EANS-Adhoc: Semperit AG Holding / Successful Start in 2014 (with photo)

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Financial Figures/Balance Sheet/quarterly report

  • Revenue up 8.1% in Q1 2014 to EUR 232.7 million
  • Significant rise in EBITDA (+14.0%) and EBIT (+18.9%)
  • Growth and enhanced profitability in both sectors
  • Continuation of the good order situation expected

Vienna, May 20, 2014 - The publicly listed Semperit Group recorded the best first-quarter result in the company's history during the first three months of 2014, achieving significant increases in revenue and earnings. Revenue in the first quarter of 2014 rose 8.1% year-on-year to EUR 232.7 million from EUR 215.2 million in the prior-year period. Both Medical and Industrial Sectors contributed to growth based on strong sales performances and higher global sales. The Medical Sector once again expanded faster than the market. The more cyclically-dependent Industrial Sector succeeded in further increasing revenue and profitability.

In the first quarter of 2014, the Group's consolidated EBITDA improved by 14.0% to EUR 33.4 million from EUR 29.3 million in the previous year. EBIT climbed by 18.9% to EUR 22.3 million compared to the prior-year level of EUR 18.8 million. In addition to the strong operating development, the resolute implementation of strategic raw material management, stringent cost discipline and further efficiency improvements contributed to the rise in earnings. The EBITDA margin was up from 13.6% to 14.4%, and the EBIT margin climbed to 9.6% from 8.7% in the previous year. Semperit achieved a net result (earnings after tax) of EUR 13.1 million, constituting an increase of 5.0% from the comparable level of EUR 12.5 million in the first quarter of 2013.

"We grew faster than the market in the first quarter of 2014 because we succeeded in massively strengthening and further internationalising our sales activities. We expanded our product portfolio by adding new products which have been successful in the marketplace, and intensified our customer service. We are attracting new key accounts and further expanding the business with our existing customers", says Semperit CEO Thomas Fahnemann in assessing the current business development. "With respect to costs, we are profiting from the active management of our raw material needs as well as high capacity utilisation. The bottom line is that the good quarterly result was driven less by market growth than by the implementation of strategic measures", CEO Fahnemann adds.

Semperit continued to boast a sound capital base at the reporting date of March 31, 2014. The equity ratio remained at the high level of 49.0% compared to 48.3% at the end of 2013. Cash and cash equivalents rose from EUR 182.6 million at year-end 2013 to EUR 188.1 million due to the strong operating cash flow generation. "Semperit has operated successfully, and we are a sound footing financially. We are more or less debt-free thanks to our strong cash position, and still have a positive net liquidity of EUR 51.4 million after deducting the financing liabilities. As a consequence, the financing of future growth activities is secured", explains Semperit CFO Johannes Schmidt-Schultes.

Medical Sector: Substantial revenue and earnings increases
In the Medical Sector (the Sempermed segment), the intensified sales activities resulted in a considerable rise in sales volumes. Therefore, the ongoing negative price effects caused by the lower raw material prices were more than offset. Demand for examination gloves in Europe and Asia was good. In particular, sales showed a particularly positive development in the industrial and consumer goods sectors. The capacity at the Sempermed production plants was well utilised as in previous quarterly periods.

Revenue of the Medical Sector rose 6.9% in the first quarter of 2014 to EUR 114.1 million. EBITDA was up 28.9% to EUR 15.8 million, providing an improved EBITDA margin of 13.8% compared to 11.5% in the prior year.

Industrial Sector: Further increase in profitability
The Industrial Sector (the Semperflex, Sempertrans and Semperform segments) generated further revenue and earnings growth. All three segments further increased sales volumes, which can be mainly attributed to the expansion of sales activities and the high acceptance of new products on the part of customers. This served as the basis for opening up new markets and gaining market shares.

In the Semperflex segment, sales successes and a very good capacity utilisation of production plants led to substantial revenue and earnings growth. The hydraulic hose business in Europe developed very well, whereas momentum picked up in the American market. Demand for industrial hoses in most European markets was very satisfactory, and the globalisation drive showed further success. The Sempertrans segment achieved volume growth, especially for higher-priced product groups. High demand in Europe, South America and Africa resulted in the full capacity utilisation of its European production plants. However, negative raw material price effects led to a decline in revenue and earnings. The Semperform segment generated double-digit volume growth by gaining market shares.

Revenue of the Industrial Sector rose 9.4% in the first quarter of 2014 to EUR 118.6 million. EBITDA was up 14.4% to EUR 23.2 million, corresponding to an excellent EBITDA margin of 19.6% compared to 18.7% in the prior-year quarter. Double-digit EBIT margins were achieved in all three segments.

Outlook 2014 and multi-year targets
The Semperit Group expects a continuation of the current good level of incoming orders for the rest of 2014 as well as a satisfactory development of revenue and earnings compared to 2013. The Industrial Sector is currently profiting from good demand in all segments. The Medical Sector should continue on its dynamic growth path which is not tied to overall economic growth.

The focus of the Sempermed segment will be on further enhancing the efficiency of the individual production plants and the overall profitability of the segment. The Semperit Group assumes that global demand for examination and protective gloves will continue to rise.

A stable development is expected in the Industrial Sector in 2014 due to the fact that production capacities are already being very well utilised in all three segments. The expansion of capacities for hydraulic and industrial hoses in Odry, Czech Republic and conveyor belts at the Belchatów site in Poland is proceeding on schedule. The additional production capacities will first be available in the first half of 2015.

Semperit plans to invest about EUR 50-60 million to boost production capacities and maintain its existing facilities.

The Semperit Group reaffirms its previous growth targets of generating double-digit revenue growth on average in the years from 2010 to 2015. The Semperit Group still aims to achieve an EBITDA margin ranging between 12% and 15% and an EBIT margin of between 8% and 11% in the coming years.

The report on the first quarter of 2014 is available for download at

About Semperit
The publicly listed company Semperit AG Holding is an internationally-oriented group that develops, produces, and sells in more than 100 countries highly specialised rubber and plastic products for the medical and industrial sectors:
examination and surgical gloves, hydraulic and industrial hoses, conveyor belts, escalator handrails, construction profiles, cable car rings, and products for railway superstructures. The headquarters of this long-standing Austrian company, which was founded in 1824, are located in Vienna, and the global R & D centre is in Wimpassing, Lower Austria. The Semperit Group employs about 10,800 people worldwide, including more than 7,000 in Asia and more than 700 in Austria (Vienna and production site in Wimpassing, Lower Austria). The Group has 22 manufacturing facilities worldwide and numerous sales offices in Europe, Asia, and America. In 2013 the group generated sales of EUR 906 million and an EBITDA of EUR 133 million.

end of announcement euro adhoc

Pictures with Announcement:

issuer: Semperit AG Holding Modecenterstrasse 22 A-1030 Wien phone: +43 1 79 777-210 FAX: +43 1 79 777-602 mail: investor@semperitgroup.com WWW: www.semperitgroup.com sector: Synthetics & Plastics ISIN: AT0000785555 indexes: WBI, ATX Prime, ViDX, Prime Market, ATX Global Players

stockmarkets: official market: Wien
language: English

Digital press kit: http://www.ots.at/pressemappe/2918/aom

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Investor Relations
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