EANS-Adhoc: Semperit AG Holding Good Revenue and Earnings Development in H1
2014 (with photo)
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Mid Year Results/quarterly report
19.08.2014
- Revenue up 2.9% in H1 2014 to EUR 464.3 million
- Increase in EBITDA (+4.6%) and EBIT (+5.7%)
- Organic growth and high profitability
- Continuation of current order situation expected
Vienna, August 19, 2014 - The publicly listed Semperit Group continued its
organic growth in the first half of 2014, showing a good revenue and earnings
development. Revenue in the first six months of 2014 rose 2.9% year-on-year to
EUR 464.3 million from EUR 451.4 million in the prior-year period. Both the
Medical and Industrial Sectors contributed to growth based on strong sales
performances and higher global sales. This more than offset the decrease in
selling price levels caused by the substantial drop in raw material prices.
Double-digit growth was achieved in the Medical Sector, whereas the more
cyclically-dependent Industrial Sector further increased its revenue and
profitability.
In the first half of 2014, the Group's consolidated EBITDA improved by 4.6% to
EUR 68.8 million from EUR 65.8 million in the previous year. EBIT was up 5.7% to
EUR 46.2 million, compared to the prior-year level of EUR 43.7 million. In
addition to the positive operating development, the resolute implementation of
strategic raw material management, stringent cost discipline as well as further
efficiency improvements related to good capacity utilisation contributed to the
rise in earnings. The EBITDA margin was up from 14.6% to 14.8%, and the EBIT
margin climbed to 10.0% from 9.7% in the previous year. Semperit achieved a net
result (earnings after tax) of EUR 27.8 million, which declined slightly from
the comparable figure of EUR 28.2 million in the first half of 2013 due to the
somewhat higher financial expenses.
"The expansion of our sales activities and the further globalisation of our
business paid off again in the first half of 2014. This enabled us to achieve
double-digit sales increases and to grow once more faster than the market. We
not only gained market shares and attracted new customers but also managed to
further increase profitability. This can be attributed to our high capacity
utilisation as well as the successful, active management of our raw material
needs", says Semperit CEO Thomas Fahnemann in commenting on the current business
development.
Semperit also held up well in the second quarter of 2014. Although production
and sales volumes could be significantly increased, the lower raw material
prices compared to the prior-year period resulted in a slight revenue decline to
EUR 231.6 million, down from EUR 236.2 million in the second quarter of 2013.
EBITDA fell by 2.9% to EUR 35.4 million, and EBIT decreased to EUR 23.9 million,
a drop of 4.2%. In spite of these earnings declines, profitability remained at a
very good level as reflected by the EBITDA margin of 15.3% and an EBIT margin of
10.3%.
Semperit boasted a solid capital base at the reporting date of June 30, 2014.
The equity ratio remained at a consistently high level of 48.9% compared to
48.3% as per December 31, 2013. Cash and cash equivalents amounted to EUR 157.3
million, down from EUR 182.6 million at the end of 2013, which can be mainly
attributed to the dividend payment. "Despite distributing a dividend which was
higher than in the previous year and implementing an extensive investment
programme, we still have a positive net liquidity of EUR 17.5 million after
deducting all financing liabilities. The financing of future growth activities
is therefore well secured", explains Semperit CFO Johannes Schmidt-Schultes.
Medical Sector: Higher revenue and earnings
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 could be offset.
Demand for examination gloves was strong, especially in Europe. Sales in the
industrial and consumer goods sectors continued to develop positively. In
contrast, higher energy prices in Malaysia as well as several days of production
standstills at the Kamunting, Malaysia facility related to external
infrastructure work on the water supply for the new Semperit plant at this site
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 1.1% in the first half-year 2014 to EUR 220.6
million. EBITDA was up 3.6% to EUR 29.2 million, comprising an improved EBITDA
margin of 13.3% compared to 12.9% in the prior-year period. The EBIT margin rose
marginally from 7.8% to 7.9%.
Industrial Sector: Excellent development in the first half of 2014
The Industrial Sector (the Semperflex, Sempertrans and Semperform segments)
showed a clearly positive development marked by a further rise in revenue and
earnings. All three segments once again increased sales volumes, which is mainly
due to their strong sales activities. This served as the basis for acquiring new
customers 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 and the USA developed well. In spite of the
challenging situation in Russia and the Ukraine, the performance of the
industrial hose business remained very good, and the initiated globalisation
drive showed further success, especially in Asia. The Sempertrans segment
achieved volume growth. Sempertrans profited from its good market position and
international sales and distribution network, especially in Western Europe.
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 climbed 4.5% in the first half of 2014 to EUR
243.7 million. EBITDA increased even more, rising by 10.1% to EUR 49.7 million,
corresponding to an excellent EBITDA margin of 20.4%, compared to 19.4% in the
prior-year period. The EBIT margin was up to 16.0% from 14.7% in the previous
year, with all three segments generating double-digit EBIT margins.
Outlook 2014 and multi-year targets
For the remainder of 2014 Semperit Group expects the present trend for incoming
orders to continue and a satisfying performance in both revenue and earnings
compared with 2013. Globally, however, more cautious developments of markets and
demands are noted.
The Medical Sector has a growth dynamic that is largely independent from the
general trend in the economy. Capacity in the Industrial Sector is well utilised
for the next several months. However, geopolitical crises and the economic
sanctions against Russia are leading to uncertainty in some sales markets. This
also means, among other things, that Semperit's competitors are switching to
other markets, increasing competition in these markets as a result. A further
economic slowdown in Russia and Eastern Europe would probably impact local
demand for products of some business units negatively.
The Sempermed segment continues to focus on improving efficiency as well as
targeting new customer segments. The Semperit Group anticipates that global
demand for examination and protective gloves will continue to grow. In order to
take advantage of this market growth, Sempermed is expanding production capacity
at its plant in Kamunting, Malaysia. A total of around EUR 50 million will be
invested in the construction of a new glove factory during the period 2014 to
2016.
With regard to potential volume increases in the Industrial Sector it should be
noted that capacities in all three segments are well utilised. As a result, the
group has decided to expand its manufacturing capacities for hydraulic and
industrial hoses in Odry, Czech Republic, for conveyor belts at the plant in
Belchatów, Poland, and for handrails in Shanghai, China. However, these
additional capacities will be available step by step in the course of 2015.
For the year 2014 the group expects to invest around EUR 50-60 million (CAPEX),
compared to EUR 49.7 million in 2013. Of this amount, around EUR 25 million is
intended for the maintenance of existing facilities.
Semperit reaffirms its previous growth targets, namely to achieve double-digit
revenue growth on average in the years from 2010 to 2015 inclusive. It still
aims to achieve an EBITDA margin of between 12% and 15% and an EBIT margin of
between 8% and 11%.
Pictures with Announcement:
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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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Pictures with Announcement:
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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