Profit halved

Lighting manufacturer Zumtobel with declining revenues

Full warehouses at customers, declining sales: The Vorarlberg-based flagship company has to accept a 7.9 percent drop in revenues to 840 million euros. 

The Vorarlberg-based lighting group Zumtobel is struggling with declining business in the first nine months of the 2023/24 financial year. Revenues fell by 7.9 percent to EUR 840 million, while profits halved to EUR 21.4 million, as the company announced on Thursday. CEO Alfred Felder cited the continued weak demand in the components business and the weakening construction industry as the reasons for the decline.

Felder said that a slump in business had been expected, "but not on this scale and not so abruptly". Customers' full warehouses in the components business were a problem for Zumtobel. These would now be emptied. "However, we expect a better start to the next financial year," said Felder, referring to more new orders since November.

Adjusted for currency effects, the decline in revenues amounted to 6.6 percent in the third quarter. In the Components segment, sales fell by 20.4 percent to 222.6 million euros compared to the previous year, while sales revenue in the Lighting segment only fell by 2.1 percent to 663.4 million euros.

Operating result fell
As a result of the decline in sales, the operating result fell from 68 to 45.9 million euros. The equity ratio as at January 31, 2024 increased slightly to 43.4% (April 30, 2023: 42.1%) Equity increased from EUR 421.7 million on the balance sheet date of April 30, 2023 to EUR 426.5 million. Net debt increased to EUR 94.3 million as of January 31, 2024 (April 30, 2023: EUR 86.9 million).