Uzin Utz SE, an international manufacturer of floor installation products and systems, achieved consolidated sales of EUR 242.3 million in the first half of 2024, down 1.0% on the previous year (first half of 2023: EUR 244.7 million). Profit before interest and taxes (EBIT) was EUR 19.9 million (first half of 2023: EUR 17.5 million), representing an increase of 1.1 percentage points compared to the previous year, with an EBIT margin of 8.2%.
The economically challenging environment in the construction sector continued from January to June 2024. Most core and growth markets were burdened by high construction interest rates and associated high financing costs in the first half of the year. The ECB's rate cut in June only marginally weakened the impact of these factors. Despite a slight decline in sales, Uzin Utz managed to increase profits.
"Although sales fell slightly compared to the previous year and the situation in residential construction stagnated, we finished the first half of the year profitably," says Christian Richter, CFO of Uzin Utz. "Our financial performance shows that, despite the difficult economic conditions, we made the most of our purchasing potential and managed the situation well in the first six months."
Key figures for the first half of 2024:
- From January to June 2024, Uzin Utz generated revenue of EUR 242.3 million (2023: EUR 244.7 million), down 1.0% on the same period last year.
- The company posted EBIT of EUR 19.9 million (2023: EUR 17.5 million), resulting in an EBIT margin of 8.2% (2023: 7.1%).
- The 13.7% EBIT increase was mainly due to an improvement in material costs as a result of lower procurement costs. Freight costs were also reduced, which combined with positive currency effects contributed to the profit increase.
- On average, excluding trainees, there were 1,478 employees in the first half of 2024.
Strategic direction in product development
In the current economic climate and with many uncertainties, it is all the more important for Uzin Utz to strategically develop key future products and bring them to the operational business to make valuable contributions to the group. To meet the EU's climate targets, greenhouse gas emissions and energy consumption in the construction sector must be significantly reduced.
In addition to new construction, renovation of existing buildings in particular has great potential to make construction more sustainable and energy-efficient: conversion, repurposing, adding floors, circularity, reusable materials, renewable building materials and raw materials. Uzin Utz responds to these challenges with innovative product developments. For example, a sustainable floor system for moisture barriers was launched on the market, delivering significant CO2 savings.
"We are in the process of finding alternatives to conventional systems that emit less CO2. These could be, for example, gypsum-based levelling compounds instead of cement-based products," says Julian Utz, member of the Executive Board responsible for Research and Development. "Natural oils and renewable raw materials used in formulation are also not uncommon in our product portfolio."
Outlook
"As a leading manufacturer in the industry, we look to 2024 with cautious optimism, amid a global economy in which slow signs of recovery are becoming visible, but uncertainties remain," says Philipp Utz, chief sales officer. However, the Executive Board does not expect a fundamental improvement in the construction and housing sector in the coming months. A further decline is forecast for the renovation and new construction sector. More optimistic growth prospects for the sector are only expected from 2025 onwards.
More information:
Uzin Utz
www.int.uzin-utz.com