NORMA Group grew slightly and improved its profitability in the second quarter of 2023. A marked increase in demand from the automotive industry and targeted price management were key growth drivers, more than compensating for lower demand in the water management sector.
Figures showed that NORMA Group sales were up 1.9% over Q2 of 2022 to €324 million (Q2 2022: €317.9 million). Organically, the company grew by 4% from April to June 2023. Negative currency effects in connection with the US dollar reduced sales growth by 2%. Net operating cash flow was €31.9 million in the second quarter of 2023, an improvement compared with the same quarter last year (Q2 2022: €26.4 million).
Guido Grandi, CEO at NORMA Group, commented: “We delivered a successful second quarter and launched the first initiatives from our ‘Step Up’ growth programme. We improved our profitability both versus the prior year quarter and compared to the first quarter of 2023. We also managed to cushion the impact of inflation. Our global presence and broad-based portfolio of joining technology for vehicles, water management, mechanical engineering, and other industries, make us extremely robust – and that is proving beneficial in what is currently a sluggish overall economic environment.”
Strong growth in Europe and Asia, but decline in the Americas
In the EMEA region, the growth trend experienced in the first quarter of 2023 continued. Sales in the second quarter of 2023 showed a significant increase of 12.4% over the prior year to €136.6 million (Q2 2022: €121.6 million). Negative currency effects reduced growth marginally by 0.3%. The strong organic growth of 12.7% is primarily attributable to a strong recovery in the automotive industry and an upturn in demand for joining solutions for all types of passenger cars. Sales also increased in the area of industry applications.
In the Americas region, sales in the second quarter of 2023 fell by 6.9% year-on-year to €144.5 million (Q2 2022: €155.3 million). Organically, sales decreased by 5.2%; currency effects reduced sales by an additional -1.8%. Sales of joining technology for cars and commercial vehicles were lower following a strong prior year quarter. Business with water management products was also lower following a very strong prior year quarter, but improved compared to the first three months of 2023.
In the Asia-Pacific region, sales grew by 4.5% year-on-year to €42.9 million in the second quarter (Q2 2022: €41.1 million). Organically, sales showed strong growth of 12.5%; negative currency effects reduced sales growth by 8.1%. Demand for joining technology from Chinese automotive manufacturers in particular increased compared with the lockdown quarter of the previous year – leading to higher business volumes in the region. By contrast, sales of standard joining technology for water management and industry applications were lower than in the prior year period.
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.
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