Zumtobel Group AG: Zumtobel Group announces results for the first nine months and introduces new IoT product brand

Dornbirn (pta008/07.03.2024/07:30 UTC+1)

• Revenues decline by 7.9% to EUR 840.0 million (FX-adjusted: –6.6%)
• Adjusted Group EBIT amounts to EUR 45.9 million (previous year: EUR 68 million)
• Net profit drops from EUR 43.4 million to EUR 21.4 million
• Management Board appointments of Thomas Erath (CFO) and Bernard Motzko (COO) extended
• First public presentation of the new IoT product brand

Dornbirn, Austria – The Zumtobel Group recorded a 7.9% decline in revenues to EUR 840 million for the first nine months of the current 2023/24 financial year. After an adjustment for foreign exchange effects, the decline equalled 6.6%. The main underlying reason was the ongoing weak demand in the Components Segment, despite a slight recovery during the third quarter. Revenues fell by 20.4% to EUR 222.6 million in the Components Segment, but only marginally by 2.1% to EUR 663.4 million in the Lighting Segment. As a result, adjusted EBIT dropped by 32.5% to EUR 45.9 million. That represents an adjusted EBIT margin of 5.5% (previous year: 7.5%) which still remains within the forecasted range. Net profit amounted to EUR 21.4 million compared with EUR 43.4 million in the previous year.

Improvement in the gross profit margin
The cost of materials and inventory write-downs declined during the first nine months of 2023/24. Development costs recorded by the Zumtobel Group rose by EUR 2.9 million to EUR 50.2 million (previous year: EUR 47.2 million). The adjusted gross profit margin improved to 35.5% (previous year: 34.5%) despite the decline in revenues due to the year-on-year increase in revenues in high-margin regions and reduction in inventory write-downs. Adjusted selling and administrative expenses (incl. research) rose slightly by EUR 5.2 million to EUR –252.0 million (previous year: EUR –246.8 million), whereby the main drivers were the increase in development costs and the personnel cost adjustments resulting from collective agreements.

Adjusted Group EBIT fell from EUR 68.0 million to EUR 45.9 million in the first nine months of 2023/24. Net profit for the period declined to EUR 21.4 million (previous year: EUR 43.4 million). Earnings per share for the shareholders of Zumtobel Group AG (basic EPS based on 43.0 million shares) dropped to EUR 0.50 (previous year: EUR 1.01).

The balance sheet structure of the Zumtobel Group remains sound. The equity ratio increased slightly to 43.4% as of 31 January 2024 (30 April 2023: 42.1%). Equity rose from EUR 421.7 million to EUR 427.3 million as of 30 April 2023, and net debt increased to EUR 94.3 million as of 31 January 2024 (30 April 2023: EUR 86.9 million).

Continuity on the Management Board
In a meeting on 26 January 2024, the Supervisory Board of the Zumtobel Group extended the appointment of two Management Board members to ensure continuity on this corporate body: The appointment of Thomas Erath, Chief Financial Officer (CFO) since 1 August 2021, was extended by a further three years to 30 September 2027. The contract with Chief Operating Officer (COO) Bernard Motzko, in this function since May 2018, was extended by a further two years to 30 September 2026.

"I am delighted that the contract renewals for Mr. Erath and Mr. Motzko will ensure continuity on the management board and further bolster the Zumtobel Group's development, despite the challenging economic and geopolitical landscape", says Karin Zumtobel-Chammah, Chairwoman of the Zumtobel Group's Supervisory Board.

First public presentation of the new IoT product brand Keyture
The Zumtobel Group acquired the rights to the SiteWorx IoT software developed by Digital Lumens (with exclusive rights for Europe) in autumn 2023 and has now successfully integrated this software in the product offering for its Smart Building Solutions. This new product brand was presented to the public for the first time at the Light + Building in Frankfurt, the world's most important trade fair for light.

Keyture is the Zumtobel Group's new cloud-based connectivity and IoT ecosystem. Its intelligent key features support the optimal use of Thorn and Zumtobel luminaires in professional sensor-supported lighting systems to enable their operation with maximum energy efficiency. In this way, the systems make an important contribution to the decarbonisation of buildings because they facilitate the cost-efficient and intelligent operation of lighting in properties. The modular structured, multifunctional software suite is based on intelligent sensors and includes solutions to maximise energy reduction (control), provide the necessary information for maintenance and the monitoring of sustainability goals (report), real-time space optimization (view), identify and follow objects (locate), as well as environmental and operational excellence monitoring (sense).

"We see great future potential in this new IoT system. It supports the cost-efficient and intelligent operation of property lighting and can make an important contribution to the decarbonisation of buildings", explained Alfred Felder, CEO of the Zumtobel Group.

After the first presentation at the Light + Building trade fair, Keyture will be available to customers starting in autumn 2024. It will form the core portfolio for Smart Building Solutions.

The Zumtobel Group's latest press release underscores these plans. The Ecosystem Partnership Agreement with Siemens and Enlighted, a leading property technology company owned by Siemens, was signed on 29 February 2024. This strategic partnership is designed to bundle the know-how for smart buildings and jointly offer innovative solutions. The focus of the strategic partnership lies, above all, on the following application areas: commercial buildings, higher education and smart hospitals.

"With the support of our new Keyture product brand and the new Siemens and Enlighted partnership, we will be present in a market that we have not developed to date – in particular, with a focus on wireless IoT solutions. Current forecasts point to double-digit growth for this market in the coming years", added Alfred Felder, CEO of the Zumtobel Group.

Outlook confirmed
The economic environment remains difficult and continues to have a negative influence on the commercial construction sector. For the 2023/24 financial year, the Management Board of the Zumtobel Group still expects a revenue decline in the mid-single digit percentage range and an adjusted EBIT margin (excluding special effects) of 4% to 6%. The confirmation of this outlook is based on the assumption that there will be no further deterioration in the economic environment.

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Emitter:	Zumtobel Group AG Höchster Straße 8 6850 Dornbirn Austria
Contact Person:	Eric Schmiedchen
Phone:	+43 5572 509 1125
E-Mail:	eric.schmiedchen@zumtobelgroup.com
Website:	z.lighting
ISIN(s):	AT0000837307 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade)