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21.11.2019 – 07:34

Semperit AG Holding

EANS-News: Semperit AG Holding
Transformation measures lead to significant improvement of operating results in Q1-Q3 2019*

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Quarterly Report

Vienna -

* Decrease in total revenue by 2.7% to EUR 652.2 million
* Slight decrease in revenue by 1.5% in the Industrial Sector and more
  significant decline by 4.9% in the Medical Sector
* EBITDA increased by 23.1% (after one-off effects in Q2'2018) to EUR 56.4
  million, EBITDA margin from 6.8% (adjusted) to 8.6%
* Publication of the interim Group report postponed due to potential impairment
  loss at Sempermed
* Varying degrees of decline in order books per segment indicates recession


Vienna/Austria, 21 November 2019 - The publicly listed Semperit Group
significantly improved the operating results with increasing profitability on
EBITDA level in the first three quarters of 2019, while revenue declined
slightly. "In the course of this year, we have taken a major step forward; our
systematic restructuring and transformation programme is taking effect. The
Medical Sector has also made a positive contribution to EBITDA for the second
consecutive quarter, based on an increase in operating performance," commented
Martin Füllenbach, Chairman of the Management Board of Semperit AG Holding, on
the condensed report. "Despite this upward trend, the situation in the Medical
Sector continues to intensify in view of the highly competitive market
environment; our relative competitive position has recently deteriorated
significantly. Against this background, we are examining strategic options for
the Medical Sector."

The significant increase in profitability in the first three quarters was
achieved in an environment of increasingly subdued global economic developments
and trade conflicts. This led to uncertainty in many industrial circles with
regard to future investment decisions and it increases fears of recession.
Although the raw material markets continued to ease compared to the previous
year, Semperit continues to observe intense competition for some materials. At
the same time, Semperit is now in a position to react appropriately to economic
fluctuations, also at short notice as a result of the transformation programme
and proactive measures.


Increase in profitability in all segments

Business development in the Industrial Sector again varied. While Semperflex and
Semperform recorded only slight declines in revenue, Sempertrans saw a higher
decrease in revenue, mainly due to a paradigm change from a volume-based
strategy to a differentiated customer/product approach. Profitability was
consistently increased in the segments of the Industrial Sector due to positive
effects of the initiatives from the restructuring and transformation programme.

The decrease in revenue in the Medical Sector, on the other hand, was mainly due
to a decline in volumes sold. Business development was characterised by the
strategic decision for increased in-house production instead of traded goods and
a continuing trend towards nitrile gloves. The order situation is under
increasing pressure, as some major customers are optimising their inventories or
expanding their supplier base due to the difficult market and price situation.

In the first three quarters of 2019, total revenue recorded a year-on-year
decline of 2.7% to EUR 652.2 million. Revenue in the Industrial Sector fell by
1.5% to EUR 426.2 million and in the Medical Sector by 4.9% to EUR 226.0
million.


EBITDA up to Q3 2019 surpassed EBITDA for the full year 2018

EBITDA (earnings before interest, tax, depreciation and amortisation) rose from
EUR 41.9 million in the first three quarters of 2018 (or EUR 45.8 million,
adjusted for the negative one-off effects of EUR 3.9 million from the shutdown
of the Sempertrans site in China for the first three quarters of 2018) to EUR
56.4 million in the first three quarters of 2019. As a result, the full-year
figure for 2018 was already exceeded at the end of the third quarter. The EBITDA
margin increased from adjusted 6.8% to 8.6% in the first three quarters of 2019
and thus reflects the profitability improved by the restructuring and
transformation process.

At EUR 25.1 million, the cash-effective investments in tangible and intangible
assets in the first three quarters of 2019 were below the previous year's level
of EUR 57.7 million.


Industrial Sector: transformation process shows clear effects

The declining demand due to the economic situation had an impact on the
Industrial Sector (Semperflex, Sempertrans and Semperform segments), among
others. Overall, revenue in the Sector fell by 1.5% from EUR 432.7 million to
EUR 426.2 million in the first three quarters of 2019. EBITDA increased by
+34.0% to EUR 74.7 million and therefore exceeded the total annual results of
2018 after only nine months. The EBITDA margin improved from 12.9% to 17.5%.


Medical Sector: further operating improvements

In the Sempermed segment, revenue in the first three quarters of 2019 declined
by 4.9% year-on-year to EUR 226.0 million. Due to the successful implementation
of operational restructuring measures, profitability was increased again,
whereby EBITDA turned positive again for the first time after a negative first
half-year: EBITDA amounted to EUR 1.5 million in the first three quarters of
2019 after EUR -0.8 million in the same period of the previous year.


Outlook 2019

The Management Board of Semperit will continue systematically the ongoing
restructuring and transformation process. At the same time, the effects of the
global economic slowdown are clearly noticeable. This is reflected to varying
degrees in the declining order books of the segments and is expected to have a
negative impact on earnings particularly in the first half of 2020.

The competitive environment of the Medical Sector has recently intensified
significantly, which - as already announced on 13 November 2019 - might result
in a significant impairment loss in the Medical Sector. Not least against this
background, the Management Board is examining strategic options for the medical
business.


* The figures for Q1-3 2019 are preliminary. On 13 November 2019, Semperit
announced that it had gained new findings on the competitive environment of the
medical business, which might result in a significant impairment loss in the
Medical Sector. Therefore, today's reporting on the first three quarters has
been shortened. The interim Group report as of 30 September 2019 will be
presented when a potential impairment loss has been recognised; the publication
date will be announced separately. Due to adjusting events after the closing
date, the figures presented in today's shortened report might still change until
the approval of the publication.




Further inquiry note:
Monika Riedel 
Director Group Communications & Sustainability 
+43 676 8715 8620 
monika.riedel@semperitgroup.com 

Judit Helenyi
Head of Investor Relations
+43 676 8715 8310
judit.helenyi@semperitgroup.com

www.semperitgroup.com


end of announcement                         euro adhoc
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issuer:       Semperit AG Holding
              Modecenterstrasse 22
              A-1030 Wien
phone:        +43 1 79 777-310
FAX:          +43 1 79 777-602
mail:      judit.helenyi@semperitgroup.com
WWW:       www.semperitgroup.com
ISIN:         AT0000785555
indexes:      ATX PRIME, WBI, ATX GP
stockmarkets: Wien
language:     English
 

Original content of: Semperit AG Holding, transmitted by news aktuell