Semperit delivers four-fold increase in first-half earnings

Vienna – Semperit Group has posted a strong set of first-half results, driven by ‘exceptionally high’ sales in the medical segment and a recovery in demand for industrial products.

Group earnings (EBITDA) more than quadrupled from €57.6 million in the first half 2020 to €247.5 million this year, said Semperit in a 19 Aug statement.

Earnings margins consequently improved to 37.5% for the first six months, compared to 13.7% for the same period last year.

Group revenue increased by 58% to the record level of €660.8 million, reflecting 131% growth in the Sempermed medical gloves business and 7.6% growth in industrial products sales.

For the first half of the year, Sempermed reported sales of €392 million, up from €170 million last year. Business unit’s earnings rose more than 90% to €210 million.

The industrial sector, which includes Semperflex, Sempertrans, Semperform and Semperseal, posted an overall 7.7% decline in earnings to €41 million, while sales reached €268 million.

Semperflex hose production operations and Semperseal sealing products posted a 16% and 25% rises in revenue to €114 million and €59 million respectively.

Semperflex earnings were up 12% at €26 million, while Semperseal posted an earnings growth of 2.8% to €6.6 million.

However, conveyor belts unit Sempertrans and profile manufacturer Semperform both posted declines in sales and earnings during the period.

“Despite the increasingly inflationary raw material price trend and bottlenecks in the global supply chains, we achieved the best half-year result since the turn of the millennium,” said Martin Füllenbach, CEO of Semperit AG Holding. 

The improvement, he said was not only due to the growth in the medical sector, but also to “the good performance in our focus sector, industry.” 

With a “high level of financial strength”, Füllenbach said Semperit was in “a good position to take growth steps in the course of our M&A strategy.” 

The M&A analysis process, he said, is underway and the Austrian group has “already taken a close look at the first strategic acquisition opportunities."

Semperit confirmed its 2021 earnings outlook at €395 million, but noted that the target depends particularly on several factors.

The variables, he said, include: availability of raw materials; sales prices for medical protective gloves over the course of the year; and sufficient container availability for the delivery of products.