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][email protected]    [2][email protected]

    

   [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:      [email protected]
   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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