Zumtobel Group AG: Zumtobel Group presents first quarter results

Dornbirn (pta007/04.09.2025/07:30 UTC+2)

• Revenues decline by 7.8% to EUR 266.4 million in the first quarter
• Adjusted Group EBIT totals EUR 6.6 million
• Adjusted Group EBIT margin within the forecasted range at 2.5%
• Net profit falls to EUR –4.0 million as a result of negative special effects
• Outlook for the 2025/26 financial year confirmed
• Significant cost savings expected over the medium term from global efficiency programme
  

The Zumtobel Group started the new financial year on a slow note: In the first three months of the 2025/26 financial year, revenues were 7.8% lower year-on-year at EUR 266.4 million (Q1 2024/25: EUR 289.1 million). After an adjustment for foreign exchange effects, the decline equalled 7.7%. Revenues fell by 11.8% to EUR 70.9 million in the Components Segment and by 7.0% to EUR 210.7 million in the Lighting Segment. In light of these developments, operating results were also reduced substantially: Adjusted Group EBIT totalled EUR 6.6 million compared with EUR 20.2 million in the first quarter of the previous financial year. The adjusted EBIT margin was within the forecasted range at 2.5% (Q1 2024/25: 7.0%). As a result of negative special effects caused by the plant shutdown in the USA, the company is reporting a net profit of EUR –4.0 million for the first three months of 2025/26.

"These numbers clearly reflect the substantial challenges faced by our company. That makes it all the more important to further strengthen the resilience of the Zumtobel Group and to constantly focus on future viability. For this purpose, we are currently launching a global efficiency program, that will enable us to become even more customer-oriented with streamlined structures and processes, and to substantially reduce costs", explained Alfred Felder, CEO of the Zumtobel Group.

Weak revenue development in many regions
Revenues were generally stable year-on-year in the D/A/CH region but the Zumtobel Group recorded declines in Northern and Western Europe, especially in UK. Slight weakness also was visible in Southern and Eastern Europe during the first three months of the current financial year. The Asia & Pacific and America & MEA regions also failed to match the previous year's revenues due to difficult operating conditions.

In the Lighting Segment, revenues were7.0% lower at EUR 210.7 million in the first quarter of 2025/26 (Q1 2024/25: EUR 226.6 million). Higher revenues in parts of the Southern and Eastern Europe region were unable to offset the negative developments in UK and in the Asia & Pacific region.

The Components Segment recorded a decline of 11.8% to EUR 70.9 million in Q1 2025/26 (Q1 2024/25: EUR 80.3 million), whereby the difficult economic environment was responsible for lower revenues in all regions.

Negative special effects pressure earnings
The adjusted cost of goods sold reflects a reduction in material and personnel costs. Adjusted development costs were EUR 1.1 million lower at EUR 17.1 million (Q1 2024/25: EUR 18.2 million). An increase in the cost of materials as a percentage of revenues was responsible for a decline in the adjusted gross profit margin to 36.7% (Q1 2024/25: 38.5%). Adjusted selling and administrative expenses (incl. research) matched the previous year at EUR –91.3 million. The reduction in costs was, however, unable to offset the substantial decline in revenues: Adjusted EBIT fell to EUR 6.6 million in the first quarter of the current financial year (Q1 2024/25: EUR 20.2 million) and represents an adjusted EBIT margin of 2.5% (Q1 2024/25: 7.0%).

The shutdown of the unprofitable production location in Highland (USA) led to negative special effects of EUR –7.4 million in the first quarter of 2025/26. EBIT for the Zumtobel Group therefore fell to EUR –0.8 million (Q1 2024/25: EUR 18.7 million) and profit before tax to EUR –3.9 million (Q1 2024/25: EUR 14.2 million). Net profit dropped to EUR –4.0 million (Q1 2024/25: EUR 12.8 million). Earnings per share for the shareholders of Zumtobel Group AG (basic EPS based on 42.3 million shares) equalled EUR –0.09 (Q1 2024/25: EUR 0.30).

Global efficiency programme started
In view of the ongoing economic challenges, the Management Board recently launched a global efficiency programme for the Zumtobel Group. It is part of the updated corporate strategy FOCUSED[+]. The first phase included an extensive analysis of selling and administrative expenses (SG&A) for the entire group. Based on the results, a global package of measures is currently in preparation and will be implemented during the next four years up to 2028/29.

The goal of the programme is to shorten decision paths, clarify responsibilities, and sustainably strengthen innovation in order to act even more customer-oriented. This should also permanently improve efficiency and cost structures. The significant cost savings in selling and administrative costs are planned to increase annually and reach a volume of EUR 30 to 40 million in the 2028/29 financial year.

The most important levers for this implementation are a leaner organisation, the expansion of the Shared Service Centres in Serbia and Portugal, and further process automation. The various measures are currently being prepared in detail, and first effects are expected in the current 2025/26 financial year. Of the total expected cost savings, 80% should be realised by 2027/28. The related restructuring costs will reach the single-digit million range annually up to and including the 2028/29 financial year.

Phase two of the efficiency programme will involve the evaluation of operations, procurement, and research and development. This programme will create the basis to steer the Zumtobel Group and its employees safely through these challenging times and ensure optimal positioning for future developments. The same applies to the hoped-for economic recovery, a period in which the Zumtobel Group wants to further expand its competitive ability.

Outlook confirmed
The management of the Zumtobel Group continues to see the current geopolitical and economic situation as stressed and difficult to forecast. That makes it difficult to predict economic developments in the 2025/26 financial year. Against this backdrop and with reference to the above-mentioned uncertainties, the Management Board of Zumtobel Group expects revenues in a single-digit percentage range below the previous year and an adjusted EBIT margin of 1% to 4%.

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Emitter:	Zumtobel Group AG Höchster Straße 8 6850 Dornbirn Austria
Contact Person:	Eric Schmiedchen
Phone:	+43 5572 509 1125
E-Mail:	eric.schmiedchen@zumtobelgroup.com
Website:	z.lighting
ISIN(s):	AT0000837307 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade)