Zumtobel Group (ZAG) Q1 24/25 earnings summary

Executive summary

• Group revenues increased 1.2% year-over-year to €289.1 million, driven by growth in the UK, Austria, Croatia, and strong refurbishment projects.

• Adjusted EBIT rose to €20.2 million (up 39.5%), with margin improving to 7.0% from 5.1%, reflecting improved material ratios and positive country mix effects.

• Net profit for the period increased 30.3% to €12.8 million; EPS rose to €0.30 from €0.23.

• Adjusted gross profit margin improved to 38.5% (prior year: 35.9%), driven by high-margin country sales and lower raw material costs.

• Refurbishment projects, especially in Europe, contributed significantly to growth, with notable wins in the U.K., France, and Austria.

Financial highlights

• Lighting segment revenue reached €226.6 million (+1.1%), with adjusted EBIT up to €20.1 million (8.9% margin).

• Components segment revenue grew 4.3% to €80.3 million, with adjusted EBIT more than doubling to €4.7 million (5.9% margin).

• Adjusted EBITDA increased 15.5% to €33.4 million; EBITDA margin at 11.1%.

• Cash flow from operating activities improved to €32.4 million; free cash flow was €-11.2 million due to higher investments.

• Equity ratio improved to 43.5%; net debt increased to €93.3 million, with gearing at 21.3% and debt coverage ratio of 0.86.

Outlook and guidance

• Sales for FY 2024/25 expected to be at least slightly above previous year, with adjusted EBIT margin guidance of 3%–6%.

• CapEx spending projected at around €60 million, mainly for the new trunking system ramp-up and product upgrades.

• Market recovery anticipated in the second half of 2025, with continued momentum in refurbishment offsetting weak new construction.

• Geopolitical tensions, slow construction recovery, and inflation remain key uncertainties.