No dividend as cartridge volumes fell in second half of 2024.
Turbon AG, the German-headquartered imaging and electronics group, reported weaker full-year earnings and will not pay a dividend for 2024, after remanufactured toner cartridge volumes collapsed in the second half of the year.
The company’s Assembly operations, which include remanufacturing toner cartridges primarily for the US market, performed well until July 2024. However, revenues declined sharply from August onwards. Although sales teams secured new customers in the latter part of the year, volumes failed to return to previous levels, with the impact visible in segment earnings.
Revenue in Turbon’s Electrics/Electronics (E/E) segment fell to €28.2 million ($30.5 million) in 2024, from €30.7 million ($33.2 million) the year before. Segment EBIT dropped from €2.1 million ($2.3 million) to €0.4 million ($0.4 million), while pre-tax profit declined more than 80 per cent to €0.3 million ($0.3 million). The E/E division, which also includes electronic manufacturing services (EMS) and cable assembly, was affected by weak European demand and early-stage inefficiencies at the company’s new Romanian site.
Group revenue for the year was €56.2 million ($60.7 million), in line with the revised forecast issued in August 2024. However, earnings before tax fell to €1.2 million ($1.3 million) from €1.7 million ($1.8 million) in 2023, and earnings per share remained negative at –€0.04. The board will propose no dividend at the next AGM, citing the need to preserve liquidity for internal investment and market expansion.
Toner cartridge remanufacturing is now treated as one of several assembly activities within Turbon’s Electrics/Electronics segment. Following the strategic exit from manufacturing in Asia, production is now concentrated in Europe. The new facility in Oltenita, Romania, became fully operational in the second quarter and supports EMS, cable, and assembly activities. Cross-trained personnel were deployed flexibly across departments to manage fluctuations in workload.
In October 2024, Turbon strengthened its EMS footprint through the acquisition of RoPro Produktions GmbH, a manufacturer focused on prototypes and small-series production in Aschaffenburg. The move marks Turbon’s entry into the ongoing consolidation of the German EMS market, with additional acquisition targets currently under review.
Turbon’s Consumables division maintained a strong position in the Middle East in 2024, with revenues reaching €17.8 million ($19.2 million). The company expanded sales of distributed, non-manufactured products alongside its traditional printed paper rolls and secure documents. Growth was supported by an established customer base across the Gulf States, including banks, retailers, and hospitality chains. Despite some early-year market disruption linked to political tensions, demand stabilised in the second half, underpinning the division’s profitability
Turbon Services, the group’s managed print services and consulting unit, reported revenue of €9.8 million ($10.6 million), up from €9.2 million ($9.9 million) in 2023. New client wins in Germany and the United States contributed to modest earnings growth, reinforcing the division’s stable role within the group.
Turbon remains largely bank-independent, with only minor asset-based financing at subsidiary level. Looking ahead, the group is targeting revenue of between €58.0 million ($62.6 million) and €61.0 million ($65.9 million) for 2025, with pre-tax profits projected to exceed €2.0 million ($2.2 million). It acknowledged general uncertainty arising from recent changes to US trade and customs policy but did not explicitly link these risks to its export-oriented toner cartridge business, which is primarily dependent on the US market.
