Even with the difficult market environment and weak economy, the Semperit Group still showed a stable operational development for the first half of 2016.
The group’s revenue slightly decreased to EUR438.7 million in the first half of 2016 from the previous year’s EUR450.8 million. But the group’s EBITDA improved by 4.8% to EUR52.8 million (after EUR50.3 million). EBIT was stable in comparison with the previous year at EUR36.2 million (after EUR36.2 million). The EBITDA margin and the EBIT margin improved slightly to 12.0% (after 11.2%) and 8.3% (after 8.0%) respectively.
The weak development in the medical sector was also offset by the increase in revenue and high profitability in the industrial sector.
“Due to our strong sales performance, a capacity utilisation above the industry average and new capacities in the industrial sector, we showed a stable operational development in the first half of 2016. However, the low demand in economically sensitive fields and the cost pressure due to rising energy and raw material prices combined with weak sales prices in the glove business are beyond our influence,” CEO Thomas Fahnemann comments on the half-year results.
“We are taking countermeasures by using a focused sales strategy and programmes for optimisation and efficiency enhancement as well as by opening up new markets. This and our new highly efficient production sites make us well prepared to perform better than the market even in the current environment,” he adds.
Cash and cash equivalents amounted to EUR133.0 million on June 30, 2016 compared to EUR126.4 million at the end of 2015. “Our cash balance has increased again, although we currently run the largest investment programme in corporate history and we have paid an attractive dividend in the second quarter. This positive development shows our high ability to generate cash even in a difficult environment,” states Semperit CFO Johannes Schmidt-Schultes.
The industrial sector (Semperflex, Sempertrans and Semperform segments) showed a very satisfying development contrary to the market trend.In a weak market environment, the Semperform segment profited from the successful integration of the German profile manufacturer Leeser, as well as the increase in market share in the handrail business.
Revenue of the industrial sector rose 3.7% to EUR269.0 million in the first half of 2016. EBITDA climbed 2.3% to EUR52.3 million.
The medical sector (Sempermed segment) was impacted by a difficult market environment.Revenue of the medical sector decreased by 11.4% to EUR 169.7 million in the first half of 2016 due to heavy price pressure and the focus on high-margin customer relationships. EBITDA decreased to EUR7.9 million (after EUR11.6 million).
In the industrial sector, Semperit refers to a good order situation for the next months, even though a slowdown is possible in some business segments. In the medical sector, the focus will be on the implementation of further production capacities in Malaysia. The profitability shall be improved by continuing process optimisations and efficiency enhancements as well as realising a cost reduction programme.
The Semperit Group will continue its growth strategy consistently despite challenging conditions. The focus will be on entering into new markets in the industrial sector and on the expansion and optimisation of existing production capacities. In the medical sector, the focus will be set on the expansion of the glove production in Malaysia in addition to further production and sales optimisations as well as efficiency enhancements. Altogether, capital investments (CAPEX) of approximately EUR 60 million are planned for 2016.