EQS-News: Semperit AG Holding: Semperit posts record result again in 2021 despite difficult conditions - revenue exceed billion-euro threshold

EQS-News: Semperit AG Holding / Key word(s): Annual Results
   Semperit AG Holding: Semperit posts record result again in 2021 despite
   difficult conditions - revenue exceed billion-euro threshold

   23.03.2022 / 07:30
   The issuer is solely responsible for the content of this announcement.

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   Press release

   Semperit posts record result again in 2021 despite difficult conditions -
   revenue exceed billion-euro threshold

   -  Consolidated sales increased by 27.4% to EUR 1,182.2 million in 2021

   - Revenue in the Industrial Sector grew by 16.2% to EUR 556.1 million and
   by 39.4% to EUR 626.1 million in the Medical Sector

   - EBITDA increased by 73.5% to EUR 361.8 million; EBITDA margin again
   significantly increased to 30.6% (2020: 22.5%)

   - EBIT again noticeably improved to EUR 315.0 million (2020: EUR 237.8
   million) and significantly increased compared to adjusted EBIT; EBIT
   margin at 26.6% (2020: 25.6%, adjusted 18.5%)

   - Free cash flow increased by 36.9% to EUR 241.2 million (2020: EUR 176.2
   million)

   - Proposed dividend of EUR 1.50 per share corresponds to dividend yield of
   5.1%

   Vienna, Austria, 23 March 2022 - The publicly listed Semperit Group again
   achieved a record result in the 2021 financial year despite the difficult
   economic climate, which was affected by the ongoing coronavirus pandemic,
   rising inflation and the consistently tense situation in the global supply
   chains. "Although the dramatic developments surrounding the Russia-Ukraine
   war naturally dampen the joy of our company's success for the second
   consecutive year, this is an outstanding achievement for which we would
   first and foremost like to thank our employees", says Petra Preining, CFO
   of Semperit AG Holding. COO Kristian Brok: "Thanks to the forward-looking,
   highly-flexible collaboration between individual corporate divisions, we
   are increasingly making a routine of successfully managing the manifold
   challenges related to raw material availability, the supply chain, the
   pricing landscape and cost increases."

   Semperit mitigated the risks associated with the aforementioned topics
   early in the 2021 reporting year and thus proactively prevented
   potentially negative impacts: "This basically creates a solid starting
   point for dealing with the expected effects of the Russian war of
   aggression on Ukraine as well as the related sanctions and restrictions,
   which will be a significant burden for European companies in the current
   financial year", says CEO Karl Haider, who assumed his role at the
   beginning of this year. Already on 9 March 2022, Semperit had indicated in
   an ad hoc release that the developments surrounding the Russia-Ukraine
   escalation are expected to have a negative effect on the company's
   forecast earnings in 2022. Industry associations are now also warning of
   production cutbacks due to raw material shortages in the rubber industry.

   Strong revenue growth in both sectors

   Notwithstanding the difficult environment already experienced in the
   previous year, the Semperit Group 2021 achieved a 27.4% increase in
   consolidated revenue, reaching EUR 1,182.2 million. This record level was
   achieved through significant revenue growth in both sectors: The
   Industrial Sector posted growth of 16.2% to EUR 556.1 million; the Medical
   Sector posted a gain of 39.4% to EUR 626.1 million. Revenue growth in the
   Industrial Sector was driven in particular by higher volumes in the
   Semperflex (+20.4%) and Semperseal (+23.7%) segments, which overall more
   than compensated for the decline in sales volumes in the Sempertrans
   segment. In contrast, sales volumes in the Medical Sector declined due to
   the limited availability of containers (-25.7% for examination and
   protective gloves) and production in Malaysia was temporarily restricted
   due to regulatory requirements under the Enhanced Movement Control Order
   (EMCO) in summer 2021. However, the significantly higher selling prices
   for examination gloves, which remain high due to the special boom in light
   of the coronavirus pandemic, more than offset these effects.

   Excellent operating income despite high inflation

   The strong revenue increases also led to a noticeable improvement in
   operating income - and this despite inflationary price developments for
   commodities, energy, and logistics. EBITDA improved by 73,5%, from EUR
   208,6 million in the 2020 financial year to EUR 361,8 million in the 2021
   financial year. The EBITDA margin was 30,6% (financial year 2020: 22,5%).
   Consolidated EBIT also increased to EUR 315,0 million in the 2021
   financial year, in contrast with EUR 237,8 million in the previous year.
   Compared to the EBIT in the 2020 financial year (EUR 171,4 million), which
   was adjusted for the impairment reversal in the Sempermed segment and the
   impairment loss in the Sempertrans segment, EBIT climbed by a significant
   83.8% in the 2021 financial year. The Semperit Group's EBIT margin
   increased from 25,6% (adjusted 18,5% in financial year 2020) to the
   current 26,6%.

   Cash expenditures on intangible assets and property, plant and equipment
   in the 2021 financial year EUR 47,9 million, above the previous year's
   level of EUR 26,4 million. The focus will increasingly be on
   growth-oriented investments.

   Free cash flow in the 2021 financial year totalled EUR 241.2 million
   compared to EUR 176,2 million in the previous year. On the one hand, this
   means that the Semperit Group is well positioned even in an increasingly
   difficult market environment and solidly prepared for the potential
   economic effects of the war in Ukraine. On the other hand, Semperit has
   expanded its growth options thanks to this strong financial base. M&A
   activities are still in the focus; however, as the market is difficult at
   the moment, Semperit is also increasingly looking at organic growth
   opportunities.

   In view of the very successful 2021 financial year, the Executive Board of
   the Semperit Group will propose a dividend of EUR 1.50 per share to the
   annual general meeting. A total of EUR 30.9 million will be distributed.
   At a share price of EUR 29.30 at the end of 2021, the dividend yield is
   5.1% (2020: 6.2%).

   Outlook

   As of H2 2021, the ongoing effects of the coronavirus pandemic have
   continued to have a positive impact on the price of medical products.
   However, in light of the significant downward trend, it can be expected
   that the price level will return to normal during the 2022 financial year.
   The results of the Semperit Group will still depend heavily on the
   availability and prices of the raw materials and consumables as well as by
   the functioning supply chains. Other key factors are the sufficient
   availability of containers to be used to deliver Semperit Group's
   products, and the availability of qualified staff. Furthermore, it is
   still difficult to forecast the effects in connection with the further
   development of the coronavirus pandemic - particularly due to the widely
   varying regional trends and their influence on the international production
   sites.

   Due to the start of a Russian war of aggression against Ukraine, the
   Russia-Ukraine conflict developed into a new economic and geopolitical
   threat beginning in late February 2022. The already observable
   consequences of this armed conflict include - to a limited extent - direct
   and indirect negative influences on the Semperit Group's sales volume and
   revenue figures, impending material bottlenecks, energy and raw material
   price increases, transport and supply chain problems, changes in the
   interest rate landscape, increased inflation expectations, and an
   increased risk of cyberattacks on companies. Material shortages of key raw
   materials and consumables for the manufacture of vulcanised rubber
   products could lead to production constraints in 2022 and consequently to
   delivery delays and restrictions. With respect to expenses, additional
   costs are expected for raw materials and consumables, input and
   intermediate products, and energy and transportation expenses. In
   addition, the current situation will have a noticeable cost-increasing
   effect on wages and salaries. Price pass-through opportunities will depend
   on the price sensitivity of the respective customers and the dynamics in
   the segment-specific product markets. With respect to interest rate
   exposure, the Semperit Group is protected against changes in interest
   rates, as all outstanding promissory note loans bear interest at a fixed
   rate. The Semperit Group's management is acting prudently and has
   initiated the evaluation of appropriate proactive measures to mitigate
   these developments at an early stage; initial packages of measures,
   particularly in the area of materials management, are already being
   successfully implemented. Current geopolitical and market developments in
   connection with the Russia-Ukraine conflict are being closely monitored,
   as are their effects on capital goods markets and the market for business
   acquisitions.

   Against the backdrop of an expected subsiding course of the COVID-19
   pandemic with declining average sales prices for medical products and
   impending material bottlenecks, supply chain issues, and sharp increases
   in input factor prices in industrial production, management expects
   another year characterised by major challenges for the Semperit Group's
   transformation process. The management of the Semperit Group expects that
   the annual result for 2022, measured in terms of earnings before interest,
   tax, depreciation and amortisation (EBITDA), is likely to fall
   significantly short of the average market expectations (EUR 100-120
   million at the beginning of March), in particular due to the
   Russia-Ukraine conflict and the related sanctions and uncertainties for
   industrial production. The exact financial impact on the expected annual
   result of the Semperit Group cannot yet be estimated at the time of
   publication of the Annual Report for 2021.

   At the end of January 2020, the Semperit Group announced that it would be
   evolving to become an industrial rubber specialist as part of its
   strategic realignment and would therefore be moving away from the medical
   sector. Although this shift has been delayed by the coronavirus pandemic,
   the newly formed Semperit Group Executive Board will be continuing with
   the planned transformation in the 2022 financial year. Measures to
   increase profitability are still high on the Executive Board's list of
   priorities. Strategic corporate development projects have the clear
   objective of organic and inorganic growth.

   Investments aimed at growth and a dividend strategy to match have been
   made possible in particular by the earnings brought about by special
   economic developments within the Sempermed segment during the 2020 and
   2021 financial years.

   Overview of the most important key financial figures in 2021

   Key figures of the Semperit-Group, in EUR
   million                                      2021       Change  2020^1
   Revenue                                      1,182.2    +27.4%  927.6
   EBITDA                                       361.8      +73.5%  208.6
   EBITDA margin                                30.6%      +8.1 PP 22.5%
   EBIT adjusted                                315.0      +83.8%  171.4
   EBIT margin - adjusted                       26.6%      +8.2 PP 18.5%
   EBIT                                         315.0      +32.5%  237.8
   EBIT margin                                  26.6%      +1.0 PP 25.6%
   Earnings after tax - adjusted                247.5      >100%   121.9
   Earnings after tax                           247.5      +27.2%  194.6
   Earnings per share (EPS), in EUR             11.99      +32.3%  9.06
   Gross cash flow                              323.4      +66.9%  193.7
   Free cash flow                               241.2      +36.9%  176.2
                                                                    
   Balance sheet key figures, in EUR million    31.12.2021 Change  31.12.2020
   Total assets                                 958.6      +25.4%  764.4
   Equity                                       540.1      +62.6%  332.3
   Net debt (+) / Net cash (-)                  -144.2     n.a.    22.1
   Net debt to EBITDA                           n.a.       n.a.    0.1
   Additions to tangible and intangible assets  56.4       +98.1%  28.5
                                                                    
   ESG                                          2021       Change  2020
   Employees (at balance sheet date)            6,948      +0.1%   6,943
                                                                    
   Sector and segment key figures, in EUR
   million                                      2021       Change  2020^1
   Industrial Sector                   Revenue  556.1      +16.2%  478.4
                                       EBITDA   82.1       +7.2%   76.6
                                       EBIT     56.8       +75.0%  32.4
   Semperflex                          Revenue  240.5      +26.6%  189.9
                                       EBITDA   51.3       +22.4%  41.9
                                       EBIT     40.0       +29.3%  30.9
   Sempertrans                         Revenue  104.5      -7.7%   113.1
                                       EBITDA   6.8        -21.3%  8.7
                                       EBIT     3.2        >100%   -14.9
   Semperform                          Revenue  90.6       +10.8%  81.8
                                       EBITDA   12.4       -17.2%  15.0
                                       EBIT     8.5        -24.3%  11.3
   Semperseal                          Revenue  120.5      +28.7%  93.6
                                       EBITDA   11.6       +4.8%   11.0
                                       EBIT     5.1        -1.6%   5.1
   Medical Sector (Sempermed)          Revenue  626.1      +39.4%  449.2
                                       EBITDA   301.1      >100%   150.4
                                       EBIT     280.9      +24.9%  224.9

    

   ^1 Adjusted for the positive non-recurring effect from the reversal of an
   impairment loss in the Sempermed segment (2020: EBIT effect: EUR +86.2
   million; earnings after taxes effect: EUR +88.8 million) and by the
   negative non-recurring effect from the impairment in the Sempertrans
   segment (2020: EBIT effect: EUR -9.8 million; earnings after tax effect:
   EUR -16.1 million).

   Additional details can be found in the Semperit Group's 2021 annual
   report.

    

   For inquiries:
   Monika Riedel
   Director Group Brand Management,
   Corporate Spokesperson
   +43 676 8715 8620
   [1][email protected]

   Judit Helenyi
   Director Investor Relations
   +43 676 8715 8310
   [2][email protected]

   [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 rubber
   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 15
   manufacturing facilities worldwide and numerous sales offices in Europe,
   Asia, Australia, and America. In 2021, the Group generated revenue of EUR
   1,182.2 million and an EBITDA of EUR 361.8 million.

    

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   23.03.2022 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:      [email protected]
   Internet:    www.semperitgroup.com
   ISIN:        AT0000785555
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 1309221


    
   End of News EQS News Service


   1309221  23.03.2022 

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