Restructuring, Covid, buoy Semperit results

Vienna – Semperit Group achieved the "best results in its recent corporate history" for the year 2020, helped by a major restructuring measure and increasing demand for rubber gloves in the wake of the Covid pandemic.

Group earnings (EBITDA) tripled year-on-year to €208.6 million during the year, on 10.4% higher sales of €927.6 million, Semperit announced 18 March.

The Austrian group’s medical sector Sempermed, which manufactures rubber gloves, posted a 53% increase in revenue to €450 million, offsetting a 12.6% decline in the industrial segment which registered sales of €478 million.

Sempermed earnings rose sharply during the year, from €5.5 million in 2019 to €150 million in 2020, triggered by "exceptionally high demand in combination with a significant price increase for medical protective gloves." 

In addition, Semperit said the rise in earnings was also a result of its "lengthy and intensive" restructuring efforts of the past years enabled higher capacity utilisation with increased production volumes.

The industrial segment, which includes the Semperflex, Sempertrans, Semperform and Semperseal units, saw earnings decline 12.4% to €76.6 million, as all businesses posted declines in sales and earnings.

Here, Semperit said the Covid pandemic further intensified the economic downturn that had already begun in 2019.

“The pandemic-related special economic situation in the business for medical protective gloves undoubtedly gave us a boost and led to an exceptionally high return on assets,” said Martin Füllenbach, CEO of Semperit AG.

However, he went on to say, the group significantly increased its base profitability as a result of restructuring and transformation measures which were carried out between 2018-2020.

“The start of our cost-cutting programme, which is already having a clearly positive effect, is accompanied by a comprehensive strategy project to shape the best possible starting point for the years ahead,” he concluded.