Semperit expects ‘slow recovery’ despite record earnings

Vienna – Semperit AG Holding has posted record earnings for the first nine months of 2020, but has cautioned that a market recovery from Covid-19 will be slow.

“Although a brief recovery of economic activities and supply chains began between June and September… there were repeated setbacks and, in some cases, new shutdowns,” said the Austrian rubber goods manufacturer in its nine-month report 19 Nov.

With the crisis ‘intensifying’ again in the fourth quarter, Semperit said the recovery of the markets “will take even longer with increasing raw material prices.” 

According to the Vienna-based group, the prices of basic raw materials relevant to Semperit have risen sharply in recent months. 

“These market-relevant external factors will continue to impact the business of the Semperit Group,” it said.

On a more positive note, the Austrian group said it expected the positive effects of the pandemic on its medical gloves segment to continue “well into 2021”, despite the potential release of an effective vaccine in the foreseeable future.

For the nine months to end of September, the group almost doubled earnings (EBITDA) to €118.5 million, with earnings margin up from 9.3% to 18.0%.

Consolidated revenue increases by 0.8% to €657.2 million, during the period.

Commenting on the results, Martin Füllenbach, CEO of Semperit AG Holding said the positive developments were primarily due to “the exceptional boom” in medical products as well as the restructuring measures over the past few years. 

“All in all, from today’s point of view ... the assumption [is] that we will be able to maintain the 2020 result in the coming year at the same range or even surpass it again,” he added.

During the first nine months of the year, Semperit’s medical gloves segment, Sempermed saw a strong 27% increase in revenue to €288 million, offsetting a double-digit decline in the industrial sector.

Having undergone a major restructuring since the beginning of 2020, and buoyed by a surge in demand following the Covid pandemic, Sempermed reported a staggering rise in earnings in the first nine months of the year.

Segment earnings for the first three quarters rose to €67.3 million, from €5.6 million reported in 2019. 

The industrial sector – comprised of four segments Semperflex, Sempertrans, Semperseal and Semperform – was impacted by both continued economic downturn which started in 2019 and the Covid pandemic. 

Revenue in the sector fell 13.4% to €369 million, while earnings declined 12.6% to €65.3 million.