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Financial Figures/Balance Sheet/quarterly report
- Revenue up 2.0% to EUR 698.3 million
- Largely unchanged earnings development with respect to EBITDA and EBIT
- Good order situation in spite of the weak economy
- Stable financial year 2014 expected
Vienna, November 18, 2014 - The publicly listed Semperit Group showed a
satisfactory revenue and earnings development in the first three quarters of
2014. Revenue rose 2.0% year-on-year to EUR 698.3 million from EUR 684.4 million
in the prior-year period. Both the Medical and Industrial Sectors contributed to
growth based on strong sales performances and higher sales volumes. This more
than compensated for the decrease in selling price levels caused by the 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 against the backdrop of a restrained market development.
For the most part, Semperit generated stable earnings in a challenging market
environment. In particular, the resolute implementation of strategic raw
material management, stringent cost discipline and efficiency improvements
resulting from good capacity utilisation had a positive effect. In contrast, the
growth-related increase in personnel and slightly increased other operating
expenses negatively impacted earnings. The Group's consolidated EBITDA of EUR
101.3 million was largely stable in comparison to EUR 102.0 million achieved in
the previous year. EBIT declined to EUR 66.7 million, a drop of 3.2% from the
record nine-month figure of EUR 69.0 million achieved in Q1-3 2013. The EBITDA
margin of 14.5% (Q1-3 2013: 14.9%) and the EBIT margin of 9.6% (Q1-3 2013:
10.1%) remained at a solid level. Semperit achieved a net result (earnings after
tax) of EUR 39.6 million, which declined from the comparable figure of EUR 44.5
million in the first three quarters of 2013 due to the lower EBIT and higher
"We succeeded in growing organically in the first nine months although we faced
stiff headwinds in cyclically-dependent areas. This growth can be attributed to
a very strong sales performance in all segments and regions. The order situation
in the months ahead continues to be good because we are continually attracting
new customers and further expanding business with our existing ones. All in all
we expect a satisfactory 2014 financial year, although we have already perceived
a slowdown in the global economy", says Semperit CEO Thomas Fahnemann in
commenting on the current business development.
Semperit generated substantial sales increases in the third quarter of 2014 in
contrast to strong negative price effects related to the considerably lower raw
material prices. Third-quarter revenue was up slightly to EUR 234.0 million from
EUR 233.0 million in the previous year. EBITDA fell by 10.3% to EUR 32.5
million, and EBIT was down 18.8% to EUR 20.5 million. In spite of these
declines, profitability remained still satisfactory, as reflected by the EBITDA
margin of 13.9% and the EBIT margin of 8.8%.
Semperit boasted a solid capital base at the reporting date of September 30,
2014. The equity ratio remained at a consistently high level of 49.6% compared
to 48.3% as per December 31, 2013. Cash and cash equivalents amounted to EUR
163.2 million, down from EUR 182.6 million at the end of 2013. "We still have a
high level of liquidity despite distributing a higher dividend and implementing
an extensive investment program. We generated a cash flow from operating
activities (gross cash flow) of EUR 83,4 million in the first nine months of the
year, which underlines the continued cash-generating strength of our business
operations", explains Semperit CFO Johannes Schmidt-Schultes.
Medical Sector: Higher sales and revenue
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. Sales in the industrial and consumer
goods sectors continued to develop positively. In contrast, higher energy prices
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 0.9% in the first three quarters of 2014 to
EUR 334.0 million. EBITDA was stable at EUR 43.9 million compared to EUR 44.1
million in the previous year. The EBITDA margin of 13.1% was also at the
prior-year level (Q1-3 2013: 13.3%).
Industrial Sector: Strong development in spite of economic slowdown
The Industrial Sector (the Semperflex, Sempertrans and Semperform segments)
showed a positive development. All three segments once again increased sales
volumes due to their strong sales activities.
In the Semperflex segment, sales successes enabled a very good capacity
utilisation of production plants and a substantial rise in revenue and earnings.
The hydraulic hose business increased again delivery shares in Europe and the
USA, but the situation in Asia remains difficult. The Sempertrans segment
achieved volume growth as well. However, raw material price effects led to a
decline in revenue and earnings. Almost all business units in the Semperform
segment generated volume increases.
Revenue of the Industrial Sector climbed 3.1% in the first three quarters of
2014 to EUR 364.3 million. EBITDA was up 1.9% to EUR 72.0 million, corresponding
to a largely unchanged excellent EBITDA margin of 19.8% compared to 20.0% in the
prior-year period. All three segments generated double-digit EBIT margins.
Outlook 2014 and multi-year targets
The Semperit Group expects a largely stable order situation for the rest of 2014
and a satisfactory performance in both revenue and earnings compared to 2013.
The slowdown of the global economy along with geopolitical crises has led to a
restrained market and demand development in cyclically-dependent business areas.
Whereas the North American market continues to develop positively, a
considerable weakening of demand is perceptible in Europe. There is a lack of
growth impetus throughout Asia.
The Medical Sector has a growth dynamic that is largely independent from the
general trend in the economy. 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
steadily grow. In order to take advantage of this market growth, Sempermed is
expanding its production capacity at its plant in Kamunting, Malaysia. A total
of about EUR 50 million will be invested in the construction of a new glove
facility during the period 2014 to 2016.
The order pipeline in the Industrial Sector is well filled for the coming months
despite the current weak economic situation. However, a further economic
slowdown would likely depress demand of some business units. Semperit is
counteracting the weaker market development by intensifying its sales and
marketing activities in order to gain market shares.
In order to continue its long-term growth, the Semperit Group is implementing an
extensive investment programme in its Industrial Sector. As a result, the group
is currently expanding its manufacturing capacities for hydraulic and industrial
hoses in Odry, Czech Republic, for conveyor belts at its plant in Belchatów,
Poland, for handrails in Shanghai, China and for profiles in Wimpassing,
Austria. These additional capacities will be available step by step in the
course of 2015 and 2016.
For the year 2014 the group expects to invest more than EUR 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%.
The report on the first three quarters of 2014 is available for download at:
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 11,600
people worldwide, including close to 9,000 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 2013 the group generated sales of EUR 906 million and an EBITDA
of EUR 133 million.
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Head of Group Communications
Tel.: +43 676 8715 8621
Tel.: +43 676 8715 8210
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issuer: Semperit AG Holding
phone: +43 1 79 777-210
FAX: +43 1 79 777-602
sector: Synthetics & Plastics
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