NORMA Group (ETR:NOEJ) Will Be Looking To Turn Around Its Returns

Ladies and gentlemen, buckle up! We're diving into the world of engineered joining technology with NORMA Group SE (ETR:NOEJ). This company has been through a rough patch, but don't count them out just yet. They've got a plan, and it's a doozy!

First things first, let's talk about the elephant in the room. NORMA Group's revenue and earnings have been on a downward spiral. In 2023, revenue dropped by 1.61% to 1.23 billion, and earnings plummeted by 28.76% to 27.83 million. Ouch! But here's the thing: the market is tough, and NORMA Group is feeling the heat. Their Q3 2024 sales dropped by 7.9% to 273.6 million. But guess what? They're not going down without a fight!



NORMA Group has unveiled an ambitious 2025 plan, and it's all about focus and reinvention. They're selling off their water management business, which has been a drag on their performance. This move will free up resources and allow them to concentrate on their core strengths: quick connectors, hose clamps, retaining clamps, and pipe couplings. It's a bold move, and it could pay off big time.

But that's not all! NORMA Group has been busy securing new contracts. They've landed a major order for tank ventilation line systems and won a significant contract from a home appliance manufacturer in the US. These deals show that they're not sitting idly by; they're out there hustling and making things happen.

Now, let's talk about the potential benefits of this strategic shift. First, financial flexibility. The sale of the water management business could bring in a boatload of cash, which NORMA Group can reinvest in more profitable areas. Second, focus on core competencies. By shedding non-core assets, they can streamline operations and become more efficient. Third, risk mitigation. The water management sector has been volatile, and divesting it could help NORMA Group avoid future headaches.

But it's not all sunshine and rainbows. There are risks involved. The divestment could lead to a short-term loss of revenue, and the market might perceive it as a sign of weakness. Plus, the process of selling off a major business unit can be complex and disruptive. It's a high-stakes game, and NORMA Group is playing for keeps.

So, what's the bottom line? NORMA Group is at a crossroads, and they're making some big bets to turn things around. The sale of their water management business is a strategic move that could pay off handsomely, but it's not without risks. The company's past performance and current market challenges indicate that achieving a turnaround will require sustained effort and strategic execution.

You need to keep an eye on NORMA Group. They're a company on the move, and their 2025 plan could be a game-changer. Stay tuned, because this story is far from over!