EQS-News: Semperit AG Holding with revenue growth and stable earnings despite economic slowdown

EQS-News: Semperit AG Holding / Key word(s): Quarter Results
   Semperit AG Holding with revenue growth and stable earnings despite economic
   slowdown

   10.05.2023 / 07:31 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   Press Information

   Semperit with revenue growth and stable earnings despite economic slowdown

    

     • First quarter 2023 shows revenue increase by 2.0% to EUR 185.2 million
       in continued operations
     • Revenue in the Industrial Sector increased by 3.2% to EUR 176.4 million,
       while revenue of continued operations in the Medical Sector fell to EUR
       8.8 million
     • EBITDA in continued operations increased slightly to EUR 20.8 million,
       EBITDA margin remained unchanged at 11.2%
     • At EUR 13.2 million, EBIT slightly above the comparable period of the
       previous year, EBIT margin slightly improved to 7.1%
     • Distribution of a basic dividend of EUR 1.50 per share and a conditional
       additional dividend of EUR 3.00 per share following the sale of
       Sempermed

    

   Vienna/Austria, 10 May 2023 – The publicly listed Semperit Group recorded a
   slight increase in revenue and higher earnings in continued operations in a
   difficult market environment, which was impacted by high inflation and a
   growing economic slowdown.

    

   CEO Karl Haider commented on the quarterly results: “I am satisfied that we
   delivered a good performance in the first quarter of 2023 under the given
   global conditions. We look forward to the full year with optimism, although
   we expect business development to be subdued.”

    

   Sales prices raised in 2022 led to revenue increase in the first quarter
   2023

   The higher Group revenue in the first quarter 2023 compared to the previous
   year’s period was boosted in particular by the increase in average selling
   prices in the Industrial Sector – the price effect being in a range between
   15.2% and 29.0% – in the course of the 2022 financial year, which means that
   the price increases on the input factor side could be passed on. Sales
   volumes declined in all industrial segments except Sempertrans, where a
   positive market environment and rising demand led to volume growth of
   +22.9%. The significant Sempertrans plus was largely responsible for the
   positive revenue development of +3.2% to EUR 176.4 million in the Industrial
   Sector. The part of the Medical Sector remaining in continued operations,
   the production of surgical gloves in Wimpassing and Sopron, recorded a
   decline in revenue of –16.9% to EUR 8.8 million; as a result, revenue of the
   entire continued operations increased by only 2.0% to EUR 185.2 million.

    

   Stable earnings in the Industrial Sector with adjustment of capacities

   The revenue increase, but also the lower costs resulting from lower
   production volumes in the Semperflex, Semperseal and Semperform segments and
   the related reduction in material costs (–5.8% or EUR 5.9 million including
   energy and purchased services) helped to offset the +5.7% or EUR 2.8 million
   increase in personnel expenses and the +9.5% or EUR 2.1 million rise in
   other operating expenses (higher maintenance expenses, travel expenses and
   costs in connection with the planned acquisition of the RICO Group). As a
   result, EBITDA in continued operations increased slightly to EUR 20.8
   million. The EBITDA margin remained unchanged at 11.2%. At EUR 13.2 million,
   EBIT from continued operations was also slightly higher than in the same
   period of the previous year (1-3 2022: EUR 12.7 million). The EBIT margin
   was 7.1% (1-3 2022: 7.0%).

   Earnings after tax from continued operations amounted to EUR 8.3 million in
   the first quarter 2023. The net result after tax (continued and discontinued
   operations combined) amounted to EUR 0.4 million (1-3 2022: EUR 15.5
   million). The balance is attributable to the adverse business development of
   the discontinued operations (examination gloves) with earnings after tax of
   EUR –7.9 million (1-3 2022: EUR 8.2 million). Earnings per share
   attributable to the shareholders of Semperit AG Holding amounted to EUR 0.02
   (1-3 2022: EUR 0.75).

   In first quarter 2023, cash expenditures in intangible assets and property,
   plant and equipment were below the level of the previous year at EUR 14.5
   million (1-3 2022: EUR 17.2 million). Free cash flow amounted to EUR 7.1
   million (1-3 2022: EUR –0.1 million).

    

   Outlook

   The management of the Semperit Group expects a decline in earnings from
   continued operations in the 2023 financial year. The overall economic
   slowdown is expected to have a noticeable impact on the Industrial Sector in
   the second and third quarter 2023. Customers’ inventory optimisation
   programmes are already leading to restrained ordering behaviour as expected.
   As a result, lower sales volumes and increased pressure on margins are to be
   expected. 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.

   Against this backdrop, the Executive Board confirms the outlook for the 2023
   financial year with EBITDA from continued operations of between EUR 70 and
   90 million, but from today’s perspective expects the result to be at the
   lower end of the range.

   With regard to the sale of the medical business, a first closing is expected
   in mid-2023 or in the following months, depending on the regulatory approval
   procedures currently underway. The Medical Sector is still expected to have
   a negative impact on earnings after taxes.

   The management is consistently pursuing the implementation of the strategy
   and is focusing on organic and inorganic growth projects. In this context,
   the next successful step was taken: on 17 April 2023, the Semperit Group
   announced that it would acquire 100% of the Austrian RICO Group GmbH (RICO),
   a leading global supplier of silicone injection moulding tools and producer
   of liquid silicone components. Closing is expected in the third quarter of
   2023. The long-term potential of the transaction for the Semperit Group lies
   primarily in high-quality tooling for high-precision and complex solutions
   and the automation of production steps for the manufacture of large volumes.
   Furthermore, the acquisition will strengthen market access to North America,
   where RICO has had its own production facilities for many years.

    

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

   Key performance figures of the               1-3 2023   Change    1-3 2022
   Semperit Group, in EUR million
   Revenue                                      185.2      +2.0 %    181.5
   EBITDA                                       20.8       +2.7 %    20.3
   EBITDA margin                                11.2 %     +0.1 PP   11.2 %
   EBIT                                         13.2       +4.2 %    12.7
   EBIT margin                                  7.1 %      +0.1 PP   7.0 %
   Earnings after tax                           0.4         – 97.4 % 15.5
   Earnings per share, in EUR                   0.02        – 96.7 % 0.75
   Gross cash flow                              10.1        – 65.8 % 29.6
   Free cash flow                               7.1        +20.0 %   – 0.1
                                                                      
   Balance sheet key figures, in EUR            31.03.2023 Change    31.12.2022
   million (at balance sheet date)
   Balance sheet total                          847.6       +0.6 %   842.9
   Equity                                       518.0       – 0.0 %  518.2
   Net debt (+) / Net cash (-)                  – 66.1     +22.0 %   – 54.2
   Net debt/EBITDA ratio                        n/a        n/a       n/a
   Additions to intangible assets and           5.4         – 89.3 % 50.1
   property, plant and equipment
                                                                      
   ESG                                          1-3 2023   Change    1-3 2022
                                                6,51        – 7.1 %  7,007
                                                                      
   Sector and segment key figures, in           1-3 2023   Change    1-3 2022
   EUR million
   Industrial Sector                    Revenue 176.4      +3.2 %    171.0
                                        EBITDA  30.6       +15.7 %   26.4
                                        EBIT    23.7       +20.6 %   19.6
      Semperflex                        Revenue 72.6        – 9.0 %  79.8
                                        EBITDA  16.7        – 14.6 % 19.6
                                        EBIT    13.6        – 18.1 % 16.6
      Semperseal                        Revenue 32.0        – 12.7 % 36.6
                                        EBITDA  1.6         – 33.1 % 2.4
                                        EBIT    0.0         – 98.9 % 0.5
      Sempertrans                       Revenue 43.0       +52.0 %   28.3
                                        EBITDA  7.3        n/a       1.3
                                        EBIT    6.2        n/a       0.3
      Semperform                        Revenue 28.8       +9.8 %    26.2
                                        EBITDA  5.0        +54.3 %   3.2
                                        EBIT    3.9        +79.7 %   2.1
   Medical Sector (Sempermed)           Revenue 39.6        – 62.7 % 106.1
                                        EBITDA  – 11.6     n/a       13.3
                                        EBIT    – 13.5     n/a       7.6

   For further details please see the Semperit Group’s Report on the first
   quarter of 2023.

    

   Contact:

   Alexander Kleedorfer                      Judit Helenyi
   Director Group Brand Management           Director Investor Relations
   (Interim),                                 
   Corporate Spokesperson                    +43 676 8715 8310
   +43 676 8715 8464                         [2][email protected]
   [1][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 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.

    

    

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   10.05.2023 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:      [email protected]
   Internet:    www.semperitgroup.com
   ISIN:        AT0000785555
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 1628613


    
   End of News EQS News Service


   1628613  10.05.2023 CET/CEST

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