Uzin Utz increases result of the previous year

• Consolidated sales revenue of EUR 242.3 million just below the previous year (EUR 244.7 million)
• Consolidated earnings rise to EUR 19.9 with an EBIT margin of 8.2 %
• Inflation slows residential construction in Germany and abroad

Uzin Utz SE, an international manufacturer of products and systems for flooring installation, achieved consolidated sales of EUR 242.3 million in the first half of the year, a decrease of 1.0 % compared to the previous year (first half-year 2023: EUR 244.7 million). At EUR 19.9 million (first half-year 2023: EUR 17.5 million), earnings before interest and taxes (EBIT) for the first half of the year were up 1.1 percentage points on the previous year's figure with an EBIT margin of 8.2 %.

The economically challenging environment in the construction industry continued in the months from January to June. In the first half of the year, the majority of core and growth markets continued to be burdened by high construction interest rates and the resulting high financing costs. The ECB's key interest rate cut in June also only marginally weakened the effect of the framework parameters. In this context, Uzin Utz recorded a slight decline in sales, but an increase in earnings. "Despite the slight decline in sales compared to the previous year and the continuing stagnating situation in residential construction, we have successfully completed the first half of the year in terms of earnings," Christian Richter, CFO of Uzin Utz, says. "Our financial performance shows that we were able to utilise potential in procurement despite the difficult economic conditions and have thus mastered the situation well in the first six months," Richter continues.

Group key figures for the first half of 2024 in detail

From January to June 2024 inclusive, Uzin Utz generated revenue of EUR 242.3 million (2023: EUR 244.7 million); this corresponds to a decrease of 1.0 % compared to the same period of the previous year. The company recorded EBIT of € 19.9 million (2023: € 17.5 million). This results in an EBIT margin of 8.2 % (2023: 7.1 %). The 13.7 % increase in EBIT is mainly due to an improvement in the cost of materials ratio as a result of lower procurement costs. Freight costs were also reduced. This, in combination with positive exchange rate effects, contributed to an increase in earnings. On average, 1,478 people were employed in the first half of 2024, excluding trainees. 

Setting the strategic course in product development

Against the background of the economic environment and many uncertainties, it is all the more important for Uzin Utz to push ahead with the strategically important products of the future and transfer them to the operating business in order to be able to deliver corresponding value contributions for the group of companies. In order to achieve the EU's climate targets, greenhouse gas emissions and energy consumption in the building sector must be significantly reduced. In addition to new construction, the renovation of existing buildings in particular has great potential to make construction more resource-conserving and energy-efficient: Conversion, repurposing, adding storeys, circularity, reusable materials, renewable building materials and raw materials. The full-range supplier of flooring systems meets these challenges with innovative product developments. For example, a sustainable floor system for moisture barriers was launched on the market, which has significant CO2 savings. "This is where we are drawing and are working on finding alternatives to conventional systems in various areas that cause less CO2 emissions. These could be gypsum-based levelling compounds instead of cement-based products," Julian Utz, Member of the Executive Board, says who is responsible for Research and Development. "Natural oils and renewable raw materials that are used in the formulation are also not uncommon in the product portfolio," Utz continues.

Outlook

"As a leading manufacturer in the industry, we are looking to 2024 with cautious optimism, embedded in a global economy in which slow signs of recovery are becoming visible, but in which uncertainties remain," Philipp Utz, Chief Sales Officer says. However, the Executive Board does not expect a fundamental improvement in the construction and housing industry in the coming months. A further decline is forecast in the renovation and new construction sector. The outlook for the sector will only show more optimistic growth forecasts from 2025 onwards.