KAP AG Reports Improved Profitability Amid Market Challenges

KAP AG, a mid-sized industrial holding company, enhanced its profitability in the 2024 financial year, despite facing a challenging market environment. The company reported a 4.8% decrease in revenue to €252.5 million, primarily due to reduced demand in the automotive sector. However, restructuring efforts led to a 99.1% increase in normalised EBITDA, reaching €21.9 million.

Key measures included the divestment of the precision components segment, focusing on core areas: engineered products, flexible films, and surface technologies. This strategic move helped counterbalance weak demand, particularly in the engineered products and surface technologies sectors.

The flexible films segment showed resilience, with a 4.5% increase in revenue to €81.5 million. Overall, KAP's emphasis on restructuring and core segment focus indicates potential for sustainable growth amidst ongoing market challenges.