Zumtobel Group AG: Zumtobel Group with slight improvement in adjusted EBIT in H1 2024/25

Dornbirn (pta008/05.12.2024/07:30) -
* Revenues rise by 0.6% to EUR 577.6 million
* Adjusted EBIT reaches EUR 41.2 million (H1 2023/24: EUR 40.0 million)
* Adjusted EBIT margin increases to 7.1% (H1 2023/24: 7.0%)
* Net profit positive at EUR 18.4 million (H1 2023/24: EUR 21.2 million)
* Outlook confirmed

Revenues recorded by the Zumtobel Group in the first half of the current 2024/25 financial year rose by 0.6% – or by 0.4% after an adjustment for foreign exchange effects. Revenues in the Components Segment continued to stabilise and increased by 3.4% to EUR 157.3 million. In the Lighting Segment, revenues increased by 0.4% to EUR 456.1 million. Operating results also improved slightly: After the first six months of the current financial year, the Zumtobel Group can report adjusted EBIT of EUR 41.2 million (H1 2023/24:
EUR 40.0 million) and an adjusted EBIT margin of 7.1% (H1 2023/24: 7.0%). Net profit for the period totalled
EUR 18.4 million (H1 2023/24: EUR 21.2 million).

"In spite of these satisfactory results after the first half of this financial year, we remain cautious for good reason because the next six months will be challenging. This stems, above all, from the difficult geopolitical situation and the related uncertainties. Construction activity in Europe will decline somewhat stronger in this ongoing difficult economic environment, and competition on the market for professional lighting solutions is still intense", explained Alfred Felder, CEO of the Zumtobel Group.

Positive development in the Northern and Western Europe region
In the D/A/CH region, the core market of the Zumtobel Group, all three countries contributed to the positive development of revenues. Revenues increased substantially year-on-year, especially in the Northern and Western Europe region and primarily due to support from the UK. Revenues in Belgium fell below the previous year. In the Southern and Eastern Europe region, weakness in the Czech Republic and France was the main cause of the decline in revenues. In the Asia & Pacific region, the Components Segment recorded growth in Greater China. The negative development of revenues in the America & MEA region resulted mainly from disappointing sales in the USA.

Improvement in operating results (adjusted EBIT)
In the first half of the current financial year, the adjusted cost of goods sold decreased while inventory revaluations also had a positive effect. Development costs rose by EUR 2.0 million to EUR –34.6 million, and adjusted selling and administrative expenses (incl. research) were EUR 10.5 million higher at EUR –179.1 million. The main drivers were the increase in personnel costs resulting from collective agreements and an outstanding government grant for research projects.

The growth in revenues and an improvement in the materials ratio slightly offset the increase in personnel and other costs. Adjusted EBIT rose from EUR 40.0 million in the previous year to EUR 41.2 million and the adjusted EBIT margin equalled 7.1% (H1 2023/24: 7.0%).

Solid balance sheet structure
The balance sheet structure of the Zumtobel Group remains stable and strong: The equity ratio improved to 43.6% as of 31 October 2024 (30 April 2024: 43.1%). Equity rose by EUR 5.7 million over the level on 30 April 2024 to EUR 430.9 million. Net liabilities increased to EUR 89.5 million as of 31 October 2024 (30 April 2024: EUR 77.1 million).

New cooperation with ABB
The Zumtobel Group continued the systematic pursuit of its corporate strategy during the past six months, also by entering industrial partnerships. In October, the company announced a strategic partnership with the international ABB Group for the development of intelligent building solutions and direct current (DC) applications in the industrial sector. This cooperation – in addition to the partnership with the Siemens subsidiary Enlighted – is designed to significantly expand the Keyture product brand offering for integrated and intelligent lighting solutions for sustainable buildings.

Outlook
The management of the Zumtobel Group continues to see the current geopolitical and economic situation as tense. That makes it difficult to predict economic developments in the 2024/25 financial year. The further course of the war in Ukraine and in the Near East, the development of energy, raw materials and transport prices, continuing higher personnel costs, as well as inflation and interest rate trends will have a significant influence on the global economy and, in turn, on the success of the Zumtobel Group. Against this backdrop and with reference to the above-mentioned uncertainties, the Management Board of Zumtobel Group expects moderate revenue growth at least slightly above the prior year level for the 2024/25 financial year. The adjusted EBIT margin is expected to range from 3% to 6%.

(Ende)