Good morning, ladies and gentlemen. Rather gentlemen, to be honest. Thank you for joining us for today's investor and analyst conference call on Polytec full-year results 2024. With me is our CFO, Markus Mühlböck, who will take over after my introduction. 2024 was a further year of navigating change and numerous headwinds. Ultimately, we turned a negative trend in result, significantly improved net debt, and remain with an optimistic expectation to proceed this trend in the running year. The market remained challenging. Vehicle production in Europe remains at a persistently low level at around 15 million-16 million vehicles per year, well below the peak of just under 21 million in [2017] and even 7% below 2023. This resulted in overcapacity and corresponding market pressure on the entire industry.
Despite the difficult conditions, we succeeded in increasing total revenue and bridging the operating result back into positive territory after a year of losses, even improved over EUR 10 million. This is an important step in the right direction, still at a negative net result. Therefore, it's important, or more important than ever, to adapt our structures to the permanently lower production figures in the European automotive industry. For this reason, we are continuously optimizing our organization, cost structure, and product and service portfolio to turn the bottom line into solid profits. The Painted Exterior division is particularly affected by upheaval. We operate in the niche and small-series segment, which means we are talking about a few thousand to 20,000 vehicles per year. However, large-series suppliers are now increasingly pushing into the upper end of this niche in order to utilize their excess capacity.
This is putting pressure on prices and volumes. In addition, capital expenditure and overhead costs are above average in this business area due to its complexity. This is why a portfolio evaluation is particularly important for Polytec in this area in order to improve further economic performance. The uncertain market outlook has also led us to significantly reduce CAPEX in the U.K. by sourcing locally instead of producing in-house. Not only, but also because of the dependency on battery electric vehicles in the future. As regards electromobility, we are seeing project postponements and cancellations at OEMs due to general uncertainties. On the one hand, this makes capacity and investment planning more difficult. On the other hand, we are benefiting from higher volumes and longer product life cycles at products for vehicles with combustion engines.
Thanks to our cautious investment policy, the delay in electromobility does not pose a major problem for Polytec. At the same time, we are more than well prepared for a renewed acceleration toward electric vehicles. With our Polytec Solution Force, we have laid the foundation in recent years to offer the right solutions for electric mobility as well, for example, in thermal management, underbody solutions, and high-voltage battery housings, where we can compete with the best in the industry. Another promising segment is our Smart Plastics products. Above all, reusable and recyclable transport packaging and components for energy storage and transfer. These segments outside the automotive industry are becoming increasingly important for Polytec and are expected to account for 30% of total sales in the long term. Last year, this volume grew by 60%. New markets, new products take time.
The potentials for upcoming years seem promising, below others, backed by the demand of reusable packaging. This year, our annual report is accompanied for the first time by a detailed voluntary sustainability report. We have made further progress with our Go Neutral certified initiative. In relation to the material consumption, we have reduced both our CO2 emissions and our gas consumption. This is thanks to various measures to increase efficiency and the further expansion of our photovoltaic systems. Our recycling plant in Ebensee operated at full capacity for the first time in 2024. We were able to process 5,000 tons of plastic there. In addition, a process developed in-house will enable us to significantly increase the recycling content of the SMC process in the future. Alongside with the very positive technical performance, weak recyclability was a downside on durable plastic composites so far, which we can now attack.
Even if the market environment will continue to present us with challenges in the future, we are convinced, in view of Polytec's adaptability, we will continue to navigate well through change and be able to successfully unlock potential with our innovative strengths. Now I hand over to Markus Mühlböck, CFO of Polytec Holding AG.
Good afternoon, ladies and gentlemen. I would like to start with a brief summary and the major financial figures. 2024 was another year of change and challenges, and we actively set the direction. We increased our EBIT by almost EUR 11 million and are back in positive territory. At the same time, we were able to significantly reduce our net debt and consequently further strengthen our balance sheet structure. A clear sign of how adaptable Polytec acts. The main facts and figures. Polytec increased its consolidated sales revenues by 6.6% to around EUR 678 million. We were able to increase our EBIT by EUR 10.6 million and hence reached a positive EBIT margin of 0.6%. Net debt decreased by almost 50% to EUR 42.4 million. The net debt/EBITDA ratio decreased significantly from almost 3 to 1.2. Polytec's equity ratio was at almost 42% and has been at a healthy level for many years.
The outlook for 2025. Polytec is planning consolidated sales revenues of EUR 650 million-EUR 700 million and is aiming for an EBIT margin of around 2%-3%. This then would result in a positive net result. Now let's have a more detailed look on the performance of the financial figures during the year 2024. I would like to start with an overview on Polytec Group's sales split. In total, Polytec Group generated sales revenues of EUR 678 million, which is an increase of 6.6% or EUR 41.8 million compared to the previous year. We report sales performance in three market areas. Let me begin with the biggest area, the Passenger Cars and Light Commercial Vehicle market area, which contributed 73% to our total turnover. Sales revenues of EUR 495 million were generated. This corresponds to an increase of 5.1% compared to the previous year. Market area number two, Commercial Vehicles.
We have already mentioned in our previous reports that sales of heavy Commercial Vehicles are expected to decline in volumes in fiscal year 2024. Unfortunately, the expectations were met. Sales revenues in the Commercial Vehicles market area showed a year-on-year reduction of 15.7%. Sales amounted to EUR 92.3 million, which equals 13.6% of the group's total sales revenues. In contrast, very good news from the market area number three, Smart Plastics and Industrial Applications. Since the first quarter of 2024, sales revenues in the non-automotive market area have shown a pleasing development. Revenues increased by almost 63% to EUR 91 million, coming from EUR 56 million in 2023. The share of this market area in the Polytec Group's consolidated sales rose by 4.6 percentage points year-on-year to 13.4%. Now let's have a look at the financial figures.
As announced in the outlook for the 2024 financial year, in the previous year, a significant improvement in the earnings situation was expected from the first quarter of 2024. The EBITDA of the Polytec Group improved by 34%, or EUR 9.1 million, from EUR 26.6 million to EUR 35.7 million in the full year 2024. The EBITDA margin increased by 1.1 percentage points year-on-year, from 4.2% to 5.3%. Let's have a look on the EBIT development. After operating earnings before interest and taxes were significantly negative in both the third and fourth quarter of 2023, EBIT took a positive turn in the first quarter 2024. The positive earnings trend continued in the second quarter of 2024. In contrast, sales revenues in the third quarter had fallen short of expectations due to short-term reduction in call-off volumes.
The management of the Polytec Group had then adjusted the outlook for the full year 2024 and assumed an EBIT margin of around 1% at the time of publication of the Q3 in mid-November 2024. Finally, the Polytec Group's EBIT for the full financial year 2024 amounted to EUR 3.9 million, up EUR 10.6 million from the previous year's figures. The EBIT margin rose by 1.7 percentage points year-on-year, from minus 1.1 to plus 0.6. The financial result of the Polytec Group amounted to minus EUR 12.4 million, coming from minus EUR 9.1 million in 2023. The increase was a consequent of higher interest rate level and a higher share of variable interest-bearing loans. The financial result includes approximately EUR 2 million relating to pension obligations. Earnings after tax improved year-on-year from minus EUR 14.1 million to minus EUR 6.9 million, but were still negative.
Earnings per share amounted to minus 0.29, coming from minus 0.64 in previous year. Therefore, the Board of Directors and Supervisory Board of Polytec Holding AG will propose to the Annual General Meeting, which will be held on the 10th of June, to not pay dividends for the 2024 financial year. Finally, some more positive signals from the assets and financial status. We could cut net working capital by 64% or EUR 41 million from EUR 64 million to EUR 23 million year-on-year. Also very positive to mention. Due to lower net working capital and lower financial liabilities, net debt decreased by almost 50% to EUR 42 million. Net debt/EBITDA was significantly reduced from around 3 to 1.2. The gearing ratio decreased from 0.36 in 2023 to 0.2 at balance sheet date end of 2024. On that day, equity ratio amounted to 41.7% and was 0.3 percentage points higher than on the previous year's balance sheet date.
Equity ratio has been on a healthy level for many years. In the 2024 financial year, cash flow from operating activities doubled year-on-year from EUR 33 million to over EUR 68 million. At the end of December, Polytec Group disposed of over EUR 66 million of cash, coming from approximately EUR 50 million in the previous year. Finally, I want to tell you the estimates for the 2025 financial year. We are confident to come back to a net positive profitability in 2025. The outlook. From today's perspective, the management of Polytec Holding AG expects planned consolidated sales revenues in the range of EUR 650-EUR 700 million for the 2025 financial year and is targeting an EBIT margin of around 2-3%. The measures introduced in previous periods to increase operational efficiency are showing improvements and are expected to take full effect in the year.
In order to optimize the strategic orientation and future economic performance of the Polytec Group, work is being done to adapt the current production and service portfolio. As a result, the earnings situation is expected to further improve in the medium term. Due to the significant reduction in net debt and improvement in the financial result in conjunction with an assumed further decline in interest rates, a positive result after tax is targeted for the 2025 financial year. However, achieving this outlook is subject to uncertainty. The automotive industry continues to be characterized by a volatile market environment, uncertain development of demand, and a faltering transformation towards electromobility. The Polytec Group has a strong market position within and outside the automotive sector and is confident for the future. This was our statement on the 2024 financial.