Norrhydro Group (NORRH) H2 2024 earnings summary

Executive summary

• Turnover for 2024 declined 20.2% year-over-year to EUR 24.2 million, reflecting a challenging market environment and cautious customer investment decisions.

• EBITDA improved 19.3% to EUR 1.26 million, with margin rising to 5.2% from 3.5% despite lower sales.

• Operating loss narrowed to EUR -85 thousand from EUR -258 thousand, and net loss was EUR -1.32 million.

• The company continued investing in digital product development, with NorrDigi MCC and EMA products reaching maturity and commercialization planned for 2025.

• No dividend proposed for 2024.

Financial highlights

• Turnover: EUR 24.2 million (down 20.2% year-over-year); H2 turnover EUR 11.1 million (down 7.7%).

• EBITDA: EUR 1.26 million (up 19.3%); EBITDA margin 5.2% (3.5%).

• Operating loss: EUR -85 thousand (improved from EUR -258 thousand); operating margin -0.3%.

• Net loss: EUR -1.32 million (EUR -1.44 million prior year); EPS EUR -0.120 (EUR -0.133).

• Cash flow from operations: EUR 878 thousand (EUR 306 thousand prior year).

• Adjusted EBITDA: EUR 2.33 million; adjusted EBITDA margin 7.7%.

Outlook and guidance

• Net sales and EBITDA for 2025 expected to exceed 2024 levels.

• Long-term targets for 2028: net sales over EUR 70 million, digital products >30% of sales, EBITDA margin at least 16%.

• Focus in 2025 will shift from digital product development to commercialization and sales.