EANS-Adhoc: Semperit AG Holding Increases Revenue and Earnings in H1 2015
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
Mid Year Results/6-month report
26.08.2015
- Good operational performance leads to organic growth
- Better performance of the Industrial Sector, weaker results of the Medical
Sector due to one-time effects
- Satisfactory development expected for the entire year 2015
The publicly listed Semperit Group generated a satisfactory revenue and earnings
development in the first half of 2015 despite a challenging market environment.
The group's consolidated revenue rose by 1.6% to EUR 450.8 million from EUR
443.6 million in the previous year. However, organic revenue growth reached 5.0%
on a like-for-like basis excluding one-time consolidation and acquisition
effects.
Thanks to a strong sales performance and high capacity utilisation in the
Industrial Sector, Semperit managed to compensate the weaker results in the
Medical Sector attributable to one-time effects. The net result (earnings after
tax) increased by 0.3% to EUR 25.3 million in the first half of 2015 (EUR 25.2
million in the first half of 2014). Earnings per share remained unchanged at EUR
1.23 for the first half of 2015.
The group's EBITDA decreased by 16.7% to EUR 53.2 million from EUR 63.8 million
in the previous year as a consequence of one-time effects in the Medical Sector.
EBIT declined by 11.4% to EUR 39.1 million (H1 2014: EUR 44.1 million).
Accordingly, the EBITDA margin dropped to 11.8% (H1 2014: 14.4%) and the EBIT
margin was down to 8.7% (H1 2014: 9.9%). These declines can be attributed to the
change in the consolidation method of Semperit's joint venture in Thailand,
up-front costs for the new glove production plant in Malaysia and lower raw
material prices. On the other hand, the Industrial Sector further increased
earnings despite negative market trends.
"We achieved satisfactory results in the first half of 2015 despite strong
economic headwinds. Our Industrial Sector performed considerably better than the
overall market due to our strong sales performance and expansion of production
capacities. Profitability in the Medical Sector was negatively impacted by
up-front costs for the new glove plant in Malaysia. It will start operating in
2016 and will generate growth in revenue and earnings", Semperit CEO Thomas
Fahnemann comments on the company's results. "In the second half of 2015 -
within a continuously difficult market environment - we expect to benefit from
additional production capacities, which will gradually be available from
September onwards. Furthermore, we will expand into new markets and service new
customer groups in the cause of the integration of the German profile producer
Leeser in the Semperform segment", Thomas Fahnemann adds.
Semperit also performed well in the second quarter of 2015. Revenue increased by
10.7% to EUR 233.4 million. EBITDA decreased by 8.8% to EUR 28.4 million due to
start-up costs for new production capacities, EBIT fell by 7.1% to EUR 20.9
million. Despite these decreases, profitability remained at a very good level as
shown by an EBITDA margin of 12.2% and an EBIT margin of 9.0%.
Semperit has a solid capital structure with an equity ratio of 39.1% as of June
30, 2015 (53.7% as of December 31, 2014). Cash and cash equivalents amounted to
EUR 97.9 million compared to EUR 115.6 million at the end of 2014. This
development mainly results from the dividend payment. Semperit CFO Johannes
Schmidt-Schultes: "With the payment of a highly attractive dividend the
restructuring of the capital structure has been completed. We complemented
equity with debt at favourable conditions and still managed to maintain net debt
at a reasonable level. We are able to finance our growth activities efficiently
and create additional value on behalf of our shareholders".
Medical Sector: One-time effects burden earnings
The Medical Sector (Sempermed segment) was negatively impacted by low raw
material prices, modernisation expenses and up-front costs for the new
production plant in Malaysia as well as price pressure on the markets in the
first half of 2015.
Revenue of the Medical Sector amounted to EUR 191.5 million in the first half of
2015
(-4.2%) due to the change in the method of consolidation. EBITDA of the Medical
Sector decreased to EUR 13.7 million. This resulted in an EBITDA margin of 7.1%
and an EBIT margin of 4.0%. Revenue in the first half of 2015 increased by 6.3%
on a like-for-like basis excluding one-time effects related to the change in the
method of consolidation.
Industrial Sector: Growth despite negative market trends
The Industrial Sector (Semperflex, Sempertrans and Semperform segments)
developed very well despite negative market trends.
The Semperflex segment's outstanding production and sales performance has been
the basis for further revenue growth and high profitability in an overall
declining market. The recently added production capacities at the plant in Odry,
Czech Republic, have been well utilised since the very beginning. Therefore the
next expansion phase is currently under way. The entry of Sempertrans to new
markets and the penetration of new customer segments led to substantial revenue
and earnings increases. Additional capacities in the conveyor belt plant in
Bełchatów, Poland will be put into operation at the end of the third quarter of
2015. The Semperform segment achieved double-digit revenue and earnings growth
despite weaker demand in key markets. This development is mainly resulting from
the successful acquisition of the profile producer Leeser and the beginning
recovery of the handrail business in China.
Revenue of the Industrial Sector rose by 6.4% to EUR 259.3 million. The sector's
EBITDA increased by 4.1% from a very high prior year level to EUR 51.7 million.
The EBITDA margin was 19.9%, whereas the EBIT margin rose to 17.0%.
Outlook 2015 and multi-year targets
Semperit continues to have strong order books as a result of intensified sales
activities in all segments. Despite a slightly weaker than expected economic
recovery in Western Europe, order intake develops well. The market continues to
develop stable in North America. There is a slight recovery in Central and
Eastern Europe recognisable - with the exception of Russia and the Ukraine. The
development in Asia is expected to remain difficult in 2015.
The Semperit Group anticipates a satisfactory business performance for the year
2015 despite an ongoing challenging business environment. Revenue and earnings
should again be at an attractive level, although from today's perspective the
company is unlikely to reach the earnings performance of the previous year. This
is due to the more difficult market environment, effects related to the change
in the method of consolidation of the joint venture in Thailand and up-front
costs for additional production capacities as well as efficiency enhancement
projects, which will positively impact Semperit's earnings situation in
subsequent years.
Semperit is still committed to qualitative and profitable growth in the Medical
Sector. Therefore the focus in 2015 is on efficiency improvements at the
individual production sites, the expansion of high-margin customer relationships
and the continuation of the expansion of capacity in Kamunting, Malaysia. The
successful sales drive in the Industrial Sector will be continued.
Semperit is continuing the expansion of production capacities in both the
Medical Sector and Industrial Sector. Capital expenditure (CAPEX) of
approximately EUR 75 million is planned for 2015 (2014: EUR 74 million), of
which EUR 50 million relate to growth investments. The additional capacities
will gradually be available in the course of the years 2015 and 2016 with
correspondingly positive effects on the group's revenue.
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,
Semperit confirms the targeted EBITDA margin between 12% and 15% and an EBIT
margin between 8% and 11%.
Note: Figures for the first half of 2014 were adjusted (comparison with prior
year periods is only of limited informative value due to the change in the
method of consolidation of the joint venture company in Thailand as of March 31,
2014).
The report is available for download at: http://www.semperitgroup.com/en/ir -->
Reports and Presentations.
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. The Semperit Group
employs about 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, and America. In 2014 the group generated sales of
EUR 858 million and an EBITDA of EUR 102 million.
Further inquiry note:
Martina Büchele
Group Head of 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
--------------------------------------------------------------------------------
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