Norma Group (NOEJ) Q4 2024 earnings summary

Executive summary

• 2024 marked a year of significant change, with operational improvements, a new vision and mission, and the "Step Up" program driving over 2,000 initiatives for efficiency and recovery.

• The sharpened corporate strategy includes divesting the Water Management business to focus on core industrial applications and competencies.

• Maintained reliable communication, enhanced competitiveness, and aimed for best-in-class status.

Financial highlights

• Net sales declined by 5.5% to EUR 1,155.1 million, mainly due to lower volumes in Mobility & New Energy and Industry Applications.

• Gross profit margin increased by 320 basis points, with adjusted gross profit at EUR 668.2 million; adjusted EBIT margin stable at 8.0%.

• Adjusted EPS was EUR 1.28 (2023: EUR 1.37); proposed dividend of EUR 0.40 per share (31.2% payout ratio).

• Net operating cash flow increased by 20.7% to EUR 105.4 million; external free cash flow rose by over 50% to EUR 57.0 million.

• Equity increased to EUR 721.4 million, with an improved equity ratio of 50.2%; net debt decreased to EUR 329.2 million.

Outlook and guidance

• 2025 group sales expected between EUR 1.1–1.2 billion, with adjusted EBIT margin guidance of 6–8% and net operating cash flow of EUR 75–95 million.

• Muted demand anticipated in H1 2025, with potential improvement in H2 as stimulus measures take effect.

• Targeting a return to double-digit adjusted EBIT margins in the medium term, post Water Management divestment.