Paragon AG Reports Rise in Operating Result Despite Decline in Sales

Paragon AG reported a notable increase in its operating result for 2024, despite a decline in sales. Sales revenue fell by 16% to EUR 135.7 million, impacted by restraint in customer orders and the divestiture of the starter battery business. However, operating EBITDA rose to EUR 19 million from EUR 17.7 million, translating to an improved EBITDA margin of 14%. These results reflect the success of cost-cutting measures that are expected to yield further benefits in 2025.

The company also highlighted a strong rise in operating cash flow to EUR 16 million and free cash flow to EUR 5.2 million. Net debt was reduced significantly, and the net gearing ratio stood at 3.1 by year-end. Looking ahead, Paragon plans to expand its new Consumer Products division to diversify beyond the automotive market, aiming for EUR 140 to 145 million in sales and EBITDA of EUR 20 to 22 million in 2025.