Business
Paragon's robustness confirmed by significant increase in operating result despite decline in sales
Paragon's robustness confirmed by significant increase in operating result despite decline in
About this update from Paragon Gmbh & Co. Kgaa
[{"type":"text","content":"\n\n\nEQS-News: paragon GmbH & Co. KGaA\n\n\n / Key word(s): Annual Report/Annual Results\n\n\n\n\n\nparagon's robustness confirmed by significant increase in operating result despite decline in sales \n\n\n\n\n\n\n30.04.2025 / 18:14 CET/CEST\n\n\n\nThe issuer is solely responsible for the content of this announcement.paragon's robustness confirmed by significant increase in operating result despite decline in sales At EUR 135.7m, sales revenue in 2024 16.0% lower than in previous year but still within the adjusted forecast - caused by restrained customer call-offs and sale of the starter battery businessNevertheless, operating EBITDA of EUR 19.0m (previous year: EUR 17.7m) within original expectations - operating EBITDA margin now at 14.0% (previous year: 10.9%)Success of the extensive improvement measures - cost savings will have a year-round effect in 2025New Consumer Products division to make significant sales contributions by 2025Forecast for 2025: EUR 140 to 145m in sales with EBITDA of EUR 20 to 22m Delbrück, April 30, 2025 - paragon GmbH & Co. KGaA [ISIN DE0005558696] today published its annual report for the year 2024. The audited consolidated financial statements confirm paragon's resilience to external influences and market fluctuations.\n\nIn 2023, sales declined as forecasted to EUR 135.7m (previous year: EUR 161.7m). In addition to the weaker automotive market, the loss of sales due to the sale of the starter battery business also played a role here. It is pleasing to note that – not including a write-down of an intangible asset from previous years that will have no future impact – an increase of 7.8% was achieved with an operating EBITDA of EUR 19.0m (previous year: EUR 17.7m). The cost savings achieved have shown effect and will have economies of scale for 2025. The subsidiary paragon movasys GmbH (Business Unit Kinematics) made a major contribution here, achieving a turnaround with an EBITDA margin of 10.3% (previous year: 3.1%) despite the significant sales weakness of a key customer and now delivering results comparable to the rest of the Group.\n\nOf particular note is the very significant increase in operating cash flow from EUR -6.2m in the previous year to EUR 16.0m in 2024 and in free cash flow to EUR 5.2m (previous year: EUR -13.8m).\n\nThe paragon-Group's debt was already reduced to an appropria...