Vienna – Semperit AG will go ahead with plans to sell its rubber gloves production business, Sempermed, despite a boost in segment sales and profits in the first half of 2020.
In its results statement 14 Aug, Semperit said it considered the positive effects of the global Covid-19 pandemic on the business to be of “limited sustainability.”
Therefore, it said, the strategic decision to separate the unit and focus on the industrial rubber business in the future is still valid.
The separation, however, will be delayed, in view of the ongoing Covid pandemic and rising demand.
Sempermed lifted Semperit’s earnings and profitability significantly during the first half of 2020, despite declines in the Austrian group’s industrial sector.
Group earnings (EBITDA) increased 47.2% year-on-year to €57.6 million, helped by a boom in the medical segment. Earnings margin was up from 9.0% to 13.7% during the first six months of the year.
Semperit delayed a decision to separate its medical business in order to focus on gloves supply security in Austria in June.
Earlier in January, the Austrian group had disclosed plans to divest its Sempermed gloves making unit, as part of a strategy to focus on the industrial segment.
With two gloves production facilities in Wimpassing, Austria; and Kamunting in Malaysia, Sempermed registered sales of €88 million and earnings of €23.0 million in the first half of 2020.
In addition, the unit has a packaging production plant in Sopron, Hungary and a gloves mould manufacturing site in Nilai, Malaysia.