Given the boost in the gloves market due to Covid-19, Austrian public listed firm Semperit AG Holding says it will continue to run its medical division for another nine months, “in view of the extremely positive earnings contributions that the glove business is currently making in the context of the pandemic-related exceptional economic situation”.
In January, Semperit had stated that it would divest its medical business Sempermed, which includes Malaysia-based glove maker Latexx Partners Bhd. It adds that the decided separation from the medical business again would be looked at in nine months. “The strategic landmark decision made in January to transform the Semperit Group into an industrial rubber specialist is still valid,” the firm said in a statement.
Sempermed is one of the world’s leading manufacturers of examination and surgical gloves as well as protective gloves for the industrial sector. In its industrial sector are Semperflex, Sempertrans and Semperform, which make hydraulic and industrial hoses, conveyor belts and moulded as well as extrusion products made of rubber and plastic.
Reports in June had said that Malaysia-based world leading glove supplier Top Glove was a frontrunner to take over Latexx Partners. Also named was Penang-based MQ Technology Bhd (MQ Tech) as another buyer.
Semperit had paid close to RM600 million for Latexx Partners to secure a 98.56% stake in 2012 from then largest shareholder and CEO, businessman Low Bok Tek. Latexx Partners was delisted from Bursa Malaysia in 2013 following its privatisation by Semperit.
The Austrian manufacturer recently upwardly revised its earnings outlook for 2020. In addition to the positive effects from the Medical business for the foreseeable future, Semperit says its Industrial Sector has now also slightly recovered, compared with earlier assumptions regarding the effects of the global recession and coronavirus crisis.
Against this background and based on current figures, EBITDA of the Semperit Group for the full year is expected to range between EUR165 and 200 million, thus exceeding the previous year’s value (2019: EUR67.8 million) more clearly than assumed in July. Accordingly, EBIT of the Semperit Group for the full year 2020 will be between EUR195 and 230 million (forecast in July 2020: EUR110-160 million; EBIT 2019: EUR16.5 million).
It does add that the earnings forecast depends, in particular, on the further development of the price level for medical protective gloves and the sufficient availability of raw materials for their production.