Semperit reports increase in profitability for first half 2024

Vienna – Semperit Group has increased first half earnings (EBITDA) by 8% year-on-year to €47.3 million despite a “still challenging market environment.”

Sales for the period fell 3% year-on-year to €345.5 million amid mixed showing by group's two divisions: Semperit Industrial Applications (SIA) and Semperit Engineered Applications (SEA).

SIA, which produces hose and profiles, reported a decline in volumes leading to a 20.6% drop in revenue to €152.8 million, Semperit reported 13 Aug.

In contrast, SEA – 'form', belting and Rico/liquid silicone – benefited “above all from the acquisition of Rico and from higher sales volumes at form.”

First half revenue within the division grew 18.0% year-on-year to €192.8 million, of which €47.0 million was attributable to Rico.

During the first six months of the year, Semperit said total expenses decreased by 4.5% to €303.7 million.

Cost of materials fell by €23.3 million or 13.8% to €145.1 million, reflecting an easing of raw materials prices and lower sales volumes in individual business divisions.

Personnel expenses increased to €112.9 million in the first half of 2024 due mainly to the Rico takeover.

Semperit’s cost-cutting programme introduced early in 2023 also reduced expenses by a total of €14.4 million, of which €8.6 million came into effect in the first half of 2024.

The Vienna-based group said 83% of the savings related to personnel expenses and the remainder to “other operating expenses.”

“Economic headwinds continue as expected, but Semperit remains well on track and significantly increased profitability in the first half of 2024,” said CEO Karl Haider.

While “the challenging market environment” is expected to persist into 2025, Haider said “Semperit stands on a strong and healthy foundation.”

The group has drawn up a medium-term growth plan with targets to increase group revenue to “more than €900 million” by 2026, up from €721.1 million reported in 2023.

Semperit has also introduced a target to increase earnings by over 50% to €120 million by 2026, up from €71.8 million in 2023.