JOST Werke SE Reports Q1 2024 Results with Stable Profitability and Enhanced Cash Flow

JOST Werke SE announced its financial outcomes for Q1 2024, revealing a persistence in high profitability levels and a significant improvement in free cash flow despite a dip in sales affected by market conditions. The company noted a sales decrease to EUR 299 million from EUR 342 million in Q1 2023, attributing the decline to cooled demand in North America and Europe. However, profitability remained robust with an adjusted EBIT margin steady at 11.6%.

One of the standout achievements for the quarter was the substantial increase in free cash flow, which rose by 164% to EUR 35 million, compared to EUR 13 million in the same period last year. Additionally, JOST managed to reduce its net debt, improving the leverage ratio to 0.93x compared to 0.998x at the end of 2023. This financial milestone underscores the company's efficient cost management and strategic planning capabilities.

In regional performances, Europe and North America encountered sales declines, but JOST's agile operations minimized the impact on profitability. Contrarily, the Asia-Pacific-Africa region saw growth, driven by robust demand in India, Australia, and South Africa, alongside recovery in China's truck market, leading to a sales increase of 3.1% in this region.

Closing the quarter, JOST reaffirmed its full-year 2024 guidance, expecting a slight reduction in sales and adjusted EBIT within its strategic margin range, attributable to the challenging global market conditions but mitigated by the company's resilient operational framework.