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EQS-News: Novem Group S.A. / Key word(s): Quarter Results/9 Month figures
Novem Group S.A.: Q3 2023/24 figures reflect challenging market conditions
2024-02-15 / 09:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
Novem Group S.A.: Q3 2023/24 figures reflect challenging market conditions
. YTD 2023/24 revenue of EUR485.8 million, -7.7% below YTD 2022/23
. Adj. EBIT^1 of EUR54.6 million, -9.8% below PY
. Business environment characterised by continued headwinds
Luxembourg, 15 February 2024 - Novem Group S.A. today published its figures for the third quarter of its financial year
2023/24. In the first nine months of financial year 2023/24, Novem generated a total revenue of EUR485.8 million, falling
short against previous year by -7.7%.
Robust margin amid lower revenue
Revenue Series of EUR123.1 million declined by -16.5% in Q3 2023/24, primarily influenced by extended customer plant
holidays and weak call-offs. Because of a different project phasing, revenue Tooling of EUR15.7 million also recorded
lower than last year (EUR19.6 million). At constant foreign exchange rates, revenue in Q3 2023/24 would have been higher
by EUR3.4 million or 2.4%. The solid order intake in the current financial year supports the mid-term guidance on revenue
growth of 5-6%.
In total, this year's Q3 revenue decreased by EUR-28.2 million in all regions compared to last year. By segments, the
largest decline was reported in Europe (EUR-23.3 million year-on-year) due to a weak market demand. Americas showed a
slight decrease in revenue (EUR-1.8 million year-on-year) caused by Tooling, while Series performed well despite the
weakness of the US Dollar. Revenue in Asia (EUR-3.0 million year-on-year) was negatively affected by several model
changes and a slower than expected ramp-up of some platforms.
In Q3 2023/24, the Adj. EBIT of EUR16.6 million fell short of previous year by EUR-2.4 million, but at the same time
resulted in a solid margin of 12.0% compared to last year (11.4%). Especially the aforementioned inefficiencies led to
a mediocre utilisation of several plants. In response to this development, the production facility in Italy was closed
and all platforms have been successfully transferred to other European locations. Besides this, the operating result
benefited from lower freight expenses as well as reduced input costs such as material and leased workers. Agreed
customer compensation payments and the release of accruals also supported the Adj. EBIT.
Stable capex development
Free cash flow^1 turned slightly negative at EUR-3.9 million for the reporting period and recorded well below last year's
figure (EUR24.6 million), mainly resulting from increased working capital^1.
Capital expenditure^1 of EUR4.6 million for the third quarter remained almost flat compared to previous year (EUR4.7
million), with a large portion invested in China. The overall underlying capex ratio rose to 3.3% (PY: 2.8%) because of
lower revenue.
Increased working capital and net leverage ratio
As of 31 December 2023, total working capital^1 of EUR149.2 million recorded 8.8% higher than last year. The deviation of
EUR-12.1 million compared to prior year was mainly attributable to lower trade payables as well as higher tooling net.
Gross financial debt^1 of EUR307.4 million increased by EUR25.0 million compared to the third quarter of previous year,
primarily due to the extension of existing lease contracts in Querétaro. Compared to last year, net financial debt^1 as
of 31 December 2023 rose to EUR182.3 million. This resulted in a net leverage ratio^1 of 1.7x Adj. EBITDA^1 (PY: 1.3x).
The quarterly statement for the third quarter of financial year 2023/24 can be found on the Investor Relations website
at Reports & Presentation.
_______________________
1 For the definition/calculation of the used Alternative Performance Measures (APMs), please refer to the glossary
provided in the corresponding quarterly statement for the third quarter of financial year 2023/24, 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 Vorbach, Germany, back in 1947, the Company has continuously expanded its global
footprint in Germany, Italy, Czech Republic, Slovenia, China, USA, Honduras and Mexico. Novem employs about 5,500
people at 12 locations and achieved revenue of around EUR700 million in FY 2022/23.
For more information, please visit www.novem.com.

Contact Investor Relations           Press Contact 
Mareike Völker                       Isabel Henninger 
Head of Investor Relations           Phone: +49 69 506 037 583 
Phone: +49 9205 18 1399              E-Mail: isabel.henninger@kekstcnc.com 

E-Mail: investor.relations@novem.com
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2024-02-15 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com

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Language:     English 
Company:      Novem Group S.A. 

19, rue Edmond Reuter
L-5326 Contern
Luxemburg

ISIN:         LU2356314745 
WKN:          A3CSWZ 
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, 

Munich, Stuttgart, Tradegate Exchange; Luxembourg Stock Exchange
EQS News ID: 1837229

End of News EQS News Service
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1837229 2024-02-15 CET/CEST

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February 15, 2024 03:00 ET (08:00 GMT)