Novem Group Q1 revenue rises 2.8% on Tooling unit strength
Novem Group Q1 revenue rises 2.8% on Tooling unit strength
Overview
Car interiors supplier's fiscal Q1 revenue rose 2.8% yr/yr to €132.6 mln
Fiscal Q1 adjusted EBIT grew 14.1% yr/yr, margin improved to 6.6%
Free cash flow more than doubled, driven by higher operating cash flow
Outlook
Company says persistent geopolitical challenges continue to shape automotive markets differently across regions
Result Drivers
TOOLING BUSINESS - Revenue growth mainly driven by strong Tooling segment performance due to favorable project phasing
COST DISCIPLINE - Improved operating result supported by lower other operating expenses and continued focus on cost efficiency, including short-time work in Germany
WORKING CAPITAL - Free cash flow improvement mainly driven by higher cash flow from operating activities, primarily due to increased trade payables, lower increase in trade receivables as well as increased provisions
Company press release: ID:nEQb74LGfa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue |
| EUR 132.60 mln |
|
Q1 Adjusted EBIT |
| EUR 8.8 mln |
|
Q1 Free Cash Flow |
| EUR 4.8 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
Wall Street's median 12-month price target for Novem Group SA is €2.90, about 10.7% above its July 29 closing price of €2.62
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago
Reuters Recommended Reads
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)