Semperit increases nine-month earnings despite lower sales

Vienna – Semperit Group has increased its nine-month earnings (EBITDA) by 12%, helped largely by a cost-cutting programme launched in early 2023.

Earnings for the first three quarters rose 11.9% year-on-year to €63.9 million on 2.5% lower sales of €506 million, Semperit announced 7 Oct.

Earnings after tax significantly improved to €7.1 million, up from a loss of €26.8 million in the same period the year before.

Semperit linked the gains to a cost-cutting programme launched last year and the realignment of its business into two divisions of Semperit Industrial Applications (SIA) and Semperit Engineered Applications (SEA).

“‍‍The results for the first three quarters confirm the effectiveness of our strategy,” said Semperit’s outgoing CEO Karl Haider.

Haider went on to note that the group was still “facing headwinds from the overall market” with the challenging environment set to persist into 2025.

However, he said, early cost savings and investments in capacity expansion will place Semperit in a good position to grow.

Breaking down the segments, Semperit said its businesses reported mixed performance during the nine-month period.

The SIA, including hoses and profiles, saw a 16.1% year-on-year decline in sales to €222 million, amid a “shift in the product mix and the persistently challenging economic situation.”

Meanwhile, SEA, which includes ‘form’, belting and Rico/LSR operations, posted an 11.7% increase in sales to €284.7 million.

The higher SEA sales, Semperit said, was achieved despite lower volumes within the belting segment and included a €71 million contribution from Rico’s takeover in August last year.

Earnings within both divisions remained stable, according to Semperit.

Semperit’s total expenses during the nine months decreased by 3.2% year-on-year to €446.6 million, as cost of materials (including energy and purchased services) fell by 9.5% to €213.5 million.

Personnel expenses increased to 9.2% year-on-year to €166.4 million, mainly due to the takeover of Rico Group last year.