NORMA Group SE: announces preliminary results for the third quarter 2020 and new guidance for the current financial year 2020

NORMA Group SE: announces preliminary results for the third quarter 2020 and new guidance for the current financial year 2020

NORMA Group SE / Key word(s): Quarter Results/Forecast
NORMA Group SE: announces preliminary results for the third quarter 2020 and new guidance for the current financial year 2020

20-Oct-2020 / 12:03 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Maintal, October 20, 2020 - NORMA Group SE (ISIN DE 000A1H8BV3 / WKN A1H8BV, "NORMA Group") announces a new full-year guidance based on the preliminary figures for the third quarter of 2020 and the current assessment of future developments.

Based on preliminary, unaudited figures, NORMA Group achieved sales of EUR 245.9 million in the third quarter of 2020 (Q3 2019: EUR 274.0 million). This corresponds to a sales decline of 10.2% compared to the same quarter of the previous year. This includes an organic sales decline of 7.5%. Currency effects had a negative impact of 2.7%.

The adjusted EBITA was roughly at EUR 28.7 million in the third quarter of 2020 (Q3 2019: EUR 38.7 million). The result was also affected by expenses amounting to around EUR 1.5 million resulting from the change program "Get on Track", which was published in November 2019. These costs are not shown as adjustments. Including the aforementioned expenses for "Get on Track" the adjusted EBITA margin was at 11.7% (Q3 2019: 14.1%). The adjusted EBIT was around EUR 26.3 million in the third quarter of 2020 (Q3 2019: EUR 36.5 million), the adjusted EBIT margin amounted to 10.7% (Q3 2019: 13.3%). The net operating cashflow amounted to EUR 40.6 million (Q3 2019: EUR 37.5 million).

Leverage (net debt excl. hedging instruments in relation to EBITDA for the last 12 months) amounted to 3.6 as of September 30, 2020 (June 30, 2020: 3.7). Leverage without the costs of the 'Get on Track' program, and thus the relevant leverage for the financial covenants, was 2.9 (June 30, 2020: 3.1).
Considering the above-mentioned factors, the Management Board of NORMA Group SE is now anticipating a decrease in organic sales of around 16% for the financial year 2020 compared to the previous year.

With regard to the adjusted EBITA margin, more than 5% and an adjusted EBIT margin of more than 4% are expected for the financial year 2020. This includes unadjusted costs for the change program "Get on Track" of around EUR 30 million.

Furthermore, NORMA Group's management board expects a net operating cashflow of more than EUR 60 million for the financial year 2020.

The outlook published here is based on the assumption that in the further course of the COVID-19 pandemic there will not be further significant negative effects, which could lead to another weakening of the global economy in the remaining months of the financial year.



Contact:
Andreas Trösch
Vice President Investor Relations
E-mail: Andreas.Troesch@normagroup.com
Phone: +49 (0)6181 - 6102 741

Information and Explanation of the Issuer to this News:

NORMA Group adjusts certain expenses for the operational management of the company. In the third quarter of 2020, expenses of EUR 0.7 million were shown adjusted within the EBITA. This depreciation on property, plant and equipment from purchase price allocations. In addition, expenses of EUR 6.0 million for amortization of intangible assets were adjusted within EBIT.

NORMA Group will publish the final figures for the third quarter of 2020 on November 4, 2020. At 2:00 p.m., CEO Dr. Michael Schneider and CFO Ms. Annette Stieve, will be available to answer questions during a conference call.

20-Oct-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de



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