NORMA Group achieves slight growth despite challenging environment 25 March 2020

NORMA Group increased Group sales by 1.5% to approximately €1.1 billion in the fiscal year 2019 (2018: €1.084 billion). Organic sales revenues declined by 2 percent due to the persistently difficult situation in the automotive industry and declining production and sales figures.

In contrast, positive sales contributions came from the DS division (Distribution Services), especially the water business in the USA. The acquisitions of Kimplas and Statek contributed 1.2% to growth. Positive currency effects also increased sales by 2.3%.

“NORMA Group’s sales in fiscal year 2019 declined in organic terms. The volatile market environment and tense geopolitical situation had a negative impact on our business,” said Dr Friedrich Klein, chief operating officer of NORMA Group. “The consequences of the spread of Covid-19 cannot be assessed at this point in time and have an impact on our business. We are currently taking all measures necessary to protect our employees, maintain our supply chain and ensure our liquidity. In the long term, we are well positioned thanks to our broad product portfolio and our global business activities. We will continue to focus our business model on the future markets of water management and electromobility.”

In the EMEA region, sales in fiscal year 2019 fell by 1.8% compared to the previous year to €486 million (2018: €494.8 million). Both the weak development on the European automotive business and the stagnation in the DS division had an impact on how sales developed.

In the Americas region, NORMA Group achieved slight sales growth of 2.1% in 2019 and increased its sales to €450.8 million (2018: €441.5 million). NDS’s strong water business, in particular, drove sales, while the EJT (Engineered Joining Technology) business was negatively impacted by strikes at customers in the car and truck industries.

In the Asia-Pacific region, NORMA Group increased its sales by 10.5% in 2019 to €163.4 million (2018: €147.8 million). This was mainly due to the strong growth in the second half of the year, which was characterised by a revival of business and winning new orders in China.

Forecast for 2020 influenced by Covid-19
The speed of the spread of Covid-19 and the associated economic consequences were not yet foreseeable for NORMA Group at the time that the forecast was prepared for the Annual Report. The temporary production interruptions in the EMEA and Americas regions, which were necessary in light of the latest developments and in order to protect the company’s employees, affect the outlook for NORMA Group’s sales and earnings performance. As a result, NORMA Group assumes that there will be negative deviations from the forecast for fiscal year 2020 published in the Annual Report. NORMA Group does not expect to achieve its original forecast of around -2% to around -4% in terms of organic Group sales development. The adverse effects of the corona crisis and the measures that have become necessary as a result will also have a negative impact on the Group’s profitability. NORMA Group therefore assumes that the adjusted EBITA margin of over 13% percent (2019: 13.2%; 2018: 16%) targeted for fiscal year 2020 will not be achieved.

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