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• Revenue Decline: 5.5% decrease in sales for the full year '24.

• Gross Profit Margin: Increased by 320 basis points due to reduced material costs.

• Operating Cost Reduction: Freight costs reduced by EUR3.8 million (25%), special freight costs reduced by EUR6.2 million (80%).

• Adjusted EBIT Margin: Maintained at 8% despite lower sales.

• Net Financial Debt: Decreased by 4.7% compared to the end of '23.

• Equity Ratio: Improved to 50.2%, highest since IPO.

• Net Operating Cash Flow: Increased by more than 20%.

• External Cash Flow: Increased by over 50% to EUR57 million.

• EPS: Adjusted earnings per share at EUR1.28, lower than in '23.

• Dividend Proposal: EUR12.7 million total, EUR0.40 per share, payout ratio of 31.2%.

• Trade Working Capital: Increased to EUR236 million, slightly above previous year's EUR231 million.

• Water Management Sales Growth: Increased by 3.5% compared to the previous year.

• Mobility and New Energy Sales Decline: Decreased by 8.9% year-over-year.

• Industry Applications Sales Decline: Decreased by 6.4% year-over-year.

• Warning! GuruFocus has detected 5 Warning Signs with WBO:NOEJ.

Release Date: March 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• NORMA Group SE (WBO:NOEJ) maintained a constant 8% margin despite a 5.5% revenue decline, showcasing resilience in a challenging market.

• The company successfully implemented cost reduction measures, notably reducing freight costs by EUR 3.8 million or 25%, and special freight costs by EUR 6.2 million or 80%.

• NORMA Group SE's net financial debt decreased by 4.7% compared to the end of 2023, reflecting improved financial health.

• The equity ratio reached its highest level since the IPO at 50.2% by the end of 2024, indicating strong financial stability.

• The company achieved all its ESG targets for 2024, including CO2 reduction and maintaining good ESG ratings, reflecting a strong commitment to sustainability.

Negative Points

• Sales declined by 5.5% in 2024, primarily due to weak demand in Europe and Asia, particularly in the automotive and truck industries.

• The Mobility and New Energy segment experienced the largest year-over-year sales reduction of 8.9%, driven by subdued global demand.

• The adjusted EBIT margin in the EMEA region was negatively impacted by lower sales volumes and rising personnel costs.

• NORMA Group SE's earnings per share decreased compared to 2023, with a proposed dividend of EUR 0.40 per share, reflecting a payout ratio of 31.2%.

• The company faces uncertainties from global tariffs, which could impact spending and demand in affected countries, adding to the challenging market environment.