EQS-News

Novem Group S.A.: Q3 2023/24 figures reflect challenging market conditions

EQS-News: Novem Group S.A. / Key word(s): Quarter Results/9 Month figures Novem Group S.A.: Q3 2023/24 figures reflect challenging market conditions 15.02.2024 / 09:00 CET/CEST The issuer is solely responsible for the content of this announcement. Novem Group S.A.: Q3 2023/24 figures reflect challenging market conditions

• YTD 2023/24 revenue of €485.8 million, -7.7% below YTD 2022/23
• Adj. EBIT¹ of €54.6 million, -9.8% below PY
• Business environment characterised by continued headwinds

Luxembourg, 15 February 2024 – Novem Group S.A. today published its figures for the third quarter of its financial year 2023/24. In the first nine months of financial year 2023/24, Novem generated a total revenue of €485.8 million, falling short against previous year by -7.7%.

Robust margin amid lower revenue

Revenue Series of €123.1 million declined by -16.5% in Q3 2023/24, primarily influenced by extended customer plant holidays and weak call-offs. Because of a different project phasing, revenue Tooling of €15.7 million also recorded lower than last year (€19.6 million). At constant foreign exchange rates, revenue in Q3 2023/24 would have been higher by €3.4 million or 2.4%. The solid order intake in the current financial year supports the mid-term guidance on revenue growth of 5-6%.

In total, this year’s Q3 revenue decreased by €-28.2 million in all regions compared to last year. By segments, the largest decline was reported in Europe (€-23.3 million year-on-year) due to a weak market demand. Americas showed a slight decrease in revenue (€‑1.8 million year-on-year) caused by Tooling, while Series performed well despite the weakness of the US Dollar. Revenue in Asia (€-3.0 million year-on-year) was negatively affected by several model changes and a slower than expected ramp-up of some platforms.

In Q3 2023/24, the Adj. EBIT of €16.6 million fell short of previous year by €-2.4 million, but at the same time resulted in a solid margin of 12.0% compared to last year (11.4%). Especially the aforementioned inefficiencies led to a mediocre utilisation of several plants. In response to this development, the production facility in Italy was closed and all platforms have been successfully transferred to other European locations. Besides this, the operating result benefited from lower freight expenses as well as reduced input costs such as material and leased workers. Agreed customer compensation payments and the release of accruals also supported the Adj. EBIT.