EQS-News: Semperit AG Holding delivers a strong performance in the first quarter but is behind the exceptionally high results from the corresponding period as expected

EQS-News: Semperit AG Holding / Key word(s): Quarterly / Interim
   Statement/Quarter Results
   Semperit AG Holding delivers a strong performance in the first quarter but
   is behind the exceptionally high results from the corresponding period as
   expected

   18.05.2022 / 07:30
   The issuer is solely responsible for the content of this announcement.

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   Semperit delivers a strong performance in the first quarter but is behind
   the exceptionally high results from the corresponding period as expected

     • Revenue at Group level down on Q1 in 2021, an exceptional year, by a
       comparatively moderate -14.2% to EUR 277.0 million
     • Significant growth of Industrial Sector by 31.4% to EUR 171.0 million,
       partially compensating for -45.0% drop in revenue to EUR 106.1 million
       in the Medical Sector
     • EBITDA declined as expected by -70.1% to EUR 36.5 million and EBITDA
       margin down -24.6 percentage points to 13.2%
     • EBIT declined as expected by -78.6% to EUR 23.7 million and EBIT
       margin down -25.7 percentage points to 8.6%
     • Decrease in free cash flow to EUR -0.1 million (Q1 2021: EUR 38.8
       million)
     • 2021 dividend payment of EUR 1.50 per share equating to return of 5.1%

   Vienna, Austria, 18 May 2022 – The publicly listed Semperit Group recorded
   a strong performance in the first quarter of 2022, despite the fading of
   the exceptional boom in the Medical Sector brought about by the pandemic
   and the extremely challenging geopolitical situation. Nevertheless, the
   company is behind its exceptional results from the same period in the
   previous year as expected. “Despite the predicted declines compared to
   last year, our Group recorded a strong performance in the first three
   months of 2022, predominantly due to the positive results in the
   Industrial Sector on the whole”, said Karl Haider, CEO of the Semperit
   Group.

   “We may have a successful quarter behind us, but the challenging market
   conditions and our Group’s tendency to not record such a strong
   performance during the second half of the year mean, we cannot rely on the
   assumption that we will be able to sustain these positive results as the
   year goes on”, added Petra Preining, CFO of the Semperit Group. In fact,
   it has to be expected that the Group will see the delayed negative impact
   of supply chain and raw material supply issues caused by the war in
   Ukraine and other developments influenced by market conditions over the
   coming months. It is on this basis that Semperit published a profit
   warning for the 2022 annual result on 9 March 2022.

   Strong increase in revenue in Industrial Sector

   Faced with extremely challenging market conditions exacerbated by high
   inflation, rising costs for raw materials, energy, wages and
   transportation, and the war in Ukraine since the end of February, the
   Semperit Group recorded a -14.2% drop in revenue at the Group level
   compared to the first quarter 2021, taking the figure down to EUR 277.0
   million. However, the Industrial Sector recorded a significant increase in
   revenue of 31.4% to EUR 171.0 million. This can be attributed primarily to
   the active increase of average sales prices across all segments, with most
   increases in raw material and energy costs being passed on promptly. By
   contrast, the Medical Sector recorded a decline in revenue of
   -45.0% to EUR 106.1 million. This was caused by the major drop in prices
   following the end of the exceptional boom in personal protective equipment
   business brought about by the pandemic. The sales prices were still ahead
   of the pre-pandemic levels but continue to fall compared to the previous
   periods.

   Results down due to end of exceptional boom brought about by the pandemic

   The decline in revenue compared to the previous year and the rising costs
   for materials (including energy and purchased services; +12.2%), staff
   (+11.0%), and other operating expenses (especially outgoing freight costs
   and energy costs outside of production; +37.8%) had a negative impact on
   the operating results. Having increased sharply in the last two years due
   to the exceptional boom brought about by the pandemic, the EBITDA dropped
   by -70.1% from EUR 122.2 million in Q1 2021 to EUR 36.5 million. The
   EBITDA margin was 13.2% (Q1 2021: 37.8%). The EBIT dropped to EUR 23.7
   million in first quarter of 2022, compared to EUR 110.8 million in the
   previous year. The Semperit Group’s EBIT margin therefore decreased from
   34.3% in Q1 2021 to 8.6% as it now stands. However, this means that the
   earnings figures are all above the pre-pandemic level in the first quarter
   of 2019.

   Cash expenditures on intangible assets and property, plant and equipment
   in Q1 2022 were EUR 17.2 million, putting them above the previous year’s
   level of EUR 10.2 million. Going forward, there will be an increasing
   focus on investments to drive growth in the Industrial Sector in
   particular.

   During the first quarter of 2022, the free cash flow amounted to EUR -0.1
   million in total compared to EUR 38.8 million in the same period in the
   previous year. This was mainly due to the lower results but was also
   negatively influenced by the conscious decision to build up the trade
   working capital, in particular, the further development of security
   warehouses. The level of investment also jumped up during this period,
   which added to the reduction.

   Outlook

   Following the special economic situation as a result of the pandemic and
   the high demand for medical products in 2021, price levels are now
   expected to normalise in the course of the 2022 financial year. However,
   it is still difficult to forecast the effects in connection with the
   further development of the COVID-19 pandemic, particularly due to the
   widely varying regional trends and their influence on the international
   production sites. This is currently evident, for example, in the recent
   developments in China. The results of the Semperit Group will continue to
   depend heavily on the availability and prices of the requisite raw
   materials, the supply chain, energy price trends, the sufficient
   availability of containers to be used to deliver its products, and the
   availability of qualified staff.

   The start of the Russian war of aggression against Ukraine in late
   February 2022 introduced a new economic and geopolitical threat that put
   Europe as a place of business at a competitive disadvantage. The
   consequences of this armed conflict already being observed 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 polymer products could lead to production constraints in 2022,
   during the second half of the year in particular, and consequently to
   delivery delays and restrictions.

   Despite the very positive first quarter, the management of the Semperit
   Group expects that the annual result for 2022 is likely to fall
   significantly short of the average market expectations, which were still
   EUR 100–120 million at the beginning of March 2022, in particular due to
   the Russia-Ukraine war and the related sanctions and uncertainties for
   industrial production. This is primarily due to the anticipated negative
   effects in the second half of the year, measured by EBITDA. The exact
   financial impact on the expected annual result of the Semperit Group
   cannot yet be estimated at the time of publication of the report for Q1
   2022.

   The newly formed Semperit Group Executive Board is pursuing the goal of
   transforming the company into an industrial polymer specialist as part of
   a strategic realignment as announced in January 2020. Measures to increase
   profitability are still high on the Executive Board’s list of priorities.
   Strategic corporate development projects have the clear objective of
   inorganic and organic growth.
    

   Overview of the key financial figures in Q1 2022
    

   Key Figures of the Semperit Group, in EUR
   million                                     Q1 2022    Change   Q1 2021
   Revenue                                     277.0       –14.2%  323.1
   EBITDA                                      36.5        –70.1%  122.2
   EBITDA margin                               13.2%      –24.6 PP 37.8%
   EBIT                                        23.7        –78.6%  110.8
   EBIT margin                                 8.6%       –25.7 PP 34.3%
   Earnings after tax                          15.5        –81.8%  85.5
   Earnings per share (EPS), in EUR            0.75        –81.8%  4.13
   Gross cash flow                             29.6        –75.0%  118.7
   Free cash flow                              –0.1       >100%    38.8
                                                                    
   Balance sheet key figures, in EUR million   31.03.2022 Change   31.12.2021
   Total assets                                996.7      +4.0%    958.6
   Equity                                      560.4      +3.8%    540.1
   Net debt (+) / Net cash (-)                 –144.0     –0.2%    –144.2
   Net debt to EBITDA                          n.a.       n.a.     n.a.
   Additions to tangible and intangible assets 10.0        –82.3%  56.4
                                                                    
   ESG                                         Q1 2022    Change   Q1 2021
   Employees (at balance sheet date)           7,007      +0.1%    7,001
                                                                    
   Sector and segment key figures, in EUR
   million                                     Q1 2022    Change   Q1 2021
   Industrial Sector               Revenue     171.0      +31.4%   130.1
                                   EBITDA      26.4       +28.1%   20.6
                                   EBIT        19.6       +35.0%   14.5
      Semperflex                   Revenue     79.8       +45.9%   54.7
                                   EBITDA      19.6       +58.9%   12.3
                                   EBIT        16.6       +73.9%   9.6
      Sempertrans                  Revenue     28.3       +5.1%    26.9
                                   EBITDA      1.3        +23.6%   1.0
                                   EBIT        0.3        +75.3%   0.2
      Semperform                   Revenue     26.2       +32.5%   19.8
                                   EBITDA      3.2        +5.1%    3.1
                                   EBIT        2.1        +0.4%    2.1
      Semperseal                   Revenue     36.6       +27.5%   28.7
                                   EBITDA      2.4         –43.8%  4.2
                                   EBIT        0.5         –80.4%  2.6
   Medical Sector (Sempermed)      Revenue     106.1       –45.0%  192.9
                                   EBITDA      13.3        –87.3%  105.3
                                   EBIT        7.6         –92.4%  100.2

    

   You can find further information in the Semperit Group’s report on the
   first quarter of 2022.

   For queries, please contact:

   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 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 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 the 2021 financial year, the Group
   generated revenue of EUR 1,182.2 million and an EBITDA of EUR 361.8
   million.

    

    

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   18.05.2022 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: 1354949


    
   End of News EQS News Service


   1354949  18.05.2022 

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