Vienna – Semperit Group has reported a strong growth in earnings in the first quarter of 2016 both for its medical and industrial sectors, amid often difficult conditions.
The Austrian company posted a revenue increase of just under 1 percent to €219.5 million from €217.5 million the previous year.
Group’s earnings (EBITDA), however, rose by 22.3 percent to €26.7 million compared to €21.8 million in Q1 2015.
The company attributed the growth in earnings to both its industrial and the medical businesses.
In the industrial sector, the Vienna-based company managed to make gains despite the weak global economy.
Including its Semperflex hoses, Sempertrans conveyor belts and Semperform construction materials, the industrial unit reported growth of 6 percent in revenue to €133.6 million with earnings up by 13.7 percent to €25.1 million.
The Semperflex segment, said the company, generated “continuing high profitability” depite a declining market.
In the conveyor belts segment, the company said a global sales initiative had led to “significant increases in revenue and earnings in a generally stagnating market.”
Semperform profited from “the successful integration” of the German profile manufacturer Leeser as well as an increase in market share in the handrail business.
In the medical business, revenue dropped by 6.0 percent to €85.9 million in the first quarter, driven by “heavy price pressure and the focus on high-margin customer relationship.”
Earnings, however, rose by 27.1 percent to €6.1 million for the said period.
The company attributed the growth in its Sempermed gloves-making business to a process-optimisation initiative which started in 2015.
The group announced that it would continue its growth strategy in all markets throughout 2016, with €70 million earmarked for investment during the year.
The focus, said the company, will be on entering into new markets in the industrial sector and the expansion and optimisation of existing production capacities.
In the medical sector the focus will be set on the expansion of glove production in Malaysia.