Normet Group Achieves Record Order Intake Despite Challenges
Normet Group's Financial Report Highlights
Normet Group has unveiled key insights into its financial health through the recently published Half-year Financial Report for the period of January to June. Notably, despite challenges, the company reported a remarkable increase in order intake during the second quarter.
A Quarter of Achievements
During the April to June 2025 period, Normet Group recorded a record order intake of €174 million, reflecting a significant 47.1% increase compared to previous periods. This surge was fueled by various strategic project wins across multiple markets, showcasing the company’s robust demand for its underground mobile equipment.
Sales and Profit Trends
While the increase in orders is commendable, net sales took a hit, decreasing by 10% to €108 million due to lower deliveries and unfavorable currency effects. The comparable operating profit also decreased, amounting to €8 million and representing 7.4% of net sales, marking a decline from the previous year's figures.
First Half Year Insights
Looking at the first half of 2025, the order intake saw a 24.3% rise to €285 million, driven by strong performance in the Equipment business line, particularly in various regions. However, net sales dropped by 10.5%, again largely attributed to timing issues related to deliveries and adverse currency impacts.
Safety and Financial Stability
Notably, the Lost Time Injury Frequency Rate (LTIFR) saw improvement, falling to 1.8, approaching Normet's long-standing goal of less than 1.5. Despite experiencing a decrease in profitability, the company is focused on enhancing its operating margins and stabilizing its financial standing, which reflected a gearing ratio of 99.5% due to the recent redemption of a hybrid bond.
CEO's Insights on Future Prospects
CEO Ed Santamaria provided an optimistic outlook, highlighting strong market demand for their products. He mentioned that the significant orders secured during the quarter underscore Normet's potential for growth and stability. The focus remains on finalizing key service agreements and ramping up production to meet the increasing order backlog, which is a promising sign for the second half of the year.
Furthermore, management is actively prioritizing actions to improve profitability. Investments in technology development, particularly in electrification and automation, are being carefully integrated into the company’s future projects, focusing on innovation to drive long-term success.
Outlook for Normet Group
The demand for Normet's diverse portfolio ranging from equipment to expert services is expected to remain high in the coming years. The commitment to enhancing customer processes and service delivery is evident as the company shapes its strategies for sustained growth.
Frequently Asked Questions
What were the key highlights of Normet’s financial report?
Normet reported a record order intake of €174 million in Q2, yet faced a 10% decline in net sales due to lower deliveries and currency effects.
How did the company’s profitability change?
The comparable operating profit decreased to €8 million, representing 7.4% of net sales, impacted by reduced deliveries and currency fluctuations.
What initiatives is Normet focusing on to improve financial performance?
Normet is prioritizing actions to enhance profitability, including investments in technology development for electrification and automation.
How does the company’s safety performance look?
The Lost Time Injury Frequency Rate improved to 1.8, nearing their target of less than 1.5, reflecting their commitment to safety.
What is the overall outlook for Normet Group?
Normet expects continued high demand for its products and services, with a focus on expanding service agreements and managing delivery plans to meet customer needs.
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