Novem Group S.A.: Preliminary Results 2023/24 Influenced by Weak Market Conditions

Novem Group S.A. released its preliminary results for the financial year 2023/24, reporting total revenue of €635.5 million, a 9.3% decrease compared to the previous year. The adjusted EBIT stood at €69.1 million, down 15.5%. Despite tough market conditions, the company maintained an adjusted EBIT margin of 10.9%.

The fourth quarter showed mixed regional performance. European revenues declined by €16.7 million due to platform underperformance and structural issues in electric vehicles. In contrast, the Americas saw a €5.8 million revenue increase, largely driven by the tooling business. In Asia, revenues fell by €13.4 million due to model changes and weak new program launches.

Novem achieved a free cash flow of €24.2 million in Q4 2023/24, although this was lower than the previous year's €39.6 million. For the full year, free cash flow was €53.8 million, down 36.4%. Capital expenditure dropped to €3.5 million in Q4 from €5.7 million the previous year.

Looking ahead, Novem's strong order intake provides positive prospects. Highlights include a significant contract award from Tesla, marking their entry into the premium exterior trim market. The company's net leverage ratio improved sequentially, though it remains higher than the previous year.