Financial performance indicators

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

The global economy is expected to grow at roughly the same rate in 2025 as in the previous year. While the economic outlook for the USA remains resilient, with growth forecast to remain at the same level, the outlook for the economy in our other core and growth countries is more pessimistic. Nevertheless, with the exception of France, all of Uzin Utz's remaining core and growth countries are expected to grow above the forecast for the 2024 financial year. Inflation in the industrialized countries is likely to continue to fall, but will not reach the central banks' target values everywhere. Other key influencing factors are the high geopolitical risks and uncertainties regarding economic policy developments in some regions. These include the political course set in the USA, particularly with regard to trade policy, as well as the ongoing Russian war of aggression in Ukraine and the unresolved armed conflicts in the Middle East, which continue to weigh on the development of the global economy. We continue to face major challenges as a result of these factors.

However, a slight recovery is expected for the development of construction activity in the 19 EUROCONSTRUCT countries. An increase in total construction output is forecast in four of our six core and growth countries. Although the construction industry in Germany and France is forecast to decline, the decline will be lower than in 2024. As a result, we expect to be able to achieve slight sales growth in 2025 compared to the previous year. In addition, growth opportunities are emerging in several construction sectors where Uzin Utz's strengths lie. In Switzerland, for example, increasing construction investments in the renovation segment are expected, and the growth in maintenance and modernization in the USA and France also continues to be positive. Renovation measures are also growing in the UK and the Netherlands. Residential construction activities are developing positively in the Netherlands, Switzerland and the USA. An increase in private residential construction is also forecast in the UK.

As part of the planning for the 2025 financial year, starting points for optimizing the financial performance indicators were developed in collaboration with the managing directors of all Group companies. Slight sales growth is to be generated through the introduction of new products, the acquisition of new customers and the implementation of digital systems.

The development of profitability will be dampened by continuing challenging market conditions and increasing competitive pressure. In absolute terms, an increase is expected in all cost items. According to the plan, other operating expenses will increase slightly, which is mainly due to sales and advertising expenses as part of the strategic optimization of brands and sales channels. An increase in personnel is forecast for the Group, particularly at Uzin Utz SE. In addition, personnel expenses will increase due to a tight labor market and the resulting cost-intensive recruitment of new employees. Investment activities such as measures to adapt to new market conditions or investments to secure competitiveness and growth opportunities are included in the plan. However, the level of depreciation and amortization remains the same. In addition, material and production cost optimization will be used to achieve a lower material usage ratio. The implementation of the new strategy mentioned above will also incur costs for the associated strategic projects. These projects include improving the organization and optimizing the IT and ERP systems. Overall, the aforementioned developments in cost factors according to plan and the strong result in 2024 will result in a slight reduction in EBIT. This will lead to a slight reduction in the EBIT margin despite slight sales growth.

The significant increase in earnings in 2024 had a positive effect on cash flow from operating activities. In 2025, the forecast slight decline in EBIT is also expected to result in a slight decrease in operating cash flow.

The decline in earnings also affects the return on equity and the equity ratio. While we forecast a moderate decline in the return on equity in 2025, we expect the equity ratio to fall slightly.

In addition to the control variables mentioned above, we are continuing to invest in our global locations and are therefore planning investments of EUR 29,865 thousand for the coming year. Approximately 3/4 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 production volumes is expected for 2025. However, this increase is likely to lead to a constant level of capacity utilization due to capacity increases resulting from process optimization. Depending on market developments, we will react flexibly to changes and implement adapted working time models.

The Group's novelty rate is expected to experience a moderate decline in the 2025 reporting year. This is primarily due to the discontinuation of top-selling products from the liquid adhesives and stable fillers areas, which were introduced more than 5 years ago and will therefore be removed from the calculation of the counter. Experience has shown that the new products from the dry mortar and liquid products segments cannot compensate for this sharp decline in the start-up phase of sales.

The health rate in the Group has been at a consistently high level of just under 95% for years. No significant change is expected for 2025 either.