NORMA Group, based in Maintal in Germany, generated Group sales of €1,091.9 million in tax year 2021. This is a 14.7% increase in revenue. This was well above the figure for the previous year, which was severely impacted by the Corona pandemic (2020: €45.3 million).
Dr. Michael Schneider, NORMA Group CEO commented: “There was a noticeable recovery in the global economy in 2021, especially in the first half of the year, something that was reflected in increased demand for our joining solutions. NORMA Group once again proved to be very robust in a difficult environment characterised by disruptions in global supply chains. In the course of the past fiscal year, we achieved good growth, in particular through our consistent focus on our three strategic business units of water management, general industry applications, and mobility and new energy. In 2022, we will continue to focus on these three areas.”
The 2021 fiscal year was shaped by varying global developments. Despite the ongoing Corona pandemic, economic conditions improved significantly. NORMA Group recorded increased customer demand in all business segments and regions. But turmoil in global supply chains created an entirely new set of challenges. The shortage of materials led to a sharp rise in prices, particularly in the second half of the year. This was reflected, among other things, in highly volatile ordering behaviour on the part of customers, particularly from the automotive sector.
Development in the business regions
In the EMEA region (Europe, Middle East and Africa), sales increased by 12.9% to €462.4 million in 2021. In the wake of the Corona-related declines in 2020, recovery effects in the Standardised Joining Technology (SJT) business and in the automotive business contributed to the sales increase.
In the America region, sales showed a significant 18.5% increase to €456.8 million. The positive development was the result of the general economic recovery on the one hand, and the continued very good performance of the US water business on the other. Water generated growth of 20.9% The US water business generated organic growth of 20.9% in fiscal year 2021.
In the Asia-Pacific region, sales totalled €172.8 million, an increase of 9.9% compared to the previous year. Increased demand from the Chinese automotive industry in the first half of the year as well as positive development in the SJT area contributed to the growth in sales.
Forecast for 2022: organic growth in the mid to high single-digit range
NORMA Group expects organic sales growth in the mid-single-digit range for the EMEA region in 2022. Both resurgent demand from the automotive industry and a continued strong SJT business are expected to provide growth momentum.
In the America region, NORMA Group expects to see mid to high single-digit organic sales growth. Anticipated growth drivers include the continued strong US water business and good development in the automotive business.
For the Asia-Pacific region, NORMA Group expects a continued positive development of demand and, as a result, mid to high single-digit organic sales growth.
Overall, the Management Board expects Group sales growth in the mid to high single-digit range for fiscal year 2022.
The Management Board expects net operating cash flow of about €100 million. The forecast has been prepared based on the assumption that there will be no significant negative effects in the course of 2022 in connection with the Corona pandemic or other influencing factors that could lead to a sharp downturn in the global economy and in the business development of NORMA Group. Potential influencing factors include, for example, military activities as well as economic sanctions in connection with the Russia-Ukraine crisis.
“We view Russia's attack on Ukraine and current developments in the region with grave concern,” said Dr. Michael Schneider, CEO of NORMA Group. “As a consequence, we have suspended all deliveries to Russia. NORMA Group has no production or sales sites in Ukraine or Russia and business with customers in Russia and Ukraine accounted for less than one percent of NORMA Group’s total sales in 2021. With that said, however, we are unable to fully assess how the war will impact the global economy at this time and therefore how it will impact NORMA Group in the medium and long term.”
New Corporate Responsibility Report provides information on progress being made in the area of sustainability
In its combined Annual and Corporate Responsibility Report 2021 published today, NORMA Group provides information on the company's material development and progress in the areas of environment, social affairs and governance. NORMA Group's key non-financial performance indicators include CO2 emissions, the number of invention disclosures and the number of defective parts per million parts produced. In addition, the Corporate Responsibility Report provides information on NORMA Group's taxonomy-compliant key figures for the first time in the context of EU Regulation 2020 / 852: Sales, capitalized capital expenditure and operating expenses.