NORMA Group has presented its preliminary figures for the financial year 2023 and the fourth quarter of 2023. With slightly lower sales, the company achieved stable profitability and strong cash flow.
CEO Guido Grandi comments: “We achieved a sound result in 2023 in a challenging environment. We enhanced the efficiency of our operating business more; mitigated the effects of inflation related cost increases; and attracted new customers for our innovative joining technology. In the second half of the year, our improvement measures took effect, so that we achieved a significant increase in earnings in the fourth quarter compared to the previous year. Overall, we achieved a stable margin and considerably increased cash flow.”
Preliminary, unaudited figures put NORMA Group sales in the financial year 2023 at €1.223 billion. Compared to the previous year, the company achieved organic growth of 0.7%. Negative currency effects, however, slowed sales growth by 2.4%. Overall, Group sales were down slightly, declining 1.6% compared to the previous year (2022: €1.243 billion).
Net operating cash flow improved significantly compared to the previous year, reaching €87.3 million (2022: €65.3 million). The primary driver of the strong cash inflow was the lower (trade) working capital, as a result of consistent liquidity management and optimised inventory management.
Earnings and margin improved in Q4
According to preliminary figures, sales in the period from October to December 2023 fell organically by 1.7% compared to the same quarter of the previous year. This is partly due to a temporary reduction in order ‘call offs’ in the USA following widespread strikes at US vehicle manufacturers in the fall of 2023. Negative currency effects also reduced growth in the fourth quarter by 3.4%. Overall, Group sales dipped 5.1% compared to the same quarter of the previous year to €286.7 million (Q4 2022: €302.1 million).
Greater efficiency is the foundation for further growth
Guido adds: “Our development expertise combined with our global presence makes us a strong partner for our customers in different markets and countries. I am confident that we will be able to generate further profitable growth in our three strategic business units of Water Management, Industry Applications and Mobility & New Energy. With our ‘Step Up’ improvement programme, we have laid an important foundation in this regard and have already seen initial successes.”
Will joined Fastener + Fixing Magazine in 2007 and over the last 15 years has experienced every facet of the fastener sector - interviewing key figures within the industry and visiting leading companies and exhibitions around the globe.
Will manages the content strategy across all platforms and is the guardian for the high editorial standards that the Magazine is renowned.
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