Norma Group (NOEJ) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales declined 7.9% year-over-year to EUR 273.6 million amid volatile markets, with efficiency measures and the Step Up program supporting margins.

• Americas and Water Management segments remained solid, while EMEA and APAC experienced significant volume declines, especially in Mobility & New Energy.

• Consolidated sales for Q1–Q3 2024 were EUR 888.4 million, down 5.1% year-over-year, mainly due to weaker demand and negative currency effects, partially offset by the Teco acquisition.

• Adjusted EBIT was EUR 20.9 million (7.7% margin) in Q3, and EUR 72.8 million (8.2% margin) for Q1–Q3 2024.

• Step Up program advanced with over 1,800 efficiency actions identified and two-thirds implemented, focusing on operational efficiency and cost control.

Financial highlights

• Q3 2024 revenue was EUR 273.6 million, a 7.9% decline compared to Q3 2023; adjusted EBIT was EUR 20.9 million (7.7% margin).

• Net operating cash flow in Q3 2024 was EUR 28.2 million, down from EUR 38.6 million in Q3 2023; for Q1–Q3 2024, it improved to EUR 69.4 million.

• Equity ratio improved to 48.1% as of September 30, 2024, from 46.4% at end-2023.

• Net financial debt decreased 2.2% vs. end-2023 and 15.6% vs. September 2023; leverage reduced to 2.2x.

• Gross margin improved to 57.6% for Q1–Q3 2024 due to lower material and logistics costs.

Outlook and guidance

• Full-year 2024 group sales expected around EUR 1.2 billion, at the lower end of guidance.

• Adjusted EBIT margin forecasted at around 8%, also at the lower end of prior guidance.

• EMEA sales expected between EUR 480–500 million, Americas EUR 540–550 million, APAC/Asia-Pacific EUR 140–150 million.

• Net operating cash flow projected at EUR 80–110 million.

• Step Up program to continue driving efficiency and margin improvements, with a midterm sales mix shift target.