EQS-News: Semperit AG Holding: Industrial Sector puts in strong performance in the first nine months – impairment loss in the Medical Sector

EQS-News: Semperit AG Holding / Key word(s): 9 Month figures/Quarter
Results
Semperit AG Holding: Industrial Sector puts in strong performance in the
first nine months – impairment loss in the Medical Sector

16.11.2022 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Press release

Semperit: Industrial Sector puts in strong performance in the first nine
months – impairment loss in the Medical Sector

 

• Decrease in revenue at Group level of -10.4% to EUR 829.6 million in
Q1-3 2022
• Increase in revenue in the Industrial Sector of 36.4% to EUR 558.4
million in contrast to a significant decrease in the Medical Sector of
47.5% to EUR 271.2 million
• EBITDA decreased by -73.5% to EUR 85.9 million; EBITDA margin down by
-24.7 percentage points to 10.3% (Q1-3 2021: 35.0%)
• Impairment losses in the Medical Sector (EUR 51.8 million) and in the
Semperseal segment (EUR 2.1 million)
• EBIT declined sharply to EUR -9.0 million (Q1-3 2021: EUR 290.0
million); EBIT margin fell to -1.1% from 31.3% in the previous year
• EBIT adjusted for the impairment losses in the Medical Sector and the
Semperseal segment amounted to EUR 44.9 million; the adjusted EBIT
margin was 5.4%
• Decline in free cash flow to EUR -19.6 million (Q1-3 2021: EUR 160.1
million)

 

Vienna/Austria, 16 November 2022 – Compared with the exceptionally
positive prior-year period as a result of the pandemic, the publicly
listed Semperit Group recorded an expected decline in revenue and earnings
in the first nine months of 2022. “However, in this reporting period we
also managed to defy the challenging market environment and the increasing
economic slowdown with a strong performance in the Industrial Sector. This
reinforces once again that consistently pursuing our Group’s
transformation into an industrial rubber specialist is the right path”,
said CEO Karl Haider. “Following the end of the pandemic-induced special
cycle and the prevailing market dynamics in the market for examination and
protective gloves, the separation from the Medical Sector has moved again
to the foreground in the summer. We are taking gradual steps towards a
prompt separation and have held initial talks with potential buyers.”

 

Rise in revenue in the Industrial Sector significantly influenced by
higher sales prices

In a still-challenging market environment characterised by high inflation
and economic slowdown, the Group managed to promptly pass on raw material
and energy-related price increases by raising average sales prices in all
Industrial Sector segments. Revenue increased by 36.4% in the Industrial
Sector to EUR 558.4 million. This counteracted, at least in part, the
sharp decrease in revenue of -47.5% to EUR 271.2 million in the Medical
Sector. At Group level, revenue decreased by just -10.4% to EUR 829.6
million. The decrease in revenue in the Medical Sector is due mainly to
declining price levels.

 

Operating earnings depressed by decrease in revenue and rising costs 

Operating earnings were depressed by both the significant decrease in
revenue in the Medical Sector and increase in cost of materials (including
energy and purchased services) of 17.5%, in personnel expenses of 9.1% and
in other operating expenses (in particular outbound freight and
non-production-related energy costs) of 19.9%. Having risen sharply over
the past two years as a result of the pandemic-induced special cycle in
the Medical Sector, EBITDA declined significantly from EUR 324.3 million
in the first nine months of 2021 to EUR 85.9 million, a decrease of
-73.5%. The EBITDA margin was 10.3% (Q1-3 2021: 35.0%). EBIT declined to
EUR -9.0 million in the first nine months of 2022 from EUR 290.0 million
in the previous year. The Semperit Group’s EBIT margin decreased from
31.3% in the previous year to currently -1.1%. If earnings were adjusted
for the impairment losses posted at the end of September, there would be
an adjusted EBIT of EUR 44.9 million and an adjusted EBIT margin of 5.4%
for the first nine months of 2022.

Cash expenditures on intangible assets and property, plant and equipment
amounted to EUR 41.8 million in the first nine months of 2022, putting
them above the prior-year level of EUR 31.2 million. There will continue
to be an increasing focus on investments aimed at growth going forward.

In the first nine months of 2022, free cash flow totalled EUR -19.6
million burdened by tax payments in line with rules in connection with the
coronavirus-related special cycle in 2021, compared to EUR 160.1 million
in the same period of the previous year.

 

Outlook 

After a successful first half year and a weaker Q3 2022 as expected, the
Semperit Group is anticipating a further decline for the remainder of the
financial year and therefore confirms the outlook published in March 2022.

This is based primarily on the assumption that the last three months of
the year are by far the weakest quarter of the year, both for seasonal
reasons and due to company holiday over the Christmas period. Following
the end of the pandemic-induced special cycle, the Medical Sector is also
expected to weigh on the results on Group level in Q4 2022 after the
negative result in Q3. Added to this is the incipient economic slowdown,
which will have a negative impact on the Industrial Sector as well.

There is a certain degree of uncertainty regarding sales volumes, since
both in the Medical Sector and to some extent in the Industrial Sector,
customers’ inventory optimisation programmes may lead to customer ordering
behaviour that deviates from the usual. This is also due in part to the
cost increases, as price pass-through opportunities will depend on the
price sensitivity of the respective customers and the dynamics in the
segment-specific product markets.

Unclear and therefore also uncertain are the still-unforeseeable further
developments in geopolitical trouble spots, such as the current situation
in Taiwan. Added to this are the negative effects from inflation and
foreign currency trends.

The Executive Board of Semperit AG Holding is consistently pursuing the
Group’s transformation into an industrial rubber specialist in spite of
the delay due to the coronavirus pandemic. Following the end of the
pandemic-induced special cycle and the prevailing market dynamics in the
market for examination and protective gloves, the separation from the
Medical Sector has once again moved to the foreground in summer 2022. The
Executive Board is gradually taking the next steps towards separation and
has already held initial talks with potential buyers. The separation from
the Sempermed segment shall take place in a timely manner.

 

Overview of the most important key financial figures in Q1-3 2022

Key figures of the Semperit Group,   Q1‑3 2022 Change Q1‑3 2021
in EUR million
Revenue   829.6  –10.4% 926.1
EBITDA   85.9  –73.5% 324.3
EBITDA margin   10.3% –24.7 PP 35.0%
EBIT adjusted   44.9  –84.5% 290.0
EBIT margin – adjusted   5.4% –25.9 PP 31.3%
EBIT   –9.0 n.a. 290.0
EBIT margin   –1.1% –32.4 PP 31.3%
Earnings after tax   –34.6 n.a. 224.1
Earnings per share (EPS), in EUR   –1.68 n.a. 10.85
Gross cash flow   43.8  –85.2% 295.7
Free cash flow   –19.6 n.a. 160.1
         
Balance sheet key figures, in EUR   30.9.2022 Change 31.12.2021
million
Total assets   841.1  –12.3% 958.6
Equity   492.7  –8.8% 540.1
Net debt (+) / Net cash (-)   –92.0 –36.2% –144.2
Net debt to EBITDA   n.a. n.a. n.a.
Additions to tangible and intangible   32.4  –42.5% 56.4
assets
         
ESG   Q1‑3 2022 Change Q1-3 2021
Employees (at balance sheet date)   6,700  –4.7% 7,027
         
Sector and segment key figures, in   Q1‑3 2022 Change Q1‑3 2021
EUR million
Industrial Sector Revenue 558.4 +36.4% 409.4
  EBITDA 100.4 +55.6% 64.5
  EBIT 78.1 +69.7% 46.0
Semperflex Revenue 252.2 +46.6% 172.1
  EBITDA 68.3 +82.7% 37.4
  EBIT 59.4 n.a. 29.0
Sempertrans Revenue 109.8 +38.7% 79.2
  EBITDA 10.3 +58.2% 6.5
  EBIT 7.3 +85.4% 3.9
Semperform Revenue 83.0 +24.4% 66.7
  EBITDA 12.3 +24.4% 9.9
  EBIT 9.1+ +28.3% 7.1
Semperseal Revenue 113.3 +24.0% 91.4
  EBITDA 9.5  –11.6% 10.7
  EBIT 2.2  –62.2% 5.9
Medical Sector (Sempermed) Revenue 271.2  –47.5% 516.7
  EBITDA –4.0 n.a. 277.4
  EBIT –75.6 n.a. 262.6

Additional details can be found in the Semperit Group’s report on the
first three quarters 2022.
 

For queries, please contact

Monika Riedel                
Director Group Brand Management,     
Corporate Spokesperson           
+43 676 8715 8620              
[1]monika.riedel@semperitgroup.com      

Judit Helenyi
Director Investor Relations
+43 676 8715 8310   
[2]judit.helenyi@semperitgroup.com

 

[3] www.semperitgroup.com

[4] www.linkedin.com/company/semperit-ag

 

About Semperit
 

The publicly listed company Semperit AG Holding is an internationally
oriented group that develops and produces highly specialised polymer
products for the industrial and medical sectors, selling them in over 100
countries around the world: hydraulic and industrial hoses, conveyor
belts, escalator handrails, construction profiles, cable car rings,
products for railway superstructures, and examination and surgical gloves.
Founded in 1824, this long-standing Austrian company has its headquarters
in Vienna, Austria. The Semperit Group employs around 7,000 people
worldwide, including some 3,800 in Asia and approximately 900 in Austria
(Vienna and production site Wimpassing, Lower Austria). The Group has 16
manufacturing facilities worldwide and numerous sales offices in Europe,
Asia, Australia, and America. In the 2021 financial year, the Group
generated revenue of EUR 1,182.2 million and an EBITDA of EUR 361.8
million.

 

 

 

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16.11.2022 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: Semperit AG Holding
Am Belvedere 10
1100 Wien
Austria
Phone: +43 1 79 777-310
Fax: +43 1 79 777-602
E-mail: judit.helenyi@semperitgroup.com
Internet: www.semperitgroup.com
ISIN: AT0000785555
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1488595

 
End of News EQS News Service

1488595  16.11.2022 CET/CEST

References

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