Preliminary 2021/22 results prove strong resilience in current market conditions

DGAP-News: Novem Group SA / Key word(s): Preliminary results/Annual results
Novem Group SA: Preliminary 2021/22 results prove strong resilience in current market conditions
02.06.2022 / 09:00
The issuer is solely responsible for the content of this announcement.

Novem Group SA: Preliminary 2021/22 results prove strong resilience in current market conditions

  • 2021/22 revenue of €614.5 million, +1.9% compared to 2020/21

  • FY 2021/22 Adjust. EBIT of €80.9 million, -6.4% below fiscal year 2020/21

  • Solid profit margin of 13.2% for the full year despite continued headwinds

Luxembourg, June 2, 2022 – Novem Group SA today published its preliminary results for its 2021/22 financial year, including fourth quarter figures. Over the past 12 months, the Society has performed well with a WO. EBIT margin of 13.2%, despite still difficult trading conditions. Supporting the strong resilience of Novem’s business model, the Company achieved revenue of €614.5 million in fiscal year 2021/22, representing organic growth of +1.9% vs. ‘last year.

Resilience despite a difficult market environment

Although the war in Ukraine and the Covid-19-related lockdown in China led to lower OEM production volumes, fourth quarter 2021/22 revenue nearly matched the prior quarter at 159.3 million. euros (-13.1% over one year). Affected by less solicitation from customers, Series sales were down -7.2% compared to the previous year at €149.8 million. Tooling revenue of €9.4 million was half of last year’s level due to different project phasing. However, based on LMC market data, Novem again bet that global LVP would contract -9.6% year-over-year.

On a regional basis, revenue decreased in Europe (-€4.8 million quarter-on-quarter) and Asia (-€3.3 million quarter-on-quarter), while Novem increased its revenue in America of +7.5 million euros compared to the third quarter of 2021/22. While the decline in revenue in Europe was the result of tooling and reduced customer calls due to war-related production disruptions in Ukraine, the decline in Asia was directly related to several plant closures of customers due to the zero-Covid policy in China.

While the Q4 2021/22 Adj. EBIT of EUR 22.3 million was recorded at a similar level to the previous quarter, resulting in a further improvement in profit margin of 14.0% quarter-on-quarter, times Adj. EBIT (-35.6% year-on-year) and profit margin (year-on-year: 18.9%) remained down compared to last year. This was caused by a drop in income and an increase in expenses. Operational performance has been impacted by the stop-and-go approach of OEMs, leading to inefficiencies. In addition, the increase in logistics expenses, particularly in America, and in the prices of certain raw materials, such as aluminum and aggregates, as well as energy costs weighed on the results for Q4 2021/22.

Strong cash development

In the fourth quarter of fiscal year 2021/22, Novem generated a substantial free cash flow of €45.2 million, outperforming last year with an increase of +€19.5 million or +76 respectively. .2%. Cash flow from operating activities increased by +9.2 million euros compared to the previous year, mainly due to lower trade receivables. Conversely, Novem recorded a further increase in inventories largely due to tooling and. Cash outflows from investing activities amounted to €0.8 million, including a non-recurring translation adjustment of +€9.2 million.

Significantly higher investments reflect acquired Faurecia businesses

Q4 2021/22 capex increased significantly by +49.8% year-on-year to €8.4m. Due to lower revenues, the underlying investment ratio fell from 3.0% last year to 5.2% (+2.2pp yoy). Q4 2021/22 investments included around €3.0 million for the Faurecia business takeover.

Capital structure further improved

Gross financial debt as of March 31, 2022 amounts to 282.6 million euros (previous year: 433.6 million euros) and thus shows a significant decrease of -151.0 million euros. Compared to the previous year, this sharp drop is mainly explained by the repayment of the bond loan of 400 million euros, which was partly offset by the drawing of a new loan of 250 million euros in July 2021. Cash and cash equivalents decreased by -€58.3 million compared to fiscal year 2020/21. Despite the difficult trading conditions, Novem managed to deleverage its balance sheet and demonstrate a robust financing structure with a strong net leverage ratio of 1.5x. The main sources of financing were €117.0 million in cash (March 31, 2021: €175.3 million) and €47.8 million in non-recourse factoring (March 31, 2021: €40.1 million). euros).

An accompanying presentation on the preliminary results for the 2021/22 financial year is available on the Investor Relations website under Reports and Presentations. This press release contains unaudited financial information, which may be subject to change. The final figures and the annual report for the financial year 2021/22 will be published on June 30, 2022 on our Investor Relations website.

About Novem

Novem, headquartered in Germany, is one of the world’s leading suppliers of decorative interior trim parts for the premium automotive industry. Across the range of key materials such as real wood, aluminum, carbon and premium synthetics, the company delivers unparalleled quality, technology and innovation to a growing customer base including all major premium automakers. range of the world. Founded in Vorbach, Germany in 1947, the company has continually expanded its global presence to Germany, Italy, Czech Republic, Slovenia, China, United States, Honduras and Mexico. Novem employs approximately 5,700 people across 12 sites and achieved sales of over €600 million in fiscal year 2020/21.

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02.06.2022 Broadcast of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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