Construction activity in the 19 EUROCONSTRUCT countries will decline by 2.4% in 2024 according to the results of the 98th EUROCONSTRUCT Conference. Compared to the previous forecast of the 97th EUROCONSTRUCT Conference, this represents a slight upward correction of 0.3 percentage points. Nevertheless, 2024 is expected to be the most difficult year for the construction industry since 2020, following the first decline in growth in 2023. The biggest challenge for the European construction industry was the significant decline in new residential construction, which fell by 9.1% in 2024. High property prices, persistently high - albeit falling - interest rates and high construction costs are the main factors hampering the sector's development.

The sales markets in our core and growth countries remained very challenging in 2024. Construction output declined in the core countries of Germany and the Netherlands as well as in the growth countries of the UK and France. The market in Switzerland and the growth country USA met their expectations and recorded growth despite the difficult economic conditions in some areas. In the first and second quarters, Group sales in 2024 remained stable compared to the previous year (Q1: -1.0%, Q2: -1.1%), while sales fell slightly in the third quarter (Q3: -2.1%). Due to the difficult market environment, it was not possible to match the previous year's sales. Overall, sales revenue decreased by 0.7% compared to 2023 and amounted to EUR 476,034 thousand in 2024 (479,337).

In 2024, the Uzin Utz share was able to fully offset its losses from the previous year and recorded a price gain of around 8.6%. At the beginning of the year, demand for the share increased, which led to significant price gains. This development was supported by the prospect of falling interest rates in the eurozone and the USA. After a temporary low, the share price reached its high for the year by the middle of the year, but then fell again due to fears of recession, concerns about escalation in the Middle East and burst currency speculation. Thanks to continued hopes of an interest rate cut and a robust economy in the USA, the share price developed positively again over the course of the year despite the weak construction sector in Germany. Over the past five years, the share price has fallen by 17.6% as at the reporting date.

Despite the decline in turnover, Uzin Utz succeeded in achieving an increase of around 24.1% compared to the previous year with an EBIT of EUR 42,815 thousand (34,505) thanks to consistent cost optimizations and an easing on the procurement market. In addition to the positive development of the cost of materials ratio of 41.3% (44.8), the improved freight costs in particular also contributed to the cost reduction. More detailed information on this can be found in the "Earnings situation" section.

We are proud of the fact that our employees are actively working to achieve our ambitious targets despite the ongoing and new challenges. This enables us to continue to guarantee the high quality of our products and services. We see ourselves as an innovator and one of the leading providers within our industry. For this reason, it is crucial that we expand our growth potential in order to continue to operate successfully and sustainably worldwide. It is important to us to focus on sustainable and healthy growth in order to constantly realize new market shares. In addition to our committed employees, investments in research and development activities at our global locations are key components of this strategy.

As a traditional family business, we pursue a holistic approach to sustainability that is anchored in our long-standing corporate culture. In addition to economic and ecological aspects, we also attach great importance to social factors. These values enable us to secure jobs and create new positions in line with demand, even in times of difficult economic conditions. The focus is always on trusting relationships with customers and partners in order to generate relevant added value for them. More information on our commitment to sustainability can be found in our non-financial statement in accordance with Sections 315b and 315c of the German Commercial Code (HGB).

The Executive Board of Uzin Utz SE assesses the developments in the reporting year 2024 as positive against the background of the challenging economic conditions. Despite the declining growth of the construction industry in the core countries Germany and the Netherlands as well as the growth countries Great Britain and France, the Group was able to generate sales revenues that matched the strong level of the previous year. In addition, an EBIT margin of 9.0% (7.2) was achieved despite the decline in sales. The forecast given in the 2023 Annual Report for the development of this financial performance indicator (constant EBIT margin) was exceeded with a slight increase. Last but not least, the Uzin Utz Group succeeded in achieving the profit target set in the PASSION 2025 strategy, an EBIT margin of more than 8.0% in the reporting year.