Medical sector raises Semperit revenue

ERJ staff report (TP)

Vienna – Semperit Group reported a rise in revenue of 2.9% in the first half of 2014 due to double-digit growth in the medical sector.

Revenue increased to €464.3 million from €451.4 million in the prior year period.

CEO Thomas Fahnemann said: “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.”

Semperit, which makes rubber and plastic products for the medical and industrial markets, said both sectors contributed to the increase – with double-digit growth in the medical sector.

This offset the decrease in selling price levels caused by the “substantial drop” in raw material prices.

In the first half of 2014, the group’s consolidated EBITDA improved by 4.6% to €68.8 million from €65.8 million in the previous year. EBIT was up 5.7% to €46.2 million, compared to the prior year level of €43.7 million.

Semperit achieved a net result (earnings after tax) of €27.8 million, which declined slightly from the comparable figure of €28.2 million in the first half of 2013 due to the “somewhat higher financial expenses”.

The company’s developments come on the back of its “best Q1 2014 results ever” and a fiscal 2013 Semperit described as the “best result in the company's history”.

For the remainder of 2014 it expects the present trend for incoming orders to continue but remains “cautious” about global markets and demands.

Semperit said: “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.

“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 €50 million will be invested in the construction of a new glove factory during the period 2014 to 2016.

“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.”

Semperit expects to invest around €50-60 million (CAPEX) this year, compared to €49.7 million in 2013. Of this amount, around €25 million is intended for the maintenance of existing facilities.