Notes to the Asset and Financial Position

Total assets

Total assets amounted to EUR 1,416.0 million as at the reporting date of March 31, 2025, an decrease of 1.4% compared to the end of 2024 (Dec 31, 2024: EUR 1,436.6 million). Compared to March 31, 2024 (EUR 1,515.5 million), total assets decreased by 6.6%.

Non-current assets

Non-current assets amounted to EUR 870.6 million as at March 31, 2025, a slight decrease of 3.3% compared to the end of 2023 (Dec 31, 2024: EUR 900.7 million). The decrease was mainly due to write-downs on intangible assets and property, plant, and equipment, which more than offset capital expenditures. In addition, negative currency effects reduced goodwill (-2.2%). Non-current assets accounted for 61.5% of total assets as at the reporting date of March 31, 2025 (Dec 31, 2024: 62.7%).

A total of EUR 9.6 million was invested in fixed assets in the period from January to March 2025 (Q1 2024: EUR 9.4 million). In addition, EUR 1.5 million (Q1 2024: EUR 1.9 million) was recognized as additions to fixed assets for the capitalization of rights of use for rented land and buildings, including as part of exercised extension options. Capital expenditures included own work capitalized in the amount of EUR 1.4 million (Q1 2024: EUR 1.2 million). The focus of investing activities in the first quarter was on the United States, Germany and in China. There were no significant disposals.

Current assets

Current assets amounted to EUR 545.4 million as at the reporting date, an increase of 1.8% compared to the end of 2024 (Dec 31, 2024: EUR 535.9 million). Compared to the previous year’s reporting date, current assets decreased by 11.1% (March 31, 2024: EUR 613.5 million). Current assets accounted for 38.5% of total assets as at March 31, 2025 (Dec 31, 2024: 37.3%), and therefore increased slightly.

(Trade) working capital increased

(Trade) working capital (inventories plus receivables minus payables, in each case mainly trade receivables and trade payables) amounted to EUR 248.6 million as of March 31, 2025, and was therefore 5.1% higher than at the end of 2024 (Dec 31, 2024: EUR 236.5 million). Despite the increase in trade payables as of March 31, 2025 (Mar 31, 2025: EUR 149.2 million; Dec 31, 2024: EUR 142.8 million) and the decrease in inventories (Mar 31, 2025: EUR 214.8 million; Dec 31, 2024: EUR 219.9 million), the trade working capital increased due to the significantly higher level of trade receivables compared to the end of 2024 (Mar 31, 2025: EUR 183.0 million; Dec 31, 2024: EUR 159.4 million).

Compared to the previous year (March 31, 2024: EUR 272.1 million), (trade) working capital fell by 8.6%. The main driver compared with the previous year’s reporting date was the 11.3% decline in trade receivables (Mar 31, 2025: EUR 183.0 million; Mar 31, 2024: EUR 206.3 million) and a 3.7% decrease in inventories (Mar 31, 2025: EUR 214.8 million; Mar 31, 2024: EUR 223.0 million). This effect was offset by the simultaneous reduction in trade payables and similar liabilities (Mar 31, 2025: EUR 149.2 million; Mar 31, 2024: EUR 157.2 million).

 

Other non-financial assets

Other non-financial assets were as follows:

Equity ratio remains at a high level

Group equity amounted to EUR 698.2 million as of March 31, 2025, an decrease of 3.2% compared to the end of 2024 (Dec 31, 2024: EUR 721.4 million). The equity ratio was 49.3% as at the quarterly reporting date (Dec 31, 2024: 50.2%). The development of equity is due in particular to the decrease in other reserves owing to negative currency translation differences (EUR -19.2 million) and the decrease in retained earnings due to a negative result for the period (EUR -3.9 million).

Net debt increased slightly

Net debt amounted to EUR 337.6 million as of March 31, 2025, after EUR 329.2 million at the end of 2024, which corresponds to an increase of 2.6% or EUR 8.4 million. This was mainly due to the net cash outflows from the total cash inflows from operating activities of EUR 5.0 million and the net cash outflows from the acquisition and disposal of non-current assets of EUR 10.4 million.

On the other hand, current interest expenses and additions in the area of right-of-use assets increased net debt in the first three months of fiscal year 2025. Cash-neutral net currency effects on financial liabilities as well as cash and cash equivalents had a reducing effect on net debt as at March 31, 2025.

Gearing (net debt in relation to equity) was 0.5 and thus at the same level as at the end of 2024 (Dec 31, 2024: 0.5). With the increase in net debt in the first quarter of 2025, leverage (net debt excluding hedging derivatives in relation to adjusted EBITDA for the last twelve months) amounted to 2.4 (Dec 31, 2024: 2.1).

Net debt of NORMA Group is as follows:

Financial debt

At EUR 446.0 million, NORMA Group’s financial liabilities as of March 31, 2025, were 2.3% lower than the level of December 31, 2024 (EUR 456.3 million).

The loans changed primarily due to currency effects, as no payments or repayments were made during the first quarter of 2025 (Q1 2024: payments of EUR 11 million).

Lease liabilities reduced slightly compared to the end of 2024. The changes resulting from repayments (payment of lease installments) exceeded the additions in the area of right-of-use assets. Reassessments of extension options and contract changes, as well as interest effects during the first quarter and exchange rate effects primarily on liabilities in US dollars – from subsidiaries in the US – had an additional reducing effect.

The decrease in other financial liabilities was chiefly the result of the drop in liabilities from the ABS and factoring programs.

Non-current liabilities amounted to EUR 447.9 million as of March 31, 2025, a decrease of 1.7% or EUR 7.9 million compared to the end of 2024 (Dec 31, 2024: EUR 455.8 million). Current liabilities amounted to EUR 269.9 million as at the reporting date of the current reporting quarter, a increase of 4.0% or EUR 10.4 million compared to December 31, 2024 (EUR 259.5 million).

The maturities of the syndicated loans and the promissory note loans as of March 31, 2025, were as follows:

Other non-financial liabilities

Other non-financial liabilities were as follows:

Derivative financial instruments

Foreign currency derivatives

As of March 31, 2025, foreign currency derivatives with a positive market value of EUR 0.7 million were held to hedge changes in fair value and to hedge cash flows of EUR 0.2 million. Furthermore, foreign currency derivatives with a negative market value totaling EUR 0.2 million were held to hedge cash flows and EUR 0.1 million to hedge changes in fair value.

The foreign currency derivatives used to hedge cash flows are used to hedge against fluctuations in the exchange rate arising from operating activities. Foreign currency derivatives used to hedge changes in fair value are used to hedge external financing liabilities, bank balances denominated in foreign currencies, and intercompany monetary items against fluctuations in the exchange rate.

Interest rate hedges

Parts of NORMA Group’s external financing were hedged against interest rate fluctuations using interest rate swaps. Interest rate hedges with a positive fair value of EUR 2.6 million were held on March 31, 2025.