NORMA Group Maintains Robust Profitability Amid Market Challenges, Announces Supervisory Board Nomination

NORMA Group Maintains Robust Profitability Amid Market Challenges, Announces Supervisory Board Nomination

(IN BRIEF) NORMA Group reported strong profitability in Q2 2024, despite a challenging market environment, with adjusted EBIT at EUR 26.1 million and a slightly improved margin of 8.5%. The company saw growth in its water management solutions but faced weaker demand in vehicle and industrial sectors. NORMA Group has confirmed its full-year 2024 forecast and announced the nomination of Kerstin Müller-Kirchhofs to its Supervisory Board.

(PRESS RELEASE) MAINTAL, 13-Aug-2024 — /EuropaWire/ — NORMA Group has demonstrated solid profitability in the second quarter of 2024, despite facing a challenging market environment. The company’s water management solutions sector showed continued growth, while the demand in the vehicle and industrial applications sectors was impacted by broader economic conditions. Overall, NORMA Group’s performance in the first half of 2024 aligned with expectations, with a notable improvement in profitability.

The company reported a 5.5% year-on-year decrease in Q2 2024 sales, amounting to EUR 306.3 million, with currency effects and the acquisition of Italian irrigation specialist Teco contributing marginally to sales. Adjusted EBIT for the quarter stood at EUR 26.1 million, reflecting a 3.6% decline compared to the previous year, but the adjusted EBIT margin slightly improved to 8.5%. The company also achieved strong cash flow, with net operating cash flow reaching EUR 43.6 million, a significant increase from the same quarter in 2023.

NORMA Group’s CEO, Guido Grandi, highlighted the company’s resilience during the quarter, noting that while global industrial sector growth was sluggish, the efficiency measures introduced in 2023 as part of the “Step Up” program helped maintain robust margins and reduce costs, particularly in logistics. The company remains focused on profitable growth in its key strategic areas: Industry Applications, Water Management, and Mobility & New Energy.

In terms of regional performance, NORMA Group saw a mixed picture. Sales in the Americas increased by 1.3% to EUR 146.4 million, driven by strong demand for water management solutions. However, the EMEA region experienced a 10.1% decline in sales to EUR 122.7 million, reflecting weaker demand in the European vehicle industry and general industrial applications. In the Asia-Pacific region, sales fell by 13.4% to EUR 37.2 million, primarily due to a slow recovery in the Chinese economy and lower demand from the automotive sector.

Looking ahead, NORMA Group’s management has confirmed its full-year 2024 forecast, anticipating Group sales of EUR 1.2 billion to EUR 1.3 billion and an adjusted EBIT margin between 8.0% and 8.5%. Net operating cash flow is expected to range between EUR 80 million and EUR 110 million.

Additionally, the company announced the nomination of Kerstin Müller-Kirchhofs as a new member of the Supervisory Board, filling the vacancy left by Miguel Ángel López Borrego. Müller-Kirchhofs, with her extensive experience in financial management within industrial companies, is expected to bring valuable expertise to the board.

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SOURCE: NORMA Group