Engineered products drive 9% earnings growth at Semperit

Vienna – Semperit Group has reported a 9% year-on-year rise in earnings (EBITDA), to €23 million, on first-quarter sales marginally higher at €176 million.

Amid a generally ‘challenging market environment,’ the gains were driven by the Vienna-based group's Semperit Engineered Applications (SEA) segment.

Following the sale of its medical gloves unit last year, Semperit noted diverging performances at its two divisions Semperit Industrial Applications (SIA) and SEA.

Semperit said its SIA unit, comprising hoses and profiles, had seen “persistently challenging economic situation”, leading to a 25% decline in sales to €75 million.

First quarter earnings at the SIA segment fell 21% year-on-year to €13.8 million, Semperit's quarterly figures issued 15 May show.

The SEA division, on the other hand, benefited substantially from higher sales volumes within its portfolio, which includes 'forms', belts and silicone rubber products.

Revenue at the SEA unit increased 31.7% year-on-year to €101.5 million, of which €24.3 million was linked to the acquisition of silicone rubber specialist Rico.

The SEA division reported a 17.2% year-on-year increase in EBITDA to €15.4 million for the first three months of this year.

Group-wide, total expenses decreased by 3.6%  year-on-year to €156.1 million, reflecting a 15.9% decline in cost of materials to €74.8 million.

Semperit linked the lower costs in the first quarter primarily to easing raw material prices and lower sales volumes in the SIA division.

Labour expenses, however, increased by 17.2% year-on-year to €57.8 million, due largely to the takeover of Rico (ERJ report).

Other effects included inflation-related wage and salary increases, which were partially offset by capacity-related adjustments to headcount.

“The market environment remained challenging, but the cost-cutting measures we introduced at an early stage are taking effect,” said CEO Karl Haider.

The group, Haider added, is fully implementing its industrial strategy (ERJ report) with investment in growth while increasing sales of higher-value products.

Semperit is also closer to fully divesting its medical rubber gloves unit Sempermed, which was acquired by southeast Asian gloves manufacturer Harps Global Pte. Ltd last September. (ERJ report)

Under the deal, Semperit was to take over the contract manufacturing of surgical gloves for Harps for up to five years – until 2028 – after selling and handing over the majority of the business.

However, Semperit said, “a so-called co-use agreement was concluded with Harps already at the end of March 2024.”

That agreement stipulates that Harps can use certain properties at Semperit’s Wimpassing production site in Austria, after completing the purchase of Sempermed.

Semperit said it, therefore, now expects the divestment to be fully completed within the next 12 months.