Paragon AG Achieves Earnings and Cash Flow Growth Despite Revenue Drop

paragon GmbH & Co. KGaA announced its financial results for the first nine months of 2024, reporting a decline in revenue but improvements in earnings and cash flow. Sales revenue totaled EUR 106.3 million, a 12.9% decrease from the previous year, attributed to the previous sale of the starter battery business and reduced customer orders.

Despite market adversity, the company achieved an EBITDA of EUR 12.9 million, down from EUR 16.3 million last year, with an EBITDA margin slightly declining to 12.1%. Strategic cost-cutting measures helped paragon reach breakeven in the third quarter, contributing to a positive cash flow of EUR 8.1 million compared to a negative EUR 5.6 million the prior year.

The management revised its annual revenue forecast to EUR 135-140 million, maintaining its EBITDA target at the upper range of EUR 18-20 million. Anticipation for 2025 includes stable to mildly increased revenue and a notable rise in net income, driven by continued cost-optimizing strategies.