Revenue in Division EMEIA increased by 13% versus the same period last year, Packaging and Coatings & Sealants both saw increased revenue, whilst Building & Construction performed in line with the same period last year. Division Americas saw revenue in USD across all segments increase by 13%. Division Asia experienced a revenue decrease of 18% in USD. This was due to a decline in sales in China and lower sales in Indonesia, with projects delayed amidst economic and political uncertainty.
The direct contribution margin for the Group was € 27.9 million, an increase of € 3.7 million compared to the same period last year. Due to continuous effective margin management across all regions, the margin as a percentage of revenue increased to 49%, versus 46% in the same period last year.
Operating expenses were € 23.1 million, up by € 2.1 million (10%) compared to the same period in the previous year. This increase is in line with our plans. Personnel costs increased due to higher wages in an inflationary environment, costs of temporary personnel went up due to increased production, and both maintenance and consultancy costs were higher compared to the same period last year.
The operating result was € 4.8 million compared to € 3.2 million in the same period last year. The net result was € 3.5 million (€ 4.02 per share) versus € 2.2 million (€ 2.61 per share) in the same period previous year.
Net cash flow amounted to € 2.7 million (negative) versus a net cash flow in the same period last year of € 1.2 million (negative). Net cash from operating activities amounted to € 1.7 million (positive), a decrease compared to last year (€ 2.7 million). This was due to an increase in working capital of € 3.5 million, mainly due to higher inventories.
Cash outflow from investing activities amounted to € 1.0 million, a decrease of € 1.7 million compared to the same period last year. This was due to a reduction level in investments following the completion of the Apeldoorn production line at the start of this year. Cash outflow from financing activities amounted to € 2.9 million, a slight decrease of € 0.3 million. This was due to the lower dividend that has been paid.
Our market position focuses on structurally healthy business segments. We have a strong relationship with our customers, based on personal service and co-designing customized solutions.
We presented an update of our renewed strategy in the Annual General Meeting of Shareholders held on 10 July this year. We are implementing various strategic initiatives which will continue to have a positive impact on the sustainable growth of our core businesses. However, continued global economic uncertainty may continue to impact our markets in the short term. In line with previous years, Holland Colours refrains from making forward-looking financial statements.
Apeldoorn, 31 October 2024
Coen Vinke (CEO)
Eelco van Hamersveld (CTO)