Grammer Reports €3.33 Loss per Share in FY 2024, Down 17% in Revenue

Grammer's FY 2024 results show a net loss of €49.7m, down from a profit of €1.80m in FY 2023. Revenue fell 17% to €1.92b. The company forecasts a 6% average annual revenue growth over the next three years, outpacing the 3.4% growth expected for the German Auto Components industry. Shares are up 7.3% from a week ago.

Grammer (ETR:GMM) has released its full-year 2024 results, revealing a net loss of €49.7m, a stark contrast to the €1.80m profit reported in FY 2023. The company's revenue fell 17% to €1.92b, marking a significant decline. Despite these challenges, Grammer's shares have risen 7.3% from a week ago, indicating investor optimism.

The company's financial performance was impacted by a cyclically weak demand for commercial vehicles and major upheavals in the automotive industry. Revenue in the Commercial Vehicles area decreased by 22.9% to €436.6m, while the Automotive area saw a 5.7% drop to €607.7m. These declines were partially offset by strong order intake from previous years.

Grammer implemented several restructuring measures to boost competitiveness and financial stability. The sale of TMD Group, the launch of a Shared Service Center in Serbia, and the reduction of excess capacities in EMEA were among the key initiatives. The company also acquired the Jifeng Automotive Interior Group to consolidate its production footprint and product portfolio.

Looking ahead, Grammer forecasts a 6% average annual revenue growth over the next three years, which is higher than the 3.4% expected for the German Auto Components industry. This growth is expected to be driven by a moderate improvement in operating EBIT and a focus on transforming Central Services and administrative functions.

Despite the challenges faced in 2024, Grammer's proactive approach to restructuring and its forward-looking growth forecast suggest a company poised for recovery. However, investors should be aware of the 2 warning signs identified by Simply Wall St before making any investment decisions.