NORMA Group reported moderate growth in the first quarter of 2023 with group sales up 3.5% over the same period in 2022 to €315 million (Q1 2022: €304.4 million). Organically, the company grew by 2.1% in the first three months of 2023.
NORMA attributes this growth primarily to higher selling prices to compensate for inflation related cost increases. Positive currency effects in connection with the US dollar contributed 1.3% to sales growth.
CEO Miguel Ángel López Borrego commented: “We managed to successfully pass on materials related price increases and generate moderate growth in what continued to be a challenging environment. With this quarter we are not, however, at the level we have targeted for 2023. We will continue to work to improve our internal processes so that we can operate more efficiently overall and take advantage of growth opportunities. We will increase our profitability in the course of the financial year.”
In the EMEA region, sales increased by 10.9% in the first quarter of 2023 to €138.2 million (Q1 2022: €124.6 million). Strong organic growth of 11.8% was diminished slightly by 0.9% due to negative currency effects. The primary growth driver was a significant upswing in customer demand in the European automotive sector. Business with standardised joining technology for industry applications also developed well.
In the Americas region, NORMA Group increased sales moderately in the first quarter of 2023 by 2.5% year-on-year to €137.6 million (Q1 2022: €134.3 million). In addition to positive currency effects of 4.6%, price increases were the main contributors to this growth. Volume related sales in the region fell 2.1% organically in the period from January to March 2023. While business with joining solutions for general industry applications, and for vehicles, both developed positively, business with water management products declined in the wake of extremely strong growth in the prior year quarter. This business is, for the most part, driven by end users who have been reluctant to buy due to the prolonged severe flooding in California earlier in the year.
In the Asia-Pacific region, sales in the first quarter were €39.1 million, which represents a decrease of 14% compared to the same period in the previous year (Q1 2022: €45.5 million). Organically, sales were down 11.8%; negative currency effects reduced sales growth by an additional 2.3%. Compared with the prior year quarter, demand from the Chinese automotive industry in particular was significantly lower – an after effect of the Covid-19 pandemic and the associated restrictions in China. In the business with joining solutions for industry applications, the sales level of the previous year was also not achieved.
Will joined Fastener + Fixing Magazine in 2007 and over the last 15 years has experienced every facet of the fastener sector - interviewing key figures within the industry and visiting leading companies and exhibitions around the globe.
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