EQS-News: Semperit AG Holding posts solid half-year performance despite economic head-wind – Important steps taken in transformation into industrial rubber specialist

EQS-News: Semperit AG Holding / Key word(s): Half Year Results
Semperit AG Holding posts solid half-year performance despite economic
head-wind – Important steps taken in transformation into industrial rubber
specialist

10.08.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Corporate news/press information

Semperit posts solid half-year performance despite economic headwind –
Important steps taken in transformation into industrial rubber specialist

  

• Revenue in continued operations at EUR 374.2 million (–5.2%) and
EBITDA at EUR 43.7 million (–18.9%) below previous year’s level, as
expected
• EBITDA margin at 11.7% (1-6 2022: 13.7%) and EBIT margin at 7.6% (1-6
2022: 9.8%)
• EBITDA outlook for full year 2023 confirmed
• Acquisition of Rico Group completed as of 31 July 2023
• All regulatory approvals obtained for sale of medical business –
closing expected by end of August 2023 and payment of additional
dividend anticipated for September 2023

Vienna, 10 August 2023 – In the first half of 2023, the Semperit Group
generated revenue of EUR 374.2 million and EBITDA of EUR 43.7 million with
its continued operations. As expected, this is below the comparable
figures for the previous year (–5.2% in revenue and –18.9% for EBITDA) but
represents a thoroughly solid performance in a challenging market
environment. In the Industrial Sector, for example, the EBITDA margin was
kept almost stable at 18% despite a 4.5% drop in revenue. It should also
be noted that the result for the first half of 2023 includes negative
non-recurring effects of around EUR 4.1 million from the acquisition of
the Rico Group and as a result of changes on the Executive Board. As
expected, the result from discontinued operations developed negatively due
to the sharp decline in sales volumes and prices for gloves. Overall, the
Semperit Group’s earnings after tax for the first half of 2023 were
positive at EUR 3.9 million, compared to EUR 34.7 million in the same
period of 2022, primarily due to the end of the pandemic-related special
boom in the glove sector.

“As expected, business in the first half of the year was characterised by
economic headwinds. This led to a further reduction in inventories among
customers and to restrained order behaviour. In anticipation of this
development, we have already initiated countermeasures, which include
strict cost management, streamlining of processes and a corresponding
increase in operating efficiency.

 In addition, we took important steps in our transformation into an
industrial rubber specialist. The sale of the medical business progressed
very well. We have now received all regulatory approvals and expect the
closing to take place at the end of August 2023. We have also completed
the acquisition of the Rico Group, giving us a leading technological
position in liquid silicone and high-end tooling.

 With our new powerful organisational structure focusing on the two
divisions Industrial Applications and Engineered Applications, which cover
different customer groups, our robust balance sheet as well as the cost
reduction measures that have been initiated and will be implemented in the
future, Semperit is well positioned both in the current environment and
for further growth,” says Semperit-CEO Karl Haider.

 

Earnings development in detail:

While the Sempertrans segment continued to benefit from a positive market
environment and achieved significant volume and price growth, the
performance of the other industrial segments reflected the challenging
market environment, resulting in partially significantly lower sales
volumes at stable prices.

Consequently, the continued operations of the Semperit Group generated
revenue of EUR 374.2 million in the first half of 2023 (–5.2%
year-on-year). In the Industrial Sector, the cyclical and market-related
decline was –4.5% to EUR 355.7 million.

Savings

Total expenses decreased by 6.2% to EUR 338.6 million. Savings in cost of
materials (-14.9%), mainly as a result of lower production volumes, were
offset by higher personnel expenses (+6.1%) and other operating expenses
(+6.6%), which resulted, among other things, from one-off effects (Rico
acquisition and changes in the Executive Board). EBITDA in continuing
operations amounted to EUR 43.7 million (1-6 2022: EUR 53.9 million),
while the EBITDA margin was 11.7% (1-6 2022: 13.7%).

After depreciation and amortisation remained stable compared to the
previous year, EBIT from continued operations was EUR 28.4 million (1-6
2022: EUR 38.8 million), and the EBIT margin was 7.6%  (1-6 2022: 9.8%).
Overall, earnings after tax (from continued and discontinued operations)
were positive at EUR 3.9 million (1-6 2022: EUR 34.7 million). Earnings
per share attributable to the shareholders of Semperit AG Holding amounted
therefore to EUR 0.20 (1-6 2022: EUR 1.68).

At EUR 21.9 million, cash expenditures in intangible assets and property,
plant and equipment in the first half of 2023 were below the prior-year
level (1-6 2022: EUR 28.4 million). Free cash flow (the balance of cash
flow from operating activities and cash flow from investing activities)
amounted to EUR 2.3 million after EUR –4.6 million in the previous year.

Outlook

The Executive Board of the Semperit Group expects the market environment
to remain challenging in the second half of 2023. It will be characterised
by economic headwinds and, on the customer side, by inventory reductions
and more short-term ordering behaviour. As a result, lower sales volumes
and increased price pressure are to be expected overall.

As part of the focus on the two divisions Industrial Applications and
Engineered Applications and the associated leaner organisation, further
savings are to be achieved in overheads. Against this backdrop, the
outlook for the 2023 financial year is confirmed, according to which
EBITDA from continued operations is expected to be at the lower end of the
range between EUR 70 million and EUR 90 million.

The closing of the sale of the medical business, which includes the
transfer of the production of examination gloves and porcelain cloth
moulds for the glove manufacturing in Malaysia as well as the global sales
and distribution units to the buyer HARPS, is expected for the end of
August 2023 from today’s perspective. If all conditions are met, the
payment of the conditional additional dividend of EUR 3.0 per share
resolved by the Annual General Meeting can then be made in the course of
September 2023. Until the closing of the transaction, the medical business
will continue to burden the development of the Semperit Group’s after-tax
earnings.

 

Overview of the main financial figures of the first half of 2023

Key performance figures of the   1-6 2023 Change 1-6 2022
Semperit Group, in EUR million
Revenue   374.2  –5.2% 394.8
EBITDA   43.7  –18.9% 53.9
EBITDA margin   11.7% –2.0 PP 13.7%
EBIT   28.4  –26.8% 38.8
EBIT margin   7.6% –2.2 PP 9.8%
Earnings after tax   3.9  –88.6% 34.7
Earnings per share, in EUR   0.20  –88.0% 1.68
Gross cash flow   17.6  –62.6% 47.0
Free cash flow   2.3 n.a. –4.6
         
Balance sheet key figures, in EUR   30.06.2023 Change 31.12.2022
million (at balance sheet date)
Balance sheet total   801.5  –4.9% 842.9
Equity   486.0  –6.2% 518.2
Equity ratio   60.6% –0.9 PP 61.5%
Net debt (+) / Net cash (–)   –25.9 +52.2% –54.2
         
ESG   30.06.2023 Change 31.12.2022
 Employees (at balance sheet date)   6,282  –3.8% 6,528 
         
Sector and segment key figures, in   1-6 2023 Change 1-6 2022
EUR million
Industrial Sector Revenue 355.7  –4.5% 372.3
  EBITDA 64.2  –5.6% 68.0
  EBIT 50.3  –7.7% 54.5
     Semperflex Revenue 138.2  –20.5% 173.7
  EBITDA 32.6  –30.4% 46.8
  EBIT 26.4  –35.5% 40.9
     Semperseal Revenue 64.2  –14.5% 75.1
  EBITDA 4.1  –33.9% 6.3
  EBIT 1.2 –58.5% 2.8
     Sempertrans Revenue 93.6 +34.1% 69.8
  EBITDA 16.7 n.a. 6.6
  EBIT 14.3 n.a.  4.7
     Semperform Revenue 59.7 +11.2% 53.7
  EBITDA 10.7 +30.1% 8.3
  EBIT 8.5 +39.2% 6.1
Medical Sector (Sempermed) Revenue 81.6  –58.8% 198.3
  EBITDA –20.3 n.a. 15.6
  EBIT –24.9 n.a. 2.9

For further details please see the Semperit Group’s Financial Report on
the six months of 2023.

  

Contact:

Bettina Schragl Judit Helenyi
Director Group Communications, IR Director Investor Relations
and     Brand Management / Spokeswoman  
+43 676 8715 8257 +43 676 8715 8310
[1]bettina.schragl@semperitgroup.com [2]judit.helenyi@semperitgroup.com

 

[3] www.semperitgroup.com

[4] 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 products made of rubber
and sells them in over 100 countries worldwide with its two divisions
Industrial Applications and Engineered Applications. The Industrial
Applications division focuses on industrial applications with highly
efficient production and cost leadership; these include hydraulic and
industrial hoses as well as profiles. The Engineered Applications division
comprises escalator handrails, conveyor belts, cable car rings, other
engineered elastomer products as well as the RICO Group and focuses on
customised technical solutions. The Semperit Group employs around 6,500
people worldwide in its continuing and discontinued operations, including
some 3,100 in Asia and approximately 900 in Austria (Vienna and production
site Wimpassing, Lower Austria). At the end of 2022, the Group had 16
manufacturing facilities 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 an EBITDA of EUR 100.5 million
in continuing operations.

 

 

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10.08.2023 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: 1700161

 
End of News EQS News Service

1700161  10.08.2023 CET/CEST

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