EANS-Adhoc: Semperit AG Holding Best Half-Year Results Ever Despite Weak
Economy (with photo)
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distribution. The issuer is solely responsible for the content of this
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Mid Year Results/6-month report
13.08.2013
* Revenue up 10.2% to EUR 451.4 million
* Double-digit growth in EBITDA (+21.9%) and EBIT (+16.5%)
* Medical Sector and Industrial Sector increase revenue, earnings and
profitability in spite of challenging economic conditions
* Stable development expected in the second half-year 2013
The publicly listed Semperit Group achieved the best half-year results in its
history based on a significant rise in revenue and earnings. Despite the
negative influences on global markets, Group revenue climbed 10.2% from EUR
409.8 million in the prior-year period to EUR 451.4 million. The Medical Sector
generated considerable revenue and earnings growth due to the ongoing
integration of Latexx Partners, the glove producer acquired in the previous
year, which is proceeding on schedule. The Industrial Sector was negatively
impacted by the weak economic environment. However, this situation was
successfully counteracted by the entry into new markets, strategic growth
projects and operational optimisations, leading to higher revenue and earnings.
Group EBITDA rose 21.9% from EUR 53.9 million in the prior-year period to EUR
65.8 million in the first half of 2013. In spite of higher investment-related
depreciation, EBIT was up 16.5% to EUR 43.7 million from EUR 37.5 million in the
previous year. Accordingly, profitability also increased. The EBITDA margin
improved to 14.6% (H1 2012: 13.2%), and the EBIT margin increased to 9.7% (H1
2012: 9.2%). Earnings after tax (net result) improved by 18.3% to EUR 28.2
million, compared to EUR 23.9 million in the first half of 2012.
"The first half-year went very well for Semperit in spite of the weak economic
situation and ongoing price pressure. The measures designed to enhance
profitability had a positive effect, and the company successfully continued its
growth path", says Chief Executive Officer Thomas Fahnemann in assessing
Semperit's performance for the first half of 2013. "In the Industrial Sector we
expanded the business in all important regions, and significantly improved our
profitability. We successfully countered adverse economic headwinds and achieved
good double-digit earnings margins. We are also optimistic about prospects for
the second half of the year thanks to this strong performance and a satisfactory
order intake."
Semperit also performed well in the second quarter of 2013. Revenue rose to EUR
236.2 million, an increase of 13.6% compared to the second quarter of 2012 and
9.8% from the first quarter of 2013. EBITDA improved by 23.2% from the
prior-year quarter to EUR 36.4 million, and EBIT was up 18.9% to EUR 24.9
million. Both the EBITDA margin (15.4%) and EBIT margin (10.6%) were in the
double-digit range.
Semperit continues to boast an extremely solid financial basis featuring an
equity ratio of 50.4% (December 31, 2012: 49.3%) and cash and cash equivalents
of EUR 111.9 million (December 31, 2012: EUR 133.3 million). "Moreover, we
further diversified Group financing thanks to the successful placement of a
corporate Schuldschein loan, and took advantage of the current attractive
interest rate level also for long maturities", explains Chief Financial Officer
Johannes Schmidt-Schultes.
Medical Sector: Revenue and earnings growth due to acquisition of Latexx
Partners
The Medical Sector (the Sempermed segment) profited from the successful
integration of Latexx Partners in the first half of 2013 as well as an enhanced
global sales performance. Sales increased significantly in all important regions
(Europe, North America and Asia), thus compensating for negative price effects
related to low raw material prices. Capacity utilisation of production sites in
Malaysia and Thailand was raised to more than 80% in the first half-year. The
absence of one-off cost effects incurred in the prior-year period also had a
positive impact on the sector's earnings development.
Revenue of the Medical Sector rose 19.8% in the first half-year to EUR 218.3
million. Sector EBITDA improved by more than 50% to EUR 28.2 million.
Accordingly, the EBITDA margin amounted to 12.9%, compared to 10.1% in the
prior-year period.
Industrial Sector: High profitability despite a weak market environment
The Industrial Sector (Semperflex, Sempertrans and Semperform segments)
succeeded in further increasing revenue, earnings and profitability in spite of
the difficult market environment. Accordingly, double-digit EBIT margins were
generated in all three segments. This performance was made possible by an
efficient capacity and cost management as well as the implementation of
strategic growth projects. As a consequence, the sector attracted new customers
and posted market share increases.
The European operations of the Semperflex segment developed satisfactorily,
whereas business in the USA and Asia recovered towards the end of the reporting
period. Initial successes in the field of industrial hoses were achieved in
developing the markets outside Europe, especially in Asia and the USA. In the
segment Sempertrans revenue once again grew in spite of lower raw material
prices by orienting the business towards higher quality products. Volume
increases in the Semperform segment more than compensated for raw material and
cyclically-related price decreases. Semperform gained additional market share in
Western and Eastern Europe in the field of building profiles, whereas the
handrails business maintained its strong position in China and expanded its
market position in the USA and Europe.
Overall, revenue of the Industrial Sector rose by 2.4% to EUR 233.1 million.
Sector EBITDA was up 8.6% to EUR 45.1 million. The EBITDA margin was at an
outstanding level of 19.4%, up from 18.3% in the prior-year period.
Outlook
The Semperit Group does not anticipate a sustainable recovery of the global
economy. However, an unchanged level of incoming orders is expected for Semperit
in the second half of 2013.
In the Medical Sector, the focus will be on continuing the integration process
and further increasing the capacity utilisation of Latexx Partners. Price
pressure will likely remain unabated due to surplus production capacities on the
global glove market.
Demand in the Industrial Sector is expected to be relatively stable in the
upcoming months. In particular, the Sempertrans segment currently boasts good
capacity utilisation. Positive demand in Europe is predicted in the Semperflex
segment. The energy industry, commodities and infrastructure sectors are
expected to provide additional impetus to growth in the medium-term.
The growth target defined by the Semperit Group remains unchanged. On average,
double-digit revenue growth should be achieved in the period 2010-2015. The
Group maintains its objective of achieving an EBITDA margin between 12% and 15%
in the coming years, whereas the EBIT margin is expected to range between 8% and
11%.
The Half-Year Financial Report 2013 is available for download at
http://www.semperitgroup.com/en/ir.
Pictures with Announcement:
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http://resources.euroadhoc.com/us/E83zWwcF
Further inquiry note:
Martina Büchele
Head of Group Communications
Tel.: +43 676 8715 8621
martina.buechele@semperitgroup.com
Stefan Marin
Investor Relations
Tel.: +43 676 8715 8210
stefan.marin@semperitgroup.comwww.semperitgroup.com
end of announcement euro adhoc
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Pictures with Announcement:
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http://resources.euroadhoc.com/us/E83zWwcF
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, ViDX, Prime Market
stockmarkets: free trade: Berlin, official market: Wien, stock market: Stuttgart,
Frankfurt
language: English