EANS-News: Semperit AG Holding Profitable growth in difficult market
conditions in 2015
--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------
annual result
- Earnings after tax up 22.6% to EUR 46.4 million
- Dividend proposal: EUR 1.20 dividend per share (after EUR 1.10 excl. special
dividend)
- Mostly stable business development expected in 2016 in a persistently
challenging environment
The publicly listed Semperit Group showed a positive revenue and earnings
development in 2015 in spite of an increasingly difficult market environment.
Revenue rose 6.6% year-on-year to EUR 914.7 million. Earnings after tax
increased by 22.6% to EUR 46.4 million following EUR 37.8 million. Revenue per
share rose by 22.1% to EUR 2.26 (after EUR 1.85).
This growth in revenue and earnings can be attributed to both the Industrial and
the Medical Sectors with strong distribution performances and sales growth. In
addition, capacity expansion, the increased global presence and the successful
integration of the German profile manufacturer Leeser acquired in 2015 showed
positive effects. Volume growth more than compensated for negative price effects
related to decreased raw material prices.
"In 2015 we achieved important milestones in implementing our growth strategy.
In the Industrial Sector we clearly outperformed the market and gained market
share. This is even more encouraging since we were again confronted with a
difficult market environment. In the Medical Sector we increased profitability
by introducing optimisation measures," Semperit CEO Thomas Fahnemann sums up.
"We have strengthened our global presence and have grown profitably by entering
into new markets and customer groups. In addition, we have set the course for
further growth by acquiring the profile manufacturer Leeser and expanding the
capacity in our facilities," Fahnemann adds.
Semperit invested a total of EUR 71.8 million in 2015 (2014: EUR 67.4 million)
to expand and modernise its production plants. Even after the optimisation of
the capital structure and the related payment of the special dividend in May
2015, Semperit boasted a sound capital basis as reflected by its equity ratio of
38.7% at the reporting date of December 31, 2015 (2014: 53.7%). Cash and cash
equivalents amounted to EUR 126.4 million at the end of 2015 compared to EUR
115.6 million at the end of 2014. "In 2015 we continued to optimise our
financial structure by borrowing capital at highly attractive conditions. We
have a solid balance sheet structure and generate stable cash flows from our
operating business. We are optimally financed in the long term and well prepared
for our further growth course. Therefore we are able to finance our ongoing
investment programme out of our own resources and at the same time pay an
attractive dividend to our shareholders," states Semperit CFO Johannes
Schmidt-Schultes. The Management Board will therefore propose a dividend of EUR
1.20 per share for 2015 to the Annual General Meeting, which is an increase of
EUR 0.10 (2014: basic dividend of EUR 1.10 + special dividend of EUR
4.90/share). The pay-out ratio is at 53.2% after 59.6% excluding the special
dividend for 2014.
Industrial Sector: Strong performance despite declining total market
The Industrial Sector (the Semperflex, Sempertrans and Semperform segments)
showed a very positive development contrary to the market trend.
The Semperflex segment generated sales increases and high profitability thanks
to excellent production and sales performances in a declining market. The new
production capacities in Europe's largest hose factory in Odry, Czech Republic,
were well utilised.
In the Sempertrans segment, the global sales initiative led to significant
increases in revenue and earnings in a generally stagnating market. The new
capacities put into operation at the end of third quarter in the conveyor belt
factory in Be?chatów, Poland, were also well utilised.
The Semperform segment showed a double-digit increase in revenue and earnings
despite a difficult market environment in important target markets. This is
primarily due to the successful acquisition and integration of the German
profile manufacturer Leeser as well as the increase in market share in the
global handrail business.
Revenue of the Industrial Sector rose 9.1% to EUR 521.0 million in 2015. EBITDA
climbed 7.8% to EUR 94.9 million. The EBITDA margin amounted to 18.2% compared
to 18.4% in 2014, while the EBIT margin improved to 15.1% after 13.9% in the
previous year.
Medical Sector: Improved profitability in the course of the year
The Medical Sector (Sempermed segment) generated higher sales volumes in 2015 by
increasing its sales activities. Process optimisations and efficiency
enhancements led to a significant improvement of profitability in the course of
2015, which was offset by negative price effects due to lower raw material
prices as well as upfront costs for the new factory in Malaysia.
Revenue of the Medical Sector rose 3.4% to EUR 393.7 million in 2015. EBITDA
declined by 4.4% to EUR 32.1 million. The EBITDA margin amounted to 8.1% (after
8.8%), while the EBIT margin rose to 5.1% compared to 4.6% in 2014.
In summary, the Semperit Group generated EBITDA of EUR 100.6 million in 2015,
down 1.3%. EBIT increased by 11.6% to EUR 71.2 million. The EBITDA margin of
11.0% (2014: 11.9%) and the EBIT margin of 7.8% (2014: 7.4%) remained at a solid
level.
Outlook 2016
In 2016, Semperit expects no significant changes of the market conditions
compared to 2015. The generally low demand in the Industrial Sector in 2015 is
expected to continue in 2016 due to the economic situation. In particular in
Eastern Europe and Russia, no economic upturn is to be expected. Neither does
the industrial capital investment cycle in China show any signs of an upturn.
However, the demand in the economically insensitive Medical Sector is expected
to develop steadily with a market growth of 5% to 6%.
Nevertheless, Semperit has started the year 2016 with a certain amount of
confidence and expects a largely stable development in 2016 compared to 2015. In
the first months of 2016 Semperit has seen a continuing good order situation due
to intensive marketing and sales activities in the Industrial Sector. The
Medical Sector will profit from the step-by-step commissioning of new production
capacities in Kamunting, Malaysia, in 2016 and beyond.
The Semperit Group will continue its growth strategy consistently in 2016 and
aims at achieving average double-digit volume growth (quantities sold) and
attractive earnings margins. The focus will be on the entering into new markets
in the Industrial Sector and the expansion and optimisation of existing
production capacities. In the Medical Sector the focus will be set on the
expansion of the glove production in Malaysia in addition to further production
optimisations, efficiency enhancements and marketing. Altogether, capital
investments (CAPEX) of approximately EUR 70 million are planned for 2016.
The results for the financial year 2015 are available for download at
www.semperitgroup.com/en/ir
The Annual Report 2015 and the Annual Financial Report 2015 will be available at
www.semperitgroup.com/en/ir as of end of March 2016.
Photo download: https://semperitgroup.picturepark.com/Go/wPXX3GzO
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 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. The Semperit Group employs more than
7,000 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
22 manufacturing facilities worldwide and numerous sales offices in Europe,
Asia, Australia and America. In 2015 the group generated sales of EUR 915
million and an EBITDA of EUR 101 million.
Further inquiry note:
Martina Büchele
Group Head of Communications
Tel.: +43 676 8715 8621
martina.buechele@semperitgroup.comwww.semperitgroup.com
Stefan Marin
Head of Investor Relations
Tel.: +43 676 8715 8210
stefan.marin@semperitgroup.com
end of announcement euro adhoc
--------------------------------------------------------------------------------
company: 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