NORMA Group Cites Weak Demand, Economic Uncertainty for Q1 Decline
NORMA Group recorded Group sales of EUR 284.2 million in the first quarter of 2025, reflecting a 7.9% decline compared to the same quarter in 2024 (EUR 308.5 million). Currency effects provided a slight boost of 1.3%. Adjusted EBIT dropped significantly by 59.9% to EUR 10.3 million (Q1 2024: EUR 25.7 million), with the margin falling to 3.6% from 8.3%. Lower sales, limited cost flexibility, and higher expenses related to an IT system rollout at the Maintal plant impacted profitability. However, net operating cash flow improved substantially to EUR 3.1 million, up from EUR -2.3 million a year earlier.
CEO Mark Wilhelms: “We faced an extraordinarily challenging quarter. Uncertainty in the global economy led to weak demand and one-time items had a negative impact on our result. Our business performance did improve, however, over the course of the quarter and I expect the market environment to gradually pick up in the second half of the year. We therefore maintain our forecast for full-year 2025. NORMA Group will consistently move ahead on its path toward becoming a focused industrial supplier.”
Regionally, EMEA sales declined 12.2% to EUR 119.9 million, with a negative EBIT of EUR -1.2 million due to the ERP system launch. In the Americas, sales fell by 3.5% to EUR 130.6 million, while EBIT decreased to EUR 12.8 million. Cold weather and supply chain issues affected performance. Asia-Pacific sales dropped 8.0% to EUR 33.7 million, though Water Management saw growth. EBIT in the region stood at EUR 2.0 million.
NORMA Group will continue its strategic transformation into a focused industrial supplier through the “Step Up” program and new initiatives aimed at growing Industry Applications, cutting admin costs, and optimizing capacities. Plans include completing the Water Management divestment and finalizing the transformation by 2028.
The Annual General Meeting will be held in person in Frankfurt/Main on May 13, 2025.
https://www.normagroup.com/global/en
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