The publicly listed Semperit Group continued its organic growth in the first half of 2014, showing a good revenue and earnings development. Revenue in the first six months of 2014 rose 2.9 percent year-on-year to EUR 464.3 million from EUR 451.4 million in the prior-year period. Both the Medical and Industrial Sectors contributed to growth based on strong sales performances and higher global sales.
This more than offset the decrease in selling price levels caused by the substantial drop in raw material prices. Double-digit growth was achieved in the Medical Sector, whereas the more cyclically-dependent Industrial Sector further increased its revenue and profitability. In the first half of 2014, the Group’s consolidated EBITDA improved by 4.6 percent to EUR 68.8 million from EUR 65.8 million in the previous year. EBIT was up 5.7 percent to EUR 46.2 million, compared to the prior-year level of EUR 43.7 million.
In addition to the positive operating development, the resolute implementation of strategic raw material management, stringent cost discipline as well as further efficiency improvements related to good capacity utilization contributed to the rise in earnings. The EBITDA margin was up from 14.6 percent to 14.8 percent, and the EBIT margin climbed to 10.0 percent from 9.7 percent in the previous year.
Semperit achieved a net result (earnings after tax) of EUR 27.8 million, which declined slightly from the comparable figure of EUR 28.2 million in the first half of 2013 due to the somewhat higher financial expenses. “The expansion of our sales activities and the further globalization of our business paid off again in the first half of 2014. This enabled us to achieve double-digit sales increases and to grow once more faster than the market. We not only gained market shares and attracted new customers but also managed to further increase profitability. This can be attributed to our high capacity utilization as well as the successful, active management of our raw material needs”, said Semperit CEO Thomas Fahnemann in commenting on the current business development.
Semperit also held up well in the second quarter of 2014. Although production and sales volumes could be significantly increased, the lower raw material prices compared to the prior-year period resulted in a slight revenue decline to EUR 231.6 million, down from EUR 236.2 million in the second quarter of 2013. EBITDA fell by 2.9 percent to EUR 35.4 million, and EBIT decreased to EUR 23.9 million, a drop of 4.2 percent. In spite of these earnings declines, profitability remained at a very good level as reflected by the EBITDA margin of 15.3 percent and an EBIT margin of 10.3 percent.
Semperit boasted a solid capital base at the reporting date of June 30, 2014. The equity ratio remained at a consistently high level of 48.9 percent compared to 48.3 percent as per December 31, 2013. Cash and cash equivalents amounted to EUR 157.3 million, down from EUR 182.6 million at the end of 2013, which can be mainly attributed to the dividend payment. “Despite distributing a dividend which was higher than in the previous year and implementing an extensive investment program, we still have a positive net liquidity of EUR 17.5 million.