EQS-News

Novem Group S.A.: HY 2023/24 figures show solid profit margin in demanding environment

EQS-News: Novem Group S.A. / Key word(s): Quarter Results/Half Year Results Novem Group S.A.: HY 2023/24 figures show solid profit margin in demanding environment 29.11.2023 / 09:00 CET/CEST The issuer is solely responsible for the content of this announcement. Novem Group S.A.: HY 2023/24 figures show solid profit margin in demanding environment

• HY 2023/24 revenue of €347.1 million, -3.4% below HY 2022/23
• Adj. EBIT¹ of €38.0 million, -8.4% below PY
• Free cash flow¹ of €33.5 million considerably above PY (€+13.1 million)

Luxembourg, 29 November 2023 – Novem Group S.A. today published its half-year figures for the financial year 2023/24. In a demanding market environment, Novem generated a total revenue of €347.1 million, thus equalling a modest decline over previous year by -3.4%.

Divergent revenue development between segments

In Q2 2023/24, revenue Series of €149.6 million saw a -4.4% decline compared to previous year, predominantly due to weak customer call-offs as well as model changes in Europe and Asia. By contrast, revenue Tooling of €22.3 million increased by €1.4 million or 6.7% year-on-year. Based on constant foreign exchange rates, revenue in this year’s second quarter would have been higher by €6.5 million or 3.8%.

On a segmental basis, revenue decreased in both Europe and Asia, while Americas showed a positive trend. Declining revenue in Europe (€-2.2 million year-on-year) was mainly attributable to sluggish trading conditions. In comparison, Americas (€+1.1 million year-on-year) developed favourably due to the continued strong momentum for SUVs and despite a negative impact of a comparatively weaker US Dollar. Revenue in Asia (€-4.4 million year-on-year) was influenced by currency effects and model changes.

Adj. EBIT in Q2 2023/24 came in at €18.0 million with a €-2.1 million year-on-year variance, resulting in a solid margin of 10.4% for the period. Weak revenue burdened the operating result mainly in Europe and Asia. On top of that, Novem suffered from mediocre utilisation of some European plants. Various savings measures are underway to counteract this, including the closure of production in Bergamo (Italy) to streamline the manufacturing footprint and improve the cost structure. Continued lower input and freight costs as well as customer compensation payments supported the bottom line.