EQS-News: Semperit strengthened for further growth after transformation year – earnings 2023 still burdened by sold medical business
EQS-News: Semperit AG Holding / Key word(s): Annual Results
Semperit strengthened for further growth after transformation year –
earnings 2023 still burdened by sold medical business
19.03.2024 / 07:34 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Semperit strengthened for further growth after transformation year –
earnings 2023 still burdened by sold medical business
• Continued operations with revenue of EUR 721.1 million (–7.5%), EBITDA
of EUR 71.8 million
(–28.5%) and positive earnings after tax of EUR 24.9 million (–35.2%)
• Cost reductions with a run rate of more than EUR 10 million p.a. are
being implemented, with an effect on earnings of EUR 5.8 million
already in 2023
• EBITDA to increase to around EUR 80 million in the 2024 financial year
• Dividend of EUR 0.5 per share to be proposed to the Annual General
Meeting
Vienna, March 19, 2024 – The Semperit Group performed solidly in a
challenging market environment characterized by high inflation and a weak
economy in the 2023 financial year. Revenue of EUR 721.1 million was
generated, which was 7.5% below the previous year’s figure. Cost-cutting
programs introduced at an early stage already had an impact of
EUR 5.8 million on earnings. Continued operations generated EBITDA
adjusted for one-off expenses of EUR 81.7 million (–14.7%) and unadjusted
EBITDA of EUR 71.8 million (–28.5%). Earnings after tax from continued
operations were positive at EUR 24.9 million, while the loss from the
medical business, which has been sold, had a significant negative impact
as expected. Earnings after tax therefore amounted to EUR –17.1 million.
“The 2023 financial year was eventful and at the same time formative for
Semperit, as it marks our repositioning as an elastomer specialist purely
for the industrial sector. The most important milestones were the sale of
the medical business and the acquisition of the liquid silicone specialist
Rico, which complements our product range ideally and in attractive
markets,” says Semperit CEO Karl Haider. “The Semperit Group is thus in a
strong position to further expand its position as a leading provider of
advanced and sustainable elastomer products and solutions.”
“The economic environment was challenging in 2023, but our cost-cutting
measures are taking effect. In addition, we invested in our organic growth
projects including the construction of a highly automated, additional
hydraulic hose production at our site in Odry in the Czech Republic,
already Europe’s largest hose factory. With this focus we are setting a
new benchmark in cost leadership and strengthening our competitiveness as
a top global player. In the liquid silicone sector, we are investing in
additional capacities in Thalheim and thus also in our technological lead
in injection molding tools and automation.”
Robust financial base and outlook
The Semperit Group has a robust balance sheet and financial base with an
equity ratio of 45.3%, net financial debt of EUR 115.2 million and cash
and cash equivalents of EUR 112.7 million.
Semperit expects the market environment to remain challenging in the
coming months. No significant recovery in demand is expected for the
Semperit Industrial Applications division in the short term, as the
reduction of increased customer inventories is expected to extend into the
first half of 2024. In addition, demand from relevant customer industries
(including construction machinery and agricultural machinery) continues to
decline or does not yet show any signs of recovery. For the Semperit
Engineered Applications division, however, the good demand from the
mining, healthcare, food and railroad industries should continue.
Against this background and the initiated cost measures, EBITDA is
expected to be around EUR 80 million in 2024. The Executive Board will
propose the distribution of a dividend of EUR 0.5 per share at the Annual
General Meeting on April 23, 2024.
Earnings development 2023 in detail:
The continued operations of the Semperit Group recorded revenue of
EUR 721.1 million (–7.5%) in the 2023 financial year. The two divisions,
in which the former Industrial Sector has been reorganized, developed
differently. While the difficult economic market environment in the
Semperit Industrial Applications division (SIA, comprising Hoses and
Profiles) led to a decline in sales volumes and thus revenue by –26.5% to
EUR 330.8 million in the 2023 financial year, the Semperit Engineered
Applications division (SEA, comprising Form, Belting and Rico) benefited
primarily from the ongoing strong demand for mining products and the
associated demand for conveyor belts as well as the demand for special
products for formed parts. Revenue in the SEA division thus increased by
23.7% to EUR 351.0 million, of which EUR 37.2 million was attributable to
Rico (for the months of August to December 2023). In Surgical Operations
(contract manufacturing of surgical gloves in Wimpassing including
packaging in Sopron for HARPS), revenue fell as expected by 23.3% to
EUR 42.1 million.
Cost reductions take effect
Total expenses fell by 7.7% to EUR 649.2 million. Savings in cost of
materials (–19.4%), primarily as a result of lower production volumes,
were partly offset by higher personnel expenses (+11.7%) and other
operating expenses (+2.8%), which resulted from one-off effects (in
particular the transaction costs of the Rico acquisition and higher
IT-related expenses in connection with the sale of the medical business),
among other things. The cost-cutting programs introduced have already cut
down expenses by a total of EUR 5.8 million, of which around 85% was
attributable to personnel expenses and the remainder to other operating
expenses.
EBITDA in continued operations amounted to EUR 71.8 million (previous
year: EUR 100.5 million) and the EBITDA margin to 10.0% (previous year:
12.9%). The Rico Group’s operating contribution to EBITDA totaled around
EUR 7.6 million. However, the profits recognized in advance of
EUR 3.0 million as part of the purchase price allocation and transaction
costs of EUR 3.3 million initially reduced this contribution to around
EUR 1.2 million.
Adjusted for special effects amounting to around EUR 9.9 million, EBITDA
totaled EUR 81.7 million (previous year: EUR 95.8 million). These are
transaction costs for the acquisition of the Rico Group, profits
recognized in advance in the purchase price allocation, one-off severance
payments for changes to the Executive Board and for reductions in
headcount, as well as one-off expenses (IT) for the sale of the medical
business. The adjusted EBITDA margin 2023 amounted to 11.3% (previous
year: 12.3%).
EBIT from continued operations amounted to EUR 34.6 million (previous
year: EUR 62.1 million), earnings after tax to EUR 24.9 million (previous
year: EUR 38.4 million) and earnings after tax from discontinued
operations to
EUR –41.9 million (previous year: EUR –44.0 million). The latter included
a reclassification of historical currency translation differences of EUR
–23.5 million due to the deconsolidation.
Overall, earnings after tax (from continued and discontinued operations)
were negative at EUR –17.1 million (previous year: EUR –5.6 million).
Earnings per share attributable to the shareholders of Semperit AG Holding
thus amounted to EUR –0.82 in the 2023 financial year (previous year: EUR
–0.27).
Free cash flow is the net cash flow adjusted for interest payments that is
available for strategic growth investments, dividends and the repayment of
debt. It amounted to EUR 26.3 million in the 2023 financial year (previous
year:
EUR –2.8 million). Also considering the proceeds from the sale of
Examination Operations (medical business), results in EUR 111.5 million
(previous year: EUR –2.8 million).
Overview of the main financial figures of the financial year 2023:
Key figures of the Semperit Group, in EUR million 2023 Change 2022
Revenue 721.1 –7.5% 779.8
EBITDA adjusted 81.7 –14.7% 95.8
EBITDA margin adjusted 11.3% –0.9PP 12.3%
EBITDA 71.8 –28.5% 100.5
EBITDA margin 10.0% –2.9 PP 12.9%
EBIT 34.6 –44.3% 62.1
EBIT margin 4.8% –3.2 PP 8.0%
Earnings after taxes from continued operations 24.9 –35.2% 38.4
Earnings after taxes from discontinued operations –41.9 –4.6% –44.0
Earnings after tax –17.1 n/a. –5.6
Earnings per share (EPS), in EUR –0.82 n/a –0.27
Free cash flow before the sale of companies 26.3 n/a –2.8
Balance sheet key figures, in EUR million 31.12.2023 Change 31.12.2022
Total assets 937.9 +11.3% 842.9
Equity 425.3 –17.9% 518.2
Equity ratio 45.3% –16.1 PP 61.5%
Net Financial Debt (+) / Net Financial
Surplus (–) 115.2 n.a. –54.2
ESG 31.12.2023 Change 31.12.2022
Employees (at balance sheet date) 4,576 +1.6% 4,506
Segment key figures, in EUR million 2023 Change 2022
Division Semperit Industrial Applications Revenue 330.8 –26.5% 450.2
EBITDA 46.9 –46.8% 88.0
EBIT 29.7 –56.2% 67.9
Division Semperit Engineered Applications Revenue 351.0 +23.7% 283.8
EBITDA 50.5 +35.8% 37.2
EBIT 33.2 +18.4% 28.1
For further details please see the Semperit Group’s annual report 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, produces and sells high-quality
elastomer products and applications for industrial customers in over 100
countries worldwide through its two divisions Semperit Industrial
Applications and Semperit Engineered Applications. With its highly
efficient production and cost leadership, the Semperit Industrial
Applications division focusses on industrial applications in connection
with large-scale production, including 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 customized technical solutions. The traditional Austrian
company was founded in 1824 and is headquartered in Vienna. The Semperit
Group employs around 4,600 people worldwide and has 16 production sites
and numerous sales offices in Europe, Asia, Australia and America. In the
2023 financial year, the Group generated revenue of EUR 721.1 million and
EBITDA of EUR 71.8 million.
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19.03.2024 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: 1861347
End of News EQS News Service
1861347 19.03.2024 CET/CEST
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