Cautious Semperit lowers earnings forecast on global outlook

Vienna – Austrian rubber-based products manufacturer Semperit AG expects annual group-wide earnings to decline in 2023 amid an overall decline in its main markets.

Now principally an industrial products maker – following its 'exit' from the medical gloves market, Semperit expects the slowdown to have “a noticeable impact" across its four business segments.

The group comprises: Semperflex hose production unit; Sempertrans conveyor belts; Semperform gasket and sheeting unit; and Semperseal seals manufacturing business.

In particular, the impact will be felt in the first half, as customers are expected to optimise inventory and demonstrate “restrained ordering behaviour”, Semperit said 23 March.

Passing on cost rises to customers will depend on the price-sensitivity and dynamics in segment-specific product markets, it added in an annual results statement.

“As a result, lower sales volumes and increased pressure on margins are to be expected,” the Vienna-based manufacturer signalled to investors.

In addition, Semperit said its earnings position might continue to be significantly influenced by developments such as the Russia-Ukraine conflict.

“The executive board continues to expect a high degree of volatility with regard to the price development and availability of energy in Europe,” it stated.

Possible uncertainty regarding the availability of necessary raw materials and supplies and their price development also pose a further risk.

Semperit further cautioned that visibility regarding the further development of Covid and possible effects on international production sites remained low.

In particular, the Covid issue applies to China, both as a location of Semperit plants and with regard to global supply-chains.

“Against this backdrop, the executive board expects EBITDA [earnings] from continued operations of €70-90 million for the 2023 financial year,” the management team concluded.

In 2022, across its ‘continuing operations’, Semperit reported an 86% year-on-year increase in earnings to €100 million, on overall sales almost 30% higher at €780 million.