Novem Group S.A.: Q1 2024/25 figures show a soft start to the year

EQS-News: Novem Group S.A. / Key word(s): Quarter Results Novem Group S.A.: Q1 2024/25 figures show a soft start to the year 14.08.2024 / 09:00 CET/CEST The issuer is solely responsible for the content of this announcement. Novem Group S.A.: Q1 2024/25 figures show a soft start to the year

• Q1 2024/25 revenue of €140.1 million, ‑20.0% below Q1 2023/24
• Adj. EBIT¹ of €14.2 million, -29.2% below PY
• Market conditions remain challenging in the short-term

Luxembourg, 14 August 2024 – Novem Group S.A. today published its figures for the first quarter of its financial year 2024/25. In the first three months of 2024/25, the Company generated a total revenue of €140.1 million and fell short of previous year by -20.0% driven by the lacklustre demand. For the reporting period, Novem recorded an Adj. EBIT margin¹ of 10.1% despite persistently weak market conditions.

Europe and Asia impacted by subdued demand

In Q1 2024/25, revenue Series of €119.8 million declined by -20.6% compared to prior year, primarily due to the poor market environment. Revenue Tooling of €20.3 million decreased by -16.1% in comparison to last year. By segments, revenue in Europe (€-39.4 million y/y) was well below previous year’s level due to continued weak customer call-offs. In contrast, revenue in Americas (€+10.2 million y/y) showed an increase on the back of the strong demand for SUVs. Declining revenue in Asia (€-5.8 million y/y) was adversely influenced by the lower consumer sentiment and product mix shifts.

Adj. EBIT amounted to €14.2 million in Q1 2024/25, resulting in a solid profit margin of 10.1% (PY: 11.4%). Bottom line was negatively affected by above-average labour costs as well as an unfavourable product mix. However, footprint optimisations, reinforced cost management and customer compensation payments supported the operating result.

Increased capex in preparation for new platforms

Free cash flow¹ for the reporting period came in at €-3.0 million. The deterioration against previous year (€11.2 million) was largely driven by lower profit, higher stock levels and the utilisation of provisions.