Zumtobel Group (ZAG) Q4 23/24 earnings summary

Executive summary

• Group revenues declined by 6.8% to EUR 1.127 billion for FY 2023-2024, mainly due to lower volumes and weak performance in the Components Segment.

• Adjusted EBIT fell to EUR 57.3 million from EUR 84.3 million, impacted by lower sales and higher personnel costs.

• Net profit totaled EUR 24.7 million, down from EUR 60.0 million year-over-year.

• Dividend proposal of EUR 0.25 per share, payout ratio at 44%.

• Maintained a solid balance sheet with an equity ratio of 43.1%.

Financial highlights

• Adjusted gross profit reached EUR 403.3 million, margin up to 35.8% from 34.7% year-over-year.

• Adjusted EBIT margin for the year at 5.1%; Q4 margin at 4%.

• Earnings per share for the year at EUR 0.57, down from EUR 1.39.

• Free cash flow increased to EUR 53.8 million from EUR 52.3 million.

• Working capital at EUR 225.6 million, 20% of rolling 12-month revenues.

Outlook and guidance

• Revenue growth for FY 2024-2025 expected to be at least slightly above prior year.

• Adjusted EBIT margin forecasted between 3%-6%; CapEx planned at around EUR 60 million.

• Market remains volatile due to geopolitical and economic uncertainties, with growth anticipated in renovation and maintenance segments.