Semperit targets strong earnings growth despite market challenges

Vienna – Semperit Group expects to see a strong improvement in earnings (EBITDA) in 2024, having built a “robust financial base and outlook” during last year.

The Austrian industrial elastomer group projects earnings to come in at €80 million this year, up from €71.8 million reported last year, according to its latest financial statement.

Commenting on current market developments, Semperit said it expected the trading environment to remain challenging in the coming months.

In particular, “no significant recovery in demand is expected for the Semperit Industrial Applications (SIA) division in the short term,” said the group.

The dim outlook for the SIA division, which produces hose and profiles, reflects an expected continuation of inventory reductions by customers during the first half of 2024.

In addition, Semperit said demand from relevant customer industries such as construction machinery and agricultural machinery, was "not yet showing any signs of recovery.”

For the Semperit Engineered Applications (SEA) division, however, the group expects 'good demand' from the mining, healthcare, food and railroad industries should continue.

The SEA division includes belting and the newly acquired liquid silicone specialist Rico.

The two new divisions, into which the former Semperit industrial sector has been reorganised, fared differently in 2023. (ERJ report)

SIA's sales fell 26.5% year-on-year to €331 million, while SEA posted a 23.7% increase to €351 million, of which €37.2 million was attributable to Rico. 

Against this background and initiated cost-reduction measures, Semperit said it expects EBITDA to come in at around €80 million in 2024.