Zumtobel Group AG: The Zumtobel Group announces results for the 2023/24 financial year

Dornbirn (pta008/03.07.2024/07:30 UTC+2)

• Revenues decline by 6.8% to EUR 1,127.0 million (FX-adjusted by –5.8%)
• Adjusted Group EBIT totals EUR 57.3 million (previous year: EUR 84.3 million)
• Adjusted EBIT margin at 5.1% in the middle of the targeted range
• Net profit of EUR 24.7 million vs. EUR 60.0 million in the previous year
• Dividend proposal: EUR 0.25 per share
• Cautiously optimistic outlook for the 2024/25 financial year

Dornbirn, Austria – The Zumtobel Group was also confronted with challenging economic conditions during the 2023/24 financial year, which had a negative impact, above all, on the components business. The Lighting Segment made good progress in this challenging market environment with only a slight 1.5% reduction in revenues. In total, the company recorded a decline of 6.8% in revenues to EUR 1,127.0 million, after an adjustment for foreign exchange effects the decline equalled 5.8%. Adjusted EBIT totalled EUR 57.3 million, compared with EUR 84.3 million in the previous year. The adjusted EBIT margin equalled 5.1% and reached the middle of the expected range between 4 and 6%. Below the line, net profit totalled EUR 24.7 million.

"We successfully reached a number of key turning points for the future during the past financial year – starting with the successful market presentation of our new Keyture product brand for the Internet of Things to the implementation of numerous projects to accelerate our digital transformation and further progress towards meeting our sustainability goals", commented Alfred Felder, CEO of the Zumtobel Group.

Revenue development in the segments
Revenues in the Lighting Segment declined slightly by 1.5% to EUR 889.3 million in 2023/24. Lower sales volumes and negative foreign exchange effects were largely offset by efficient price management and volume growth in higher margin markets. The Components Segment, in contrast, recorded a reduction of 18.5% in revenues to EUR 299.4 million. The main underlying factors were the weaker demand that followed previous stock build-ups by customers and the resulting intensified price competition.

The 2023/24 financial year brought revenue declines in nearly all regions compared with the above-average good performance in 2022/23. The D/A/CH region was slightly below the previous year, whereby sound growth in Switzerland was contrasted by a reduction in Germany. Revenues in the Southern and Eastern Europe region were lower year-on-year, with particularly high declines in Italy and Spain. Moderate growth was recorded in Belgium and Norway The Asia & Pacific region reported the largest declines, especially in Australia, China and Macau. Revenues in the America & MEA region fell substantially as a result of disappointing sales in the USA.

Earnings
The adjusted cost of goods sold reflected a reduction in materials costs and inventory write-downs. Development costs rose by EUR 4.7 million to EUR 68.0 million in 2023/24. Adjusted selling and administrative expenses (incl. research) increased by EUR 10.1 million to EUR –346.0 million, whereby the cost drivers also included the increase in personnel costs which resulted from collective agreements.

Adjusted Group EBIT fell from EUR 84.3 million to EUR 57.3 million in 2023/24, and the adjusted EBIT margin equalled 5.1%. Profit before tax totalled EUR 34.9 million (previous year: EUR 66.0 million), and income taxes equalled EUR –10.2 million (previous year: EUR –6.1 million). Net profit fell to EUR 24.7 million. Earnings per share for the shareholders of Zumtobel Group AG (basic EPS based on 43.0 million shares) declined to EUR 0.57 (previous year: EUR 1.39).

Solid equity ratio and dividend
The balance sheet total of the Zumtobel Group was nearly unchanged year-on-year at EUR 987.2 million as of 30 April 2024 (2022/23: EUR 1,002.4 million). The equity ratio improved slightly from 42.1% to 43.1% as of 30 April 2024. In view of the EUR 24.7 million net profit generated in this difficult operating environment, the Management Board plans to make a recommendation to the Supervisory Board and, in turn, to the General Meeting on 2 August 2024 to distribute a dividend of 25 euro cents per share for the 2023/24 financial year. That represents roughly 43.7% of net profit (2022/23: approx. 30%) and, based on the closing price for the 2023/24 financial year, a dividend yield of 4.2%.

Outlook on 2024/25: Revenues slightly above previous year and adjusted EBIT margin of 3–6%
The management of the Zumtobel Group continues to see the current geopolitical and economic situation as stressed, a situation which makes it difficult to predict economic developments in the 2024/25 financial year. The further course of the war in Ukraine and the crisis in the Near East, the development of energy, raw materials and transport prices, and inflation and interest rate trends will have a significant influence on the global economy and, in turn, on the success of the Zumtobel Group. Against this backdrop and with reference to the above-mentioned uncertainties, the Management Board expects moderate revenue growth at least slightly above the prior year level for the 2024/25 financial year. The adjusted EBIT margin is expected to range from 3 to 6%.

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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)