Semperit confirms 2023 outlook following ‘stable’ results

Vienna – Semperit Group has confirmed its 2023 financial outlook with earnings (EBITDA) set to come in between €70-€90 million, against €100 million reported the year before.

The overall economic slowdown is expected to have “a noticeable impact” on the industrial sector in the second and third quarter, said Semperit in an announcement 10 May.

The sector includes Semperflex hose production unit; Sempertrans conveyor belts; Semperform gasket and sheeting unit; and Semperseal seals manufacturing business.

“Customers’ inventory optimisation programmes are already leading to restrained ordering behaviour as expected,” said the Vienna-based polymer group.

As a result, it went on to say, lower sales volumes and increased pressure on margins are to be expected.

According to Semperit, the option to pass on potential further costs to customers will depend on the price sensitivity of the respective customers and the dynamics of markets.

Against this backdrop and with “today’s perspective”, Semperit said it expected earnings to come in at the lower end of the estimation.

Over the first quarter the year, Semperit’s earnings (EBITDA) in ‘continued operations’ increased slightly to €20.8 million, as margin remained unchanged at 11.2%

Semperit posted a 2% increase in sales of continued operations to €185.2 million, reflecting a 3.2% increase in industrial sector’s revenue at €176.4 million.

The Austrian group linked the increase in industrial sales to a pricing effect of between 15.2% and 29.0% in the course of the 2022 financial year.

Sales volumes declined in all industrial segments except Sempertrans, said the group.

The conveyor belting unit benefited from “a positive market environment and rising demand”, which led to volume growth of just under 23%.

The significant performance by Sempertrans, said the group, was another key contributor to the higher revenue development.