STEICO SE Reports Stable Q1 2024 with Improved Earnings

The STEICO group announced its financial results for Q1 2024, showing steady business with a slight revenue decline but significant improvements in profitability. The company reported revenues of €95.9 million, slightly down by 0.7% from the previous year's €96.5 million. Despite this slight dip in revenue, STEICO experienced substantial growth in earnings during the quarter.

Total operating revenue fell to €93.2 million from €97.9 million year-over-year. However, earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a notable increase to €17.8 million, up 38.5% from €12.8 million in Q1 2023. Earnings before interest and taxes (EBIT) also grew impressively by 85.1%, reaching €10.8 million compared to €5.9 million in the corresponding period last year.

The company attributed the profitability gains to reduced procurement costs and the beneficial impact of a cost-cutting program initiated in 2023. These factors helped expand the EBITDA margin to 19.1% and the EBIT margin to 11.6%, each calculated against total operating revenue as per German GAAP. Despite a cautious outlook for the rest of 2024, STEICO's management anticipates further market stabilization and expects sales to remain consistent with the previous year at around €365 million, with an EBIT ratio between 9% and 11%.