There was a mixed performance in the three customer industries. Sales in Industry Applications declined as a result of the subdued economic situation in Europe. Business with water management solutions (Water Management), on the other hand, saw significant growth in the region. The acquisition of Italian water specialist Teco, which was completed in February 2024, was one of the factors contributing positive momentum. In the area of joining technology for vehicles (Mobility & New Energy), sales remained stable at the level of the same period of the previous year. Profitability in the EMEA region continued to improve in the first quarter of 2024: Despite the slight decline in sales, adjusted EBIT rose to EUR 10.6 million (Q1 2023: EUR 8.1 million). The adjusted EBIT margin of 7.4 percent was well above the prior-year quarter (Q1 2023: 5.5 percent). The higher level of profitability is based on lower costs for energy and materials as well as internal improvement measures in production and logistics.

In the Americas region, sales in the first quarter of 2024 had a slight 1.6 percent year-on-year decline to EUR 135.4 million (Q1 2023: EUR 137.6 million). The decline is primarily attributable to negative currency effects in connection with the US dollar (-1.1 percent). In Industry Applications, postponements in investment decisions due to an expected though not yet announced cut in interest rates had a dampening effect on demand. In Water Management, on the other hand, there was noticeable growth in the period from January to March 2024. In the Mobility & New Energy business unit, business volume was down on the previous year. Adjusted EBIT in the Americas region amounted to EUR 15.2 million in the first quarter of 2024 and was thus slightly below the prior-year figure (Q1 2023: EUR 15.4 million). The adjusted EBIT margin, however, showed a slightly positive development at 11.1 percent (Q1 2023: 11.0 percent).

In the Asia-Pacific region, sales amounted to EUR 36.6 million in the first quarter (Q1 2023: EUR 39.1 million). Organically, sales were down 1.5 percent; negative currency effects reduced sales growth by an additional 4.9 percent. In Industry Applications, the generally sluggish economic recovery in China and the tense situation in the construction sector in particular led to a drop in demand. Sales in Water Management were also down from the same quarter of the previous year. In Mobility & New Energy, which is primarily driven by the Chinese automotive industry in the region, business was stable. Adjusted EBIT in the Asia-Pacific region amounted to EUR 2.7 million in the first quarter of 2024 despite lower sales (Q1 2023: EUR 2.6 million). The adjusted EBIT margin improved to 6.9 percent (Q1 2023: 6.3 percent).

Efficiency measures having an impact

NORMA Group launched its global growth and efficiency program Step Up in spring 2023. To date, more than 1,300 individual measures have been identified, more than half of which are currently being implemented or have already been completed. The measures are structured into growth plans for the three strategic business units Industry Applications, Water Management and Mobility & New Energy on the one hand and measures to increase operational efficiency on the other. NORMA Group will identify and implement additional measures in the coming years.

Annual General Meeting with on-site attendance

NORMA Group’s Annual General Meeting will take place on May 16, 2024, as an in-person event in Frankfurt/Main. One of the items on the agenda is the re-election of Mark Wilhelms who has been a member of the Supervisory Board since 2018 and has been Chairman since May 2023.

NORMA Group in figures

Other dates and additional information

NORMA Group will publish its business figures for the second quarter on August 13, 2024. Additional information on the business results can be found here. For press photos, please visit our Press Area.


Get in touch with us for more support.

Contact Us

To top