Financial performance indicators

At Group level, we expect the following development of key figures:

Even in 2024, global economic development will not be able to return to the level of the years before the COVID-19 pandemic. While the US economy is proving more resilient than expected, the outlook for the economy in our other core and growth countries is much more pessimistic. Interest rates, which have been raised as part of the fight against inflation, will continue to slow economic growth, while government support will decrease as a result of increased public debt. Geopolitical uncertainties have increased compared to the previous year. In addition to the ongoing war in Ukraine, the armed conflicts in the Middle East and increased piracy in the Red Sea are weighing on the development of the global economy.

Due to these factors, we are once again facing major challenges in 2024. A contraction in construction output is expected in Europe. Accordingly, total construction output is expected to decline in four of our six core and growth countries. Nevertheless, we assume that we will be able to achieve slight sales growth compared to 2023. An increase in construction output is expected for Switzerland, for example, and the same applies to the USA. In addition, growth opportunities are emerging in certain areas of the construction industry, where our strength lies. In Germany, for example, the renovation of apartments is expected to increase, and a growing renovation segment is also anticipated in Switzerland. The same applies to France. In addition, the expected increase in public construction investment in the USA and the UK offers opportunities to win tenders with our solutions. An increase in private residential construction is also forecast in the UK. In order to exploit existing market potential, starting points for optimization were defined in consultation with the managing directors of the subsidiaries, with the aim of both increasing sales and improving profitability. Examples of starting points in the area of sales include the acquisition of new customers, the digitalization of sales and the sale of new products.

Factors that already had an impact on earnings development in 2023 will also be relevant in 2024. In absolute terms, an increase is expected in all cost items. In the area of other operating expenses, the operating costs for building, machine and IT maintenance are expected to show the strongest absolute increase. Depreciation and amortization will also rise due to increased investment activity in recent years. An increase in personnel expenses is expected due to a planned increase in personnel and, among other things, an inflation adjustment. Starting points for optimization in the area of profitability relate to logistics costs, for example. Measures such as changing service providers and the commissioning of the plant in Waco, including the associated reduction in distance to customers, will take full effect in 2024 and thus contribute to the planned cost reduction in the logistics area. Furthermore, material and production cost optimization will work towards achieving a lower material usage ratio. Overall, the aforementioned development of cost factors is expected to result in a slight increase in EBIT. With slight sales growth, this will lead to a constant EBIT margin.

After the situation on the supply market eased in the past financial year, the previously unusually high build-up of inventories was reduced enormously during 2023. This resulted in an unusually high, positive effect on cash flow from operating activities. No reduction in inventories is expected in 2024, meaning that a moderate decline in operating cash flow is anticipated.

We expect the return on equity and equity ratio to remain at the same level in 2024.

In addition to the aforementioned performance indicators, we are continuing to invest in our global locations and are therefore planning investments of EUR 20,913 thousand for the coming year. Approximately 2/3 of the planned total investments are primarily attributable to production sites such as the Uzin Utz SE site, Uzin Utz Nederland B.V. and Pallmann GmbH .

Non-financial performance indicators

At Group level, the following development of non-financial key figures is expected:

A slight increase in the volume produced within the Group is expected for 2024. As a result, the level of capacity utilization in 2022 (83.4%) should be almost reached despite increased capacities. The new plant of Uzin Utz North America Inc. in Waco and the associated production capacities could already be utilized proportionally in 2023 and should be fully utilized in 2024. In line with the definition as a growth market, the USA will make the highest absolute contribution to increasing production volumes. In addition, Uzin Utz SE will make a significant contribution to increasing production volumes. Depending on market developments, we will react with adjusted working time models.

The Group's new product ratio will fall moderately in the 2024 reporting year. This is mainly due to high-revenue products from the dry mortar and liquid sectors that were launched more than five years ago next year and will therefore no longer be included in the counter in the coming reporting year. Experience has shown that new products cannot compensate for this decline in the start-up phase of sales.

The health rate in the Group has been at a consistently high level for years, close to 95%. No significant change is expected here in 2024 either.