Forecast for Fiscal Year 2025

The Management Board remains committed to the forecast for the full year 2025 announced on March 7, 2025. Based on the assessments of relevant economic research institutes and industry associations presented in the ANNUAL REPORT 2024, the Management Board of NORMA Group expects that overall economic development will remain challenging in the 2025 fiscal year. In particular, ongoing geopolitical tensions are causing uncertainty and high volatility in the market environment. An increasingly looming trade war due to protectionist measures by the US government – such as the introduction of punitive tariffs and the corresponding consequences worldwide – is seen as a potentially negative factor. Negative impulses for global economic development are also still expected from further developments in the Ukraine war and the Middle East, as well as the associated impacts on global value and transport chains. Due to the continuing difficult environment, the Management Board of NORMA Group SE is approaching fiscal year 2025 with due caution. In particular, the precise consequences of the special tariffs, some of which have been announced, some of which have been implemented, and some of which have been suspended, as well as any other trade policy restrictions, cannot be conclusively assessed at the time of publication of this interim report, as external decision-making processes and announcements of the measures are subject to considerable volatility. Accordingly, they are only included in the following forecast to the extent that they had already been decided on March 7, 2025.

 

Development of Group Sales in Fiscal Year 2025

Against the backdrop of the persistently volatile general conditions, the Management Board of NORMA Group expects that business development will continue to be characterized by subdued demand, particularly in the first half of 2025. In contrast, the second half of 2025 is expected to see a revival of business in some of NORMA Group's relevant customer industries. Taking the factors mentioned here into account, the Management Board anticipates Group sales for the 2025 fiscal year in the range of approximately EUR 1.1 billion to approximately EUR 1.2 billion. However, this forecast is based on the assumption that no further negative factors arise worldwide during 2025 that could place significant pressure on NORMA Group's business development.

 

 

Adjusted EBIT Margin

One focus of NORMA Group is on maintaining and expanding profitability. Accordingly, all business activities are strategically aligned with this goal. The Group's profitability is to be sustainably increased through, among other things, appropriate operational efficiency measures, for example within the “Step Up” growth and efficiency program. This includes, for example, continuous optimization of operational business processes aimed at aligning the Group for sustainable profitable growth and further improving and maintaining NORMA Group's competitiveness in the long term. The measures from the "Step Up" program are to be continued in fiscal year 2025, which is expected to have a positive impact on earnings development. At the same time, it can be assumed that the declining sales trend since the fourth quarter of 2024 and influenced by external factors will also be reflected in the EBIT margin, especially in the first half of 2025. In addition, the development of the adjusted EBIT margin in 2025 is influenced by expenses related to the early departure of former CEO Guido Grandi, announced on February 17, 2025.

Against this backdrop, the Management Board expects an adjusted EBIT margin of approximately 6% to approximately 8% for the 2025 fiscal year. The forecast for the adjusted EBIT margin is subject to the assumption that no massively adverse market conditions arise that could potentially lead to significant additional costs or restrictions in the implementation of operational efficiency measures.

With regard to the adjustment of earnings, the Management Board expects, as in previous years, that depreciation and amortization of tangible and intangible assets in connection with purchase price allocations in the context of past business combinations will be taken into account. These will total approximately EUR 15 million in the 2025 fiscal year, depending on exchange rate developments.

In addition, on the one hand transaction costs totaling approximately EUR 20 million are expected in connection with the sale of the global Water Management business. On the other hand, extraordinary expenses are expected for an organizational transformation, the exact amount of which cannot yet be estimated. The company intends to adjust all extraordinary expenses in the operating result (EBIT).

 

Net operating cash flow

Assuming continued positive effects in working capital management, net operating cash flow is expected to reach a value in the range of approximately EUR 75 million to approximately EUR 95 million in fiscal year 2025.

 

NORMA Value Added (NOVA)

For fiscal year 2025, the Management Board expects a NOVA in the range of approximately EUR -40 million to approximately EUR -20 million.

 

 

Carbon dioxide emissions

The sustainable reduction of greenhouse gas emissions (GHG emissions) at its global sites is a key objective for NORMA Group. The target for fiscal year 2025 is to avoid 1,000 tons of greenhouse gas emissions through the implementation of measures. This target includes not only the production sites but also NORMA Group's distribution centers. In addition, the value of 1,000 tonnes of GHG emissions refers to both Scope 1 and Scope 2 emissions combined.