Zumtobel plans annual sales growth of 4 to 5 percent

Zumtobel CEO Alfred Felder

Vorarlberg-based lighting manufacturer Zumtobel is assuming average annual sales growth of 4 to 5 percent for the four financial years from 2021/22 to 2024/25.

For the financial year 2024/25, an EBIT margin in the order of 6 to 8 percent is planned, the company said on Wednesday. “We have made the Zumtobel Group very robust over the past few years and <...> created the basis for sustainable growth,” said CEO Alfred Felder.

The Zumtobel Group explained its corporate strategy to investors and analysts on Tuesday at its capital market day. The targeted EBIT margin of 6 to 8 percent would mean another significant increase compared to the EBIT range of 4 to 5 percent expected in the current financial year 2021/22. The company is still planning to distribute 30 to 50 percent of net earnings (minus special payments) as dividend payments, it said.

“Catch-up” effects of the corona crisis

For the current financial year, the Management Board stuck to the planned growth in sales of 4 to 7 percent despite the challenges in the raw materials market. This growth is characterized by “catch-up effects” after the corona pandemic. In the next few years, the Zumtobel Group aims to exceed the expected market growth of 3 to 4 percent in the core market of Europe; in the 2024/25 financial year, sales are expected to be in the region of EUR 1.2 billion (2020/21: EUR 1.04 billion). to book. Felder also described company acquisitions as conceivable in order to expand the positions in existing markets or to strengthen the portfolio through new technologies in the digital sector.

Climate neutrality by 2025

Felder highlighted sustainability and digitization as important building blocks for the future. “As part of the EU’s Green Deal, there are also new incentives for new buildings and the environmentally friendly renovation of buildings, and the subject of light will also play an important role in this,” he said. In addition, there are substantial investment programs in the energy, transport and industry sectors, from which the lighting industry will also benefit. The Zumtobel Group itself aims to be climate-neutral by 2025.

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