Novem Group S.A.: HY 2024/25 figures reflect continued adverse market environment

• HY 2024/25 revenue of €279.5 million, ‑19.5% below HY 2023/24
• Adj. EBIT¹ of €26.2 million, -31.1% below PY
• Short-term adversities persist, but mid-term guidance supported by firm YTD order intake

Luxembourg, 14 November 2024 – Novem Group S.A. today published its half-year figures for the financial year 2024/25. In a continued challenging trading environment, Novem generated a total revenue of €279.5 million, thus equalling a decline over previous year by -19.5%.

Revenue adversely affected by weak demand in Europe and Asia

In the second quarter of financial year 2024/25, revenue Series of €119.5 million fell short of prior year by -20.1%, mainly attributable to the ongoing poor customer call-offs. Revenue Tooling of €19.9 million also recorded a decline of -10.9% in comparison to last year. On a segmental basis, revenue in Europe (€-28.4 million y/y) decreased compared to previous year as a result of the continued lacklustre demand. In comparison, revenue in Americas (€+3.0 million y/y) developed favourably on the back of higher Tooling revenue. Lower revenue in Asia (€-7.2 million y/y) was negatively impacted by model changes.

Adj. EBIT of €12.0 million in Q2 2024/25 came in below prior year and translated into an Adj. EBIT margin¹ of 8.6% (PY: 10.4%). Again, the operational result was adversely affected by the weak revenue development especially in Europe and Asia as well as a disadvantageous product mix and model changes. However, customer compensation payments and further improved input costs supported the bottom line.

Elevated capex level in preparation for future business

For the reporting period, free cash flow¹ of €3.6 million decreased against last year (€22.3 million). The decrease was mainly caused by lower cash flow from operating activities as a consequence of the muted market demand and therefore lower profit. Apart from that, free cash flow was adversely affected by reduced provisions, increased inventories and lower trade payables.

In Q2 2024/25, capital expenditure¹ of €4.5 million remained on a comparable level as prior year (€4.6 million) and was primarily characterised by growth investments. In light of the lower revenue, the underlying capex ratio rose to 3.3% compared to last year’s figure of 2.7%.

Increased net leverage ratio

As of 30 September 2024, total working capital¹ of €139.3 million stood slightly higher than previous year (€136.3 million). The deviation of €-3.0 million was mainly attributable to lower trade payables and higher tooling net.

Gross financial debt¹ amounted to €301.9 million and rose by €13.2 million compared to the reporting date of prior year (€288.8 million), mainly due to a significant increase in lease liabilities. As of 30 September 2024, net financial debt¹ of €169.5 million was higher than last year’s level of €152.2 million. Consequently, the net leverage ratio¹ of 1.9x Adj. EBITDA¹ exceeded previous year’s level (1.4x).

The interim statement for the first half of the financial year 2024/25 can be found on the Investor Relations website at Reports & Presentation.

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1   For the definition/calculation of the used Alternative Performance Measures (APMs), please refer to the glossary provided in the corresponding interim statement for the first half of financial year 2024/25, which can be found on the Investor Relations website under Reports & Presentation.

About Novem

Luxembourg-headquartered Novem is a globally leading supplier of decorative interior trim parts for the premium automotive industry. Across the range of key materials such as genuine wood, aluminium, carbon and premium synthetics, the Company offers unrivalled quality, technology and innovation to a growing customer base including all major premium carmakers worldwide. Founded in 1947 in Vorbach, Germany, the Company has continuously expanded its global footprint in Germany, Italy, Czech Republic, Slovenia, China, USA, Honduras and Mexico. Novem employs about 4,900 people at 12 locations and achieved revenue of more than €635 million in FY 2023/24.

For more information, please visit www.novem.com.