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]monika.riedel@semperitgroup.com

Judit Helenyi
Director Investor Relations
+43 676 8715 8310
[2]judit.helenyi@semperitgroup.com
 

[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: judit.helenyi@semperitgroup.com
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 

References

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