General Statement of the Management Board on the Course of Business and the Economic Situation
NORMA Group performed well in a challenging environment in the first half of 2023 achieving EUR 639.0 million, thus exceeding the comparative previous year’s figure (H1 2022: EUR 622.3 million) by 2.7%. The growth in the first six months of 2023 was mainly due to a 3.1% increase in organic revenue, which was primarily achieved by price increase initiatives. Currency effects reduced revenues by 0.4%. Demand in the EMEA region recovered visibly year-on-year in the first six months of 2023 based on a mix of good volume business and positive price effects. This development more than compensated for both the water business, which was subdued in the Americas compared with the exceptionally good previous year, and the weak business in the Asia-Pacific region due to currency effects.
Overall, the operating earnings figures developed as expected. Adjusted EBIT reached EUR 49.7 million in the first half of 2023 (H1 2022: EUR 52.7 million). The adjusted EBIT margin amounted to 7.8% (H1 2022: 8.5%). Net operating cash flow in the first six months of 2023 was negative at EUR -12.9 million (H1 2022: EUR 9.8 million). This development is due to a higher build-up of (trade) working capital in relation to EBITDA in the reporting period compared to the end of 2022 as well as higher investments.
Based on the information that this report is based on, the Management Board expects the business environment to remain challenging in the second half of 2023. Based on the positive trend forecasts in the customer industries and (sub-)markets of relevance to NORMA Group, however, the Management Board expects the key performance indicators to develop in fiscal year 2023 as last communicated in the 2022 Annual Report and confirmed in the interim announcement on the first quarter of 2023. Detailed information on all other components of the forecast can be found in the FORECAST REPORT.