EANS-Adhoc: Semperit AG Holding Satisfactory Business Development in 2014
despite Weak Economic Environment
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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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Financial Figures/Balance Sheet
26.03.2015
- Revenue up 2.6% to EUR 930.4 million
- Improved EBITDA and EBIT
- Dividend proposal: basic dividend of EUR 1.10 per share plus a one-time
special dividend of EUR 4.90 per share
- Satisfactory business development expected in 2015 against the backdrop of an
ongoing challenging business environment
The publicly listed Semperit Group showed a satisfactory revenue and earnings
development in 2014 in spite of a weak economic climate. Revenue rose 2.6%
year-on-year to EUR 930.4 million. This growth can be attributed to strong sales
performances and high capacity utilisation in both the Medical and Industrial
Sectors. This more than compensated for negative price effects related to the
ongoing low raw material prices. Double-digit sales growth was generated once
again in the Medical Sector, whereas the revenue increase in the more
cyclically-dependent Industrial Sector was driven by the strong development of
the Semperflex segment.
With respect to earnings indicators, Semperit showed an improvement in EBITDA
and EBIT. The Group's consolidated EBITDA rose 2.7% from the prior-year level to
EUR 136.1 million. EBIT was up slightly by 0.8% to EUR 88.5 million. This growth
was due to higher revenue as well as a positive effect relating to the change in
consolidation of the Thai joint venture company Siam Sempermed Corp. Ltd. (SSC)
from full to at-equity consolidation. The EBITDA margin of 14.6% (2013: 14.6%)
and the EBIT margin of 9.5% (2013: 9.7%) remained at a solidly high level.
Semperit achieved a net result (earnings after tax) of EUR 49.7 million in 2014,
down from EUR 54.9 million in 2013, which is attributable to a higher income tax
expense from prior periods as well as tax postings related to the previously
mentioned change in consolidation.
"We started the year 2011 with the goal of accelerating Semperit's growth. Today
we can report that we raised sales volumes by up to 80% in the period 2010 to
2014, and substantially increased revenue in spite of the drastic drop in raw
material prices. We strengthened our sales performance, successfully implemented
acquisitions and launched the biggest investment programme in the company's
history. We are well on track even if important stages in the growth of the
company are still ahead of us. As a result, we are very well positioned to grow
further in the years ahead even when faced with a difficult economic
environment. We proved this to be true in 2014", says Semperit CEO Thomas
Fahnemann, commenting on the company's business results.
Semperit invested a total of EUR 74.4 million in 2014 (2013: EUR 49.7 million)
to expand and modernise its production plants. This represents the highest
investment volume to date in the company's history. Semperit continues to boast
a sound capital basis as reflected by its equity ratio of 54.0% at the reporting
date of December 31, 2014 (December 31, 2013: 48.3%). Cash and cash equivalents
amounted to EUR 115.6 million compared to EUR 182.6 million at the end of 2013.
"We still have a high level of liquidity despite our dynamic growth. Over the
past four years we have been able to increase revenue reserves by EUR 109.9
million to a total of EUR 405.5 million. Our shareholders should profit from
this development in the form of a special dividend, given the fact that we do
not plan any major acquisitions for the time being and are going to optimise our
capital structure", states Semperit CFO Johannes Schmidt-Schultes. As already
announced, the Management Board will propose a basic dividend of EUR 1.10 per
share to the Annual General Meeting for 2014 along with a one-time special
dividend of EUR 4.90 per share compared to a basic dividend of EUR 0.90 per
share and an anniversary bonus of EUR 0.30 per share for the 2013 financial
year.
Medical Sector: Organic growth in a challenging year
The Medical Sector (Sempermed segment) generated substantially higher sales
volumes in 2014. Therefore, the ongoing negative price effects caused by the
lower raw material prices could be offset. Demand for examination gloves was
strong, especially in Europe. Sempermed also reported further growth in the
industrial and consumer goods sectors. In contrast, the higher energy prices and
upfront investment costs related to the capacity expansion drive initiated in
Malaysia had an adverse effect on the Medical Sector's performance. Capacity
utilisation remained high at all Sempermed production plants.
Revenue of the Medical Sector rose 4.1% in 2014 to EUR 452.9 million. EBITDA
climbed 14.1% to EUR 67.0 million. The main reason was the positive one-off
effect within the context of the change in consolidation for SSC. The EBITDA
margin improved to 14.8% from 13.5% in the previous year.
Industrial Sector: Solid development despite strong headwinds
The Industrial Sector (the Semperflex, Sempertrans and Semperform segments)
showed a solid development despite an economic slowdown in the second half of
2014.
The Semperflex segment generated a rise in revenue and earnings thanks to
significant production and sales successes. The hydraulic hose business of
Semperflex showed delivery share gains in Europe and the USA. The declining raw
material prices more than offset the volume increases generated in the
Sempertrans segment. However, very high capacity utilisation and production
efficiency, particularly in Europe, strengthened profitability in this difficult
business environment. The cyclically-related moderate volume growth in the
Semperform segment was in contrast to the raw material-driven and
currency-related decreases in selling prices. In particular, the business
development of the Semperform segment was negatively impacted by the Russia
crisis and the accompanying weak demand in Eastern Europe.
Driven by the strong development of the Semperflex segment, revenue of the
Industrial Sector rose 1.3% in 2014 to EUR 477.5 million. EBITDA at EUR 88.1
million was close to the outstanding prior-year figure of EUR 90.1 million. The
EBITDA margin remained at a high level of 18.5% compared to 19.1% in 2013.
Outlook 2015 and multi-year targets
The Semperit Group started 2015 with well-filled order books. Initial
stabilisation tendencies in Western Europe and strong demand in North America
have a positive impact. However, Semperit is not immune to the effects of the
economic slowdown in Central and Eastern Europe. Demand in Asia is expected to
be flat for the most part in 2015.
The Semperit Group anticipates a satisfactory business development for the
entire year 2015 against the backdrop of an ongoing challenging business
development. The incipient recovery of the global economy should be perceptible
starting in the second half of the year. Revenue and earnings should remain at
an attractively high level but will not match the performance of the past two
years as a result of the current economic and raw material price situation as
well as the effect of the change in consolidation in 2014.
Due to the conversion of the previously full consolidation of the 50% joint
venture investment at Siam Sempermed Corp. Ltd., Thailand to the "at equity"
method as at December 31, 2014, the revenue recognised will likely be 10% lower
compared to full consolidation and EBIT 20% lower than reported in the past. No
significant effects are expected with respect to the earnings after tax and
minorities of the Semperit Group as well as on the earnings per Semperit share.
The changed reporting of consolidation will first be published in the interim
report for the first quarter of 2015.
Semperit is continuing the expansion of its production capacities in both the
Medical Sector and Industrial Sector. CAPEX of approximately EUR 75 million is
planned for 2015 (2014: EUR 74 million), of which about EUR 50 million relates
to growth investments. The additional capacities will gradually become available
in the course of the years 2015 and 2016 with correspondingly positive effects
on the Group's revenue development.
In the future Semperit is striving to achieve double-digit growth of sales
volumes on average as well as attractive earnings margins. For the time being,
it confirms its targeted EBITDA margin of between 12% and 15% and an EBIT margin
of between 8% and 11%.
The results for FY 2014 are available for download at
http://www.semperitgroup.com/investor-relations/Results_FY_2014.pdf
The Annual Report 2014 will be available for download at
www.semperitgroup.com/ir as of April 2, 2015.
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 6,900
people worldwide, including close to 4,100 in Asia and more than 800 in Austria
(Vienna and production site in Wimpassing, Lower Austria). The Group has 20
manufacturing facilities worldwide and numerous sales offices in Europe, Asia,
and America. In 2014 the group generated sales of EUR 930 million and an EBITDA
of EUR 136 million.
Further inquiry note:
Martina Büchele
Head of Group Communications
Tel.: +43 676 8715 8621
martina.buechele@semperitgroup.comwww.semperitgroup.com
Stefan Marin
Investor Relations
Tel.: +43 676 8715 8210
stefan.marin@semperitgroup.com
end of announcement euro adhoc
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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