EQS-News: Semperit AG Holding / Key word(s): Half Year
Results/Miscellaneous
Semperit increases profitability in the first half of 2024
13.08.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════
Semperit increases profitability in the first half of 2024
• EBITDA up 8% to EUR 47.3 million, earnings after tax more than doubled
• Free cash flow significantly improved to EUR 23.6 million
• Cost-cutting program takes effect: cost reductions of EUR 14.4
million, of which
EUR 8.6 million in H1
• EBITDA guidance confirmed at around EUR 80 million for 2024
• Medium-term targets set until 2026: EBITDA to increase to around EUR
120 million
Vienna, August 13, 2024 – In the first half of 2024, the Semperit Group
increased EBITDA by 7.9% to EUR 47.3 million in a still challenging market
environment and more than doubled earnings after tax to EUR 9.6 million
(previous year: EUR 3.9 million). At EUR 345.5 million, revenue was just
below the previous year’s level (–2.9%). The cost-cutting programs
initiated early in 2023 reduced expenses by a total of EUR 14.4 million,
of which EUR 8.6 million was attributable to the first half of 2024. The
EBITDA margin in the first half of the year thus improved to 13.7%
(previous year: 12.3%). The EBITDA guidance for 2024 as a whole is
confirmed at around EUR 80 million.
“Economic headwinds continue as expected, but Semperit remains well on
track and significantly increased profitability in the first half of 2024.
Our cost-cutting program is taking effect, and our strategy of focusing on
industrial customers, investing in our growth and further increasing sales
excellence and customer proximity is showing positive results,” says
Semperit CEO Karl Haider. “From today’s perspective, the challenging
market environment will continue into 2025 in any case. However, Semperit
stands on a strong and healthy foundation. We continue to work on
increasing our efficiency and effectiveness for the next upswing and are
thus creating the conditions to outperform the market."
Continuation of profitable growth
Semperit will continue its profitable growth in the coming years. This is
reflected by the medium-term targets defined by the Executive Board until
2026. The company plans to increase Group revenue to more than EUR 900
million by 2026 (2023: EUR 721.1 million or adjusted(1)(1) EUR 679.0
million). EBITDA is expected to increase by more than 50% to around EUR
120 million by 2026 (2023: EUR 71.8 million or adjusted¹ EUR 78.0
million).
Increased free cash flow and solid financial base
Free cash flow is the net cash flow adjusted for interest payments that is
available for strategic growth investments, dividends and the repayment of
debt. It improved significantly to EUR 23.6 million in the first half of
2024, compared with EUR 1.8 million in the same period of the previous
year. Including the net payment from the second and final closing for the
sale of the medical business in the amount of EUR 6.6 million, free cash
flow after the sale of companies amounted to EUR 30.2 million (previous
year: EUR 1.8 million).
The Semperit Group has a robust balance sheet and financial base with an
equity ratio of 45.7% and a leverage ratio measured by net financial debt
in relation to EBITDA of a conservative 1.6. Liquidity reserves amounted
to EUR 124.0 million, and undrawn credit lines of EUR 100.0 million are
also available.
Earnings development in H1 2024 in detail:
The Semperit Group focuses exclusively on industrial customers with the
two divisions Semperit Industrial Applications (SIA) and Semperit
Engineered Applications (SEA) and generated revenue of EUR 345.5 million
(–2.9%) in the first half of 2024. The two divisions developed differently
depending on the market environment and customer sectors. While the
persistently challenging economic situation at SIA (Hoses and Profiles)
led to a decline in sales volumes and thus revenue by –20.6% to EUR 152.8
million, the SEA division (Form, Belting and Rico/Liquid Silicone)
benefited above all from the acquisition of Rico and from higher sales
volumes at Form. The SEA division’s revenue thus increased by 18.0% to EUR
192.8 million, of which EUR 47.0 million was attributable to Rico.
Total expenses decreased by 4.5% to EUR 303.7 million. Cost of materials
fell by EUR 23.3 million or 13.8% to EUR 145.1 million (previous year: EUR
168.3 million). This is primarily due to easing of the purchase prices of
raw materials and lower sales volumes in individual business divisions.
Personnel expenses increased to EUR 112.9 million in the first half of
2024 (+11.9% compared to EUR 100.9 million in the same period in 2023),
primarily as a result of the Rico takeover. Other effects included
inflation-related wage and salary increases as well as capacity-related
adjustments to headcount, and the cost program. Adjusted for Rico,
personnel expenses fell by 9.7% year-on-year. At EUR 45.8 million, other
operating expenses were 6.1% lower than in the previous year (previous
year: EUR 48.8 million), which was primarily due to savings in consulting
expenses and significantly lower complaint expenses.
Savings of more than EUR 14 million
The cost-cutting programs introduced early in 2023 already reduced
expenses by a total of EUR 14.4 million, of which EUR 8.6 million became
effective in the first half of 2024. Overall, around 83% of the savings
relate to personnel expenses and the remainder to other operating
expenses.
EBITDA improved by 7.9% to EUR 47.3 million (previous year: EUR 43.8
million) and the EBITDA margin to 13.7% (previous year: 12.3%).
Regular depreciation and amortization increased to EUR 22.9 million
(previous year: EUR 14.8 million), primarily as a result of the
acquisition of the Rico Group. EBIT therefore totaled EUR 23.7 million
(previous year: EUR 29.1 million).
The financial result amounted to EUR –7.9 million (previous year: EUR –2.5
million), which was due to an increase in bank liabilities for the
financing of growth projects compared to the previous year. Tax expenses
fell to EUR 6.3 million (previous year: EUR 8.0 million).
Earnings after tax from continued operations were positive at EUR 9.5
million (previous year: EUR 18.6 million), while earnings after tax from
discontinued operations amounted to EUR 0.1 million (previous year: EUR
–14.7 million).
Overall, earnings after tax (from continued and discontinued operations)
more than doubled to EUR 9.6 million (previous year: EUR 3.9 million).
Earnings per share attributable to the shareholders of Semperit AG Holding
thus increased significantly to EUR 0.47 in the first half of 2024
(previous year: EUR 0.20).
Overview of the main financial figures of the first half year of 2024:
Key figures of the Semperit Group, in EUR
million 1-6 2024 Change 1-6 2023^1
Revenue 345.5 –2.9% 355.7
EBITDA 47.3 +7.9% 43.8
EBITDA margin 13.7% +1.4 PP 12.3%
EBIT 23.7 –18.6% 29.1
EBIT margin 6.9% –1.3 PP 8.2%
Earnings after tax 9.6 >100% 3.9
Earnings per share (EPS), in EUR 0.47 >100% 0.20
Free cash flow before the sale of companies 23.6 >100% 1.8
Balance sheet key figures, in EUR million 06/30/2024 Change 12/31/2023
Total assets 930.2 –0.8% 937.9
Equity 424.7 –0.1% 425.3
Equity ratio 45.7% –0.3 PP 45.3%
Net Financial Debt (+) / Net Financial
Surplus (–) 118.4 +2.8% 115.2
Segment key figures, in EUR million 1-6 2024 Change 1-6 2023
Division Semperit Industrial
Applications Revenue 152.8 –20.6% 192.3
EBITDA 31.0 –12.1% 35.3
EBIT 21.7 –18.0% 26.4
Division Semperit Engineered
Applications Revenue 192.8 +18.0% 163.4
EBITDA 26.7 –7.6% 28.9
EBIT 13.2 –44.6% 23.9
¹ The comparative figures were adjusted.
For further details see Semperit’s report on the first half year of 2024:
(2)https://www.semperitgroup.com/investor-relations/
Contact:
Bettina Schragl Judit Helenyi
Director Group Communications and Director Investor Relations
Capital Markets / Spokeswoman
+43 676 8715 8257 +43 676 8715 8310
(3)bettina.schragl@semperitgroup.com (4)judit.helenyi@semperitgroup.com
(5)www.semperitgroup.com
(6)www.linkedin.com/company/semperit-ag
About Semperit
The publicly listed Semperit AG Holding is an internationally oriented
group of companies that develops, produces and sells high-quality
elastomer products and applications for industrial customers in over 100
countries worldwide through its two divisions, Semperit Industrial
Applications and Semperit Engineered Applications. With its highly
efficient production and cost leadership, the Semperit Industrial
Applications division focuses on industrial applications in connection
with large-scale production, including hydraulic and industrial hoses as
well as profiles. The Semperit Engineered Applications division comprises
the production of escalator handrails, conveyor belts, cable car rings,
other engineered elastomer products, as well as the Rico Group, and
focuses on customized technical solutions. The traditional Austrian
company was founded in 1824 and is headquartered in Vienna. The Semperit
Group employs around 4,200 people worldwide and has 16 production sites
and numerous sales offices in Europe, Asia, Australia and America. In the
2023 financial year, the Group generated revenue of EUR 721.1 million and
EBITDA of EUR 71.8 million.
(7)^(1) adjusted for the contribution of Surgical Operations, which has
since been sold
══════════════════════════════════════════════════════════════════════════
13.08.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
══════════════════════════════════════════════════════════════════════════
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: judit.helenyi@semperitgroup.com
Internet: www.semperitgroup.com
ISIN: AT0000785555
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1966209
End of News EQS News Service
1966209 13.08.2024 CET/CEST
References
Visible links
1. file:///appl/crsred1/tmp/HTML-FormatExternal-UTbVdf.html#_ftn1
2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=4a71363c998f65ec9ac29b6522aea114&application_id=1966209&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news
3. mailto:bettina.schragl@semperitgroup
4. mailto:judit.helenyi@semperitgroup.com
5. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=a1853d2543b65a06a0c38b7d8493c4a0&application_id=1966209&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news
6. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=1d0be88a25595ba48a3754775b0ada37&application_id=1966209&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news
7. file:///appl/crsred1/tmp/HTML-FormatExternal-UTbVdf.html#_ftnref1
