Semperit expects €50m impairment loss for medical unit

Vienna – Semperit AG Holding expects to report an impairment loss of approximately €50 million for its medical sector, Sempermed, in the third quarter of 2022, the Austrian group has announced.

“Against the backdrop of the market dynamics for examination and protective gloves, the executive board reviewed the estimates and assumptions relevant to the valuation with regard to the medical sector,” said a group statement 13 Sept.

“As a result, a probable impairment loss in the order of approximately €50 million as of 30 September 2022 was identified for the segment assets of Sempermed,” it added.

Semperit said it would include the impairment loss in its third quarter results, which will be published 16 Nov.

The medical gloves sector, which Semperit currently intends to divest, reported a 93% year-on-year decline in earnings to €15.6 million in the first half of the year, as sales fell 50% to €198.3 million.

Semperit linked the decline to a sharp fall in price levels following the end of the boom in demand for medical protective gloves.

Furthermore, significant cost increases weighed on the unit as it returned to normality following two years of strong performance.