EQS-News: Semperit AG Holding shows significant annual revenue and results growth in the Industrial Sector

EQS-News: Semperit AG Holding / Key word(s): Annual Results
Semperit AG Holding shows significant annual revenue and results growth in
the Industrial Sector

22.03.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.


Press Information

Semperit shows significant annual revenue and results growth in the
Industrial Sector


• Revenue in continued operations (Industrial Sector plus production of
surgical gloves) up 29.6% to EUR 779.8 million in 2022 financial year
• EBITDA growth of 86.2% to EUR 100.5 million; EBITDA margin increased to
12.9% (2021: 9.0%)
• EBIT more than doubled to EUR 62.1 million; EBIT margin increased to
8.0% (2021: 4.2%)
• Signing of the sale of the Sempermed segment on 16 December 2022 – first
sales phase (production of examination gloves plus organisation of sales
and distribution) expected around mid-2023
• Proposal to distribute a base dividend of EUR 1.50 per share and a
conditional additional dividend of EUR 2.00 to 3.50 per share for the
2022 financial year


Vienna/Austria, 22 March 2023 – In 2022, the Semperit Group recorded a
significant increase in revenue and results in its continued operations –
particularly in the Industrial Sector – despite a challenging market
environment and a visible economic slowdown.


Sale of the Medical segment in two phases, accounting effects


In December 2022, a contract was signed with HARPS GLOBAL PTE. LTD.
(“Harps”) for the sale of the medical division, which is subject to foreign
direct investment control and competition authority approvals. The plan is
to first sell the production of examination gloves and the entire sales and
distribution organisation of the Medical Sector and, after five years at the
latest, to also transfer the production of surgical gloves in Wimpassing and
Sopron. Until this second step of the sale, surgical gloves will be produced
as contract manufacturing for Harps. The part of the Semperit Group to be
sold is presented separately in the consolidated financial statements – as a
discontinued operation in the consolidated income statement and as an item
held for sale in the balance sheet. This press release primarily refers to
continued operations, i.e., the four industrial segments and the production
of surgical gloves at the Wimpassing and Sopron sites, which will remain
with Semperit for the time being.


CEO Karl Haider comments on the past financial year: “2022 was a very
important year for Semperit: we managed to generate significant revenue
growth in a volatile business environment. With the sale of the Medical
segment, we create the opportunity to grow faster and profitably in the
Industrial business. This means that the 2022 financial year is the kick-off
for a corporate strategy focused purely on industrial elastomer


Higher sales prices drive sales growth in the Industrial Sector


In a difficult market environment characterised by high inflation and an
economic slowdown, raw material and energy-related price increases as well
as wage increases were passed on promptly through the increase in average
sales prices in the Industrial Sector. The Sempertrans segment, which was
particularly hard hit by the corona pandemic and achieved a 14% increase in
production volume in 2022 as expected, deserves special mention. The revenue
increase of 32.0% to EUR 734.0 million in the Industrial Sector was thus
largely responsible for the revenue growth of 29.6% to EUR 779.8 million in
the entire continued operations of the Semperit Group. Revenue from
continued operations in the Medical Sector (Wimpassing and Sopron) remained
virtually unchanged at EUR 45.8 million.


Industrial Sector significantly increases earnings


The increase in revenue in the Industrial Sector achieved through price
increases was accompanied by an increase in margins in continued operations:
the company was able to counteract the rising costs for material expenses
(including energy and purchased services) of +36.8%, personnel expenses of
+7.9% and other operating expenses (especially outbound freight,
non-production-related energy costs and maintenance costs) of +11.1% through
price adjustments. EBITDA grew by +86.2% from EUR 54.0 million in the
previous year to EUR 100.5 million in the 2022 financial year. The EBITDA
margin was 12.9% (2021: 9.0%). Adjusted for the net proceeds from the sale
of a property in France, EBITDA amounted to EUR 95.8 million and the EBITDA
margin was 12.3%.


EBIT from continued operations more than doubled from EUR 25.2 million in
the previous year to EUR 62.1 million in the 2022 financial year; the EBIT
margin improved significantly from 4.2% to 8.0%. EBIT adjusted for
impairments and the sale of the property amounted to EUR 65.4 million; the
adjusted EBIT margin was 8.4%. COO Kristian Brok assesses the figures as
follows: “The 2022 financial year entailed a number of unexpected challenges
along the supply and value chains. With its operating performance, the
Semperit Group has impressively demonstrated its resilience.”


Earnings after tax (continued and discontinued operations combined) amounted
to EUR –5.6 million (2021: EUR 247.5 million). The negative balance is due
to the adverse business development of the discontinued operation
(examination gloves) with earnings after tax of EUR –44 million. The
earnings per share attributable to the shareholders of Semperit AG Holding
are therefore EUR –0.27 for 2022 (2021: EUR 11.99). In contrast, earnings
after tax adjusted for the one-off effects were positive and amounted to EUR
10.9 million.


At EUR 54.5 million, cash expenditures in intangible assets and property,
plant and equipment in 2022 were above the prior-year level of EUR 47.9
million and will continue to focus increasingly on growth-oriented
investments in the future. Free cash flow amounted to EUR 0.0 million in
2022 (2021: EUR 241.2 million). CFO Helmut Sorger comments on the past
financial year: “The Russia-Ukraine conflict had implications for supply
chains, our inventory holding and the added value process. In order to
ensure the latter, we decided to temporarily increase inventories, with the
consequence that working capital increased. From a strategic point of view,
disciplined cash management is now even more important.”




For the 2023 financial year, the management of the Semperit Group expects a
decline in earnings from continued operations. This is based on the
following assumptions: The overall economic slowdown is expected to have a
noticeable impact on the Industrial Sector, especially in the first half of
the year. Inventory optimisation programmes on the part of customers are
expected to lead to restrained ordering behaviour of customers. The option
to pass on potential further cost increases to customers will depend on the
price sensitivity of the respective customers and the dynamics in the
segment-specific product markets. As a result, lower sales volumes and
increased pressure on margins are to be expected. In addition, the earnings
position of the Semperit Group may of course continue to be significantly
influenced by developments such as the Russia-Ukraine conflict: The
Executive Board continues to expect a high degree of volatility with regard
to the price development and availability of energy in Europe, which may
have a negative impact on the earnings situation. Possible uncertainty
regarding the availability of necessary raw materials and supplies and their
price development also pose a further risk. In addition, visibility
regarding the further development of the corona pandemic and the possible
effects on international production sites is still low; this applies in
particular to China, both as a location of Semperit plants and with regard
to global supply chains. Further developments in geopolitical trouble spots
are still unclear and therefore uncertain. Negative effects of inflation and
foreign currency developments require a high level of attention from the
Executive Board.


Against this backdrop, the Executive Board expects EBITDA from continued
operations of EUR 70 to 90 million for the 2023 financial year.


With regard to the sale of the medical business, a first closing is expected
in the middle of 2023. Earnings after taxes are still expected to be
burdened by the Medical Sector, as a result of the end of the corona-related
special economic situation, and after the negative second half of 2022.
Until the closing, the negative earnings development will be borne by the
Semperit Group.


The management is consistently pursuing the implementation of the
transformation into an industrial rubber specialist, focusing on organic and
inorganic growth projects. Current geopolitical and market-related
developments are closely monitored, as are their effects on capital goods
markets and possible corporate acquisitions.


Overview of the main financial figures of 2022

Key performance figures of the   2022 Change 2021
Semperit Group, in EUR million
Revenue   779.8 +29.6 % 601.8
EBITDA adjusted ^1   95.8 +77.5 % 54.0
EBITDA margin – adjusted ^1   12.3 % +3.3 PP 9.0 %
EBITDA   100.5 +86.2 % 54.0
EBITDA margin   12.9 % +3.9 PP 9.0 %
EBIT adjusted ^1   65.4 >100 % 25.2
EBIT margin – adjusted ^1   8.4 % +4.2 PP 4.2 %
EBIT   62.1 >100 % 25.2
EBIT margin   8.0 % +3.8 PP 4.2 %
Earnings after tax – adjusted ^1   10.9 -95.6% 247.5
Earnings after tax   – 5.6 n/a 247.5
Earnings per share, in EUR   – 0.27 n/a 11.99
Gross cash flow   30.5  – 90.6 % 323.4
Free cash flow   0.0 n/a 241.2
Balance sheet key figures, in EUR   31.12.2022 Change 31.12.2021
million (at balance sheet date)
Balance sheet total   842.9  – 12.1 % 958.6
Equity   518.2  – 4.1 % 540.1
Net debt (+) / Net cash (-)   – 54.2 – 62.4 % – 144.2
Net debt/EBITDA ratio   n/a n/a n/a
Additions to intangible assets and   50.1  – 11.2 % 56.4
property, plant and equipment
ESG   2022 Change 2021
    6,528  – 6.1 % 6,948
Sector and segment key figures, in   2022 Change 2021
EUR million
Industrial Sector Revenue 734.0 +32.0 % 556.1
  EBITDA 125.2 +52.5 % 82.1
  EBIT 95.9 +68.9 % 56.8
Semperflex Revenue 328.8 +36.7 % 240.5
  EBITDA 82.2 +60.1 % 51.3
  EBIT 70.2 +75.6 % 40.0
Sempertrans Revenue 151.9 +45.5 % 104.5
  EBITDA 19.7 n/a 6.8
  EBIT 15.5 n/a 3.2
Semperform Revenue 111.1 +22.7 % 90.6
  EBITDA 15.1 +22.2 % 12.4
  EBIT 10.8 +26.6 % 8.5
Semperseal Revenue 142.1 +17.9 % 120.5
  EBITDA 8.3  – 28.5 % 11.6
  EBIT – 0.6 n/a 5.1
Medical Sector (Sempermed) Revenue 324.2  – 48.2 % 626.1
  EBITDA – 15.4 n/a 301.1
  EBIT – 49.5 n/a 280.9

^1 Adjusted for the positive one-off effect of the net proceeds from the
sale of properties in France in the Sempertrans segment (2022: effect on
EBITDA, EBIT: EUR 4.7 million; earnings after tax: EUR 4.0 million), for the
negative effect of the net impairments in the Sempermed and Semperseal
segments (2022: effect on EBIT from continued operations: EUR –7.9 million;
earnings after tax in total from continued and discontinued operations: EUR
–12.3 million) and for the negative effect of the transaction costs (2022:
effect on earnings after tax: EUR –8.2 million)

For further details please see the Semperit Group’s Annual Report 2022.


Alexander Kleedorfer Judit Helenyi
Director Group Brand Management Director Investor Relations
Corporate Spokesperson +43 676 8715 8310
+43 676 8715 8464 [2]judit.helenyi@semperitgroup.com


[3] www.semperitgroup.com

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


About Semperit

The publicly listed company Semperit AG Holding is an internationally
oriented group that develops and produces 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 6,500 people worldwide in its continued and
discontinued operations, including some 3,100 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 2022 financial year, the Group
generated revenue of EUR 779.8 million and an EBITDA of EUR 100.5 million in
continued operations.



22.03.2023 CET/CEST This Corporate News was distributed by EQS Group AG.


Language: English
Company: Semperit AG Holding
Am Belvedere 10
1100 Wien
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: 1588649

End of News EQS News Service

1588649  22.03.2023 CET/CEST


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