Grammer AG

Latest Results (14.08.2024):

Decline in Earnings

Grammer AG reported a decline in earnings for the first quarter of 2024 compared to the same period in the previous year. Earnings before interest and taxes (EBIT) fell to approximately EUR 3.9 million, down from EUR 11.7 million in Q1 2023. Operating EBIT, adjusted for positive currency effects of around EUR 1.5 million, amounted to about EUR 2.4 million, a significant drop from EUR 13.9 million in the first quarter of 2023.

Revenue Decrease

Group revenue for Grammer AG in the first quarter of 2024 decreased by EUR 32.5 million compared to the same period in the previous year. The revenue for Q1 2024 was around EUR 556.6 million, down from EUR 589.1 million in Q1 2023. This decline in revenue was a major factor impacting the company's earnings performance.

Impact of Higher Costs

Grammer AG's operating earnings in the first three months of 2024 were adversely affected by higher costs. These costs were associated with volatile capacity utilization at plants, ramp-up costs at the new commercial vehicle plant in the US, and currency losses. These factors contributed to the overall decline in the company's financial performance for the quarter.

Regional Revenue Decline

Revenue in the EMEA and APAC regions for Grammer AG was lower than expected in the first quarter of 2024. This decline was attributed to weaker demand from manufacturers, which was influenced by significant and ongoing macroeconomic and industry-specific uncertainties. The reduced demand in these regions further impacted the company's overall revenue.

Full-Year Guidance Maintained

Despite the challenges faced in the first quarter of 2024, Grammer AG's Executive Board is maintaining its full-year guidance as published in the 2023 Annual Report. The company expects group revenue to be around EUR 2.3 billion and operating EBIT to be approximately EUR 75 million for the full year. The interim management statement for the first quarter of 2024 will be published on April 29, 2024.