EQS-News: Semperit holds its ground in a difficult market environment and has completed its repositioning as an elastomers specialist
EQS-News: Semperit AG Holding / Key word(s): 9 Month figures/Quarterly /
Interim Statement
Semperit holds its ground in a difficult market environment and has
completed its repositioning as an elastomers specialist
08.11.2023 / 07:34 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Semperit holds its ground in a difficult market environment and has
completed its repositioning as an elastomers specialist
• As expected, revenue in continued operations of EUR 547.6 million
(–7.7%) and EBITDA of EUR 56.8 million (–28.8%) below the previous
year’s level
• Cost reductions with a run rate of more than EUR 10 million being
implemented, of which EUR 2.7 million are already recognised in profit
or loss in Q1-3/2023
• EBITDA outlook for the full year confirmed at the lower end of the
original range at around EUR 70 million
• Earnings after tax still burdened by the now sold medical business
Vienna, 8 November 2023 – In the first three quarters of 2023, the
Semperit Group performed solidly in a challenging market environment
characterised by high inflation and a weak economy. Revenue of EUR 547.6
million was generated, which was 7.7% below the previous year’s figure.
EBITDA from continued operations amounted to EUR 56.8 million (1-9 2022:
EUR 79.8 million), which included one-time effects of around EUR 6.6
million from the transaction costs for the acquisition of the Rico Group,
from profits recognised in advance in the purchase price allocation and
from one-time severance payments for changes to the Executive Board and
for reductions in headcount. At EUR 15.7 million, earnings after tax from
continued operations were positive, while earnings from the discontinued
and now sold Sempermed segment developed negatively, as expected. Total
earnings after tax thus amounted to EUR -26.8 million (1-9 2022: EUR -34.6
million).
“Our business in the first three quarters was characterised by
increasingly strong economic headwinds, in which we held our ground
solidly and countered with measures to reduce costs and increase
efficiency. At the same time, we successfully realised our transformation
into an industrial rubber and elastomers specialist with the disposal of
the medical business and took an important step towards growth with the
acquisition of the Rico Group. In addition, our new, streamlined
organisation with two powerful divisions enables us to optimally scale our
business for further profitable growth,” says Semperit CEO Karl Haider.
Earnings development in detail:
In the first nine months of 2023, continued operations of the Semperit
Group recorded revenue of EUR 547.6 million (–7.7%). The two divisions, in
which the former Industrial Sector has been reorganised, developed
differently. While the economic market environment led to a decline in
revenue of –24.2% to EUR 264.5 million in the Semperit Industrial
Applications division (SIA, including Hoses and Profiles), the Semperit
Engineered Applications division (SEA, including Form, Belting and Rico)
benefited above all from the continued strong special economic situation
for mining products and the related demand for conveyor belts as well as
the demand for specialty products in the business unit Form. Revenue in
the SEA division thus increased by 21.8% to EUR 254.9 million, of which
EUR 16.0 million was attributable to Rico (for the months of August and
September 2023). In the Surgical Operations business (production of
surgical gloves in Wimpassing including packaging in Sopron), revenue
decreased by 25,1% to EUR 31.0 million as expected.
Cost reductions being implemented
Total expenses fell by 8.8% to EUR 491.1 million. Savings in cost of
materials (–20.4%), primarily as a result of lower production volumes,
were partly offset by higher personnel expenses (+9.1%) and other
operating expenses (+5.5%), which resulted from one-time effects (in
particular the transaction costs of the Rico acquisition and one-time
severance payments in connection with the changes to the Executive Board
and the reduction in overheads in the personnel area), among other things.
The cost-cutting programmes introduced have already cut down expenses by a
total of EUR 2.7 million, of which around 85% was attributable to
personnel expenses and the remainder to other operating expenses.
EBITDA in continued operations amounted to EUR 56.8 million (–28.8%),
while the EBITDA margin was 10.4% (1-9 2022: 13.5%). Rico’s operating
contribution to EBITDA totalled around EUR 3.6 million. However, the
recognition of anticipated profits of EUR 1.1 million in the first two
months as part of the purchase price allocation and the transaction costs
of EUR 3.0 million initially reduced this contribution to around EUR –0.5
million.
EBIT in continued operations totalled EUR 30.9 million (1-9 2022: EUR 48.5
million), while earnings after tax from continued operations were EUR 15.7
million (1-9 2022: EUR 30.7 million). Earnings after tax from discontinued
operations were clearly negative at –42.4 million (1-9 2022: EUR –65.3
million). However, they included a reclassification of historical currency
translation differences of EUR –23.5 million due to deconsolidation. Total
earnings after tax (from continued and discontinued operations) amounted
to EUR –26.8 million (1-9 2022: EUR –34.6 million).
Free cash flow before strategic growth investments is the net cash flow
available for strategic growth investments and debt and equity servicing.
It amounted to EUR 111.0 million for the first nine months of 2023, driven
primarily by the proceeds from the sale of the medical business, and was
used mainly for strategic growth investments in property, plant and
equipment totalling EUR 17.5 million (expansion investments for the DH5
plant in Odry and the Rico expansion in Thalheim), the acquisition of the
Rico Group and the payment of dividends.
Outlook
After a solid performance in continued operations in the first three
quarters of 2023, the Executive Board of the Semperit Group expects the
market environment to remain challenging in the coming months. For SIA, no
significant recovery in demand is expected in the short term, as the
reduction of increased customer inventories will extend into the first
half of 2024, and the leading indicators for the construction industry
(e.g.building permits in Germany) continue to decline. For SEA, the good
demand from the mining industry, healthcare and food sectors as well as
the railway sector should continue, while demand for products linked to
the construction industry and related sectors will be lower.
In anticipation of this development, countermeasures have already been
introduced. These include improvements to the product mix, cost reduction
programmes and a streamlining of processes, accompanied by an increase in
operating efficiency. Defined and already established measures for savings
include a run-rate of more than EUR 10 million. Against this backdrop, the
outlook for the 2023 financial year is confirmed, with EBITDA from
continued operations expected at the lower end of the original guidance
range at around EUR 70 million.
Overview of the main financial figures of the first 9 months of 2023:
Key performance figures of the Semperit Group,
in EUR million 1-9 2023 Change 1-9 2022
Revenue 547.6 – 7.7 % 593.4
EBITDA 56.8 –28.8 % 79.8
EBITDA margin 10.4 % – 3.1 PP 13.5 %
EBIT 30.9 – 36.3 % 48.5
EBIT margin 5.6 % – 2.5 PP 8.2 %
Earnings after tax – 26.8 – 22.7 % – 34.6
Earnings per share, in EUR – 1.29 -23.5% – 1.68
Gross cash flow 14.8 – 66.2 % 43.8
Free cash flow before strategic growth
investments 111.0 n.a. -19.6
Balance sheet key figures, in EUR million
(at balance sheet date) 30.09.2023 Change 31.12.2022
Balance sheet total 986.2 +17.0 % 842.9
Equity 414.5 –20.1 % 518.2
Equity ratio 42.0 % –19.5 PP 61.5 %
Net debt (+) / Net cash (-) 98.5 n.a. – 54.2
ESG 30.09.2023 Change 31.12.2022
Employees (at balance sheet date) 4,594 +7.6% 4,269
Segment key figures Industrial, in EUR
million 1-9 2023 Change 1-9 2022
Semperit Industrial Applications
division Revenue 264.5 – 24.2 % 349.1
EBITDA 42.7 – 43.4 % 75.4
EBIT 29.5 – 50.6 % 59.8
Semperit Engineered Applications
division Revenue 254.9 +21.8 % 209.2
EBITDA 36.4 +46.1 % 24.9
EBIT 25.8 +40.9 % 18.3
For further details please see the Semperit Group’s financial report on
the first three quarters of 2023:
[1] https://www.semperitgroup.com/en/investor-relations/
Contact:
Bettina Schragl Judit Helenyi
Director Group Communications, IR Director Investor Relations
and
Brands / Spokeswoman +43 676 8715 8310
+43 676 8715 8257 [3]judit.helenyi@semperitgroup.com
[2]bettina.schragl@semperitgroup.com
[4] www.semperitgroup.com
[5] www.linkedin.com/company/semperit-ag
About Semperit
The publicly listed Semperit AG Holding is an internationally oriented
group of companies that develops and manufactures polymer products and
sells them in over 100 countries worldwide with its two divisions,
Semperit Industrial Applications and Semperit Engineered Applications. The
Semperit Industrial Applications division focuses on industrial
applications with highly efficient production and cost leadership; they
include hydraulic and industrial hoses as well as profiles. The Semperit
Engineered Applications division comprises the production of escalator
handrails, conveyor belts, cable car rings, other engineered elastomer
products, as well as the Rico Group, and focuses on customised technical
solutions. The traditional Austrian company was founded in 1824 and is
headquartered in Vienna. The Semperit Group employs around 4,600 people
worldwide in its continued operations. The Semperit Group has 16
production sites worldwide and numerous sales offices in Europe, Asia,
Australia and America. In the 2022 financial year, the Group generated
revenue of EUR 779.8 million and EBITDA of EUR 100.5 million with its
continued operations.
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08.11.2023 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: 1767607
End of News EQS News Service
1767607 08.11.2023 CET/CEST
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