Novem Group S.A.

Latest Results (14.08.2024):

Revenue Decline

Novem Group S.A. reported a total revenue of €140.1 million for the first quarter of financial year 2024/25, marking a significant decline of €-35.1 million or -20.0% compared to the same period last year. This decrease was primarily influenced by muted demand, especially in Europe, and a strong US Dollar partly offset by a weak Chinese Renminbi.

Segmental Revenue

In the first quarter of 2024/25, Novem Group S.A.'s revenue was primarily generated in the Americas (€75.1 million), followed by Europe (€50.6 million) and Asia (€14.4 million). Revenue Series, which contributed 85.5% of total revenue, amounted to €119.8 million, a decline of -20.6% year-on-year. Revenue Tooling contributed €20.3 million, showing a year-on-year decrease of -16.1%.

Adjusted EBIT

Novem Group S.A. reported an Adjusted EBIT of €14.2 million for Q1 2024/25, resulting in a margin of 10.1%, down from 11.4% in the previous year. Despite the lower turnover, the company managed to maintain a solid double-digit margin through cost-cutting measures and restructuring efforts in a challenging market environment.

Cost of Materials and Personnel Expenses

The cost of materials for Novem Group S.A. decreased by -15.4% from €-80.4 million in Q1 2023/24 to €-68.0 million in Q1 2024/25, mainly driven by lower revenue. Personnel expenses also saw a reduction, standing at €-39.4 million, a decrease of -9.2% compared to the same period last year, primarily due to lower revenue and inefficiencies from volatile customer call-offs.

Financial Result

For the first quarter of financial year 2024/25, Novem Group S.A. reported a financial result of €-8.6 million, a significant decline from €-2.4 million in the previous year. This was due to a decrease in finance income from €2.0 million to €1.3 million and an increase in finance costs from €-4.4 million to €-9.9 million, driven by foreign currency translation effects and higher interest expenses.