Semperit starts 2021 with best quarterly results since the turn of the millennium

• Significant increase in total revenue by 62.3% to EUR 323.1 million in the first quarter of 2021 compared to the first quarter of 2020
• Very high revenue growth in the Medical Sector (+148.9%); Industrial Sector also records recovery with +7.0% revenue growth
• EBITDA increased more than sevenfold from EUR 16.9 million to EUR 122.2 million, EBITDA margin improved to 37.8% (Q1 2020: 8.5%)
• EBIT multiplied by more than elevenfold to EUR 110.8 million, EBIT margin almost sevenfold to 34.3%
• Increase in free cash flow by 66.7% to EUR 38.8 million

Vienna, Austria, 19 May 2021 — The publicly listed Semperit Group started extremely successfully into 2021 despite ongoing restrictions caused by the corona pandemic: “Notwithstanding the pandemic-related adverse effects such as a challenging supply chain situation as well as increasingly rising raw material prices and transport costs, we generated the best quarterly result since the turn of the millennium in the first quarter of 2021,” says Martin Füllenbach, CEO of Semperit AG Holding. “We were able to multiply all relevant key figures compared to the same period of the previous year. Although the booming medical business once again made a significant contribution, the Industrial Sector also clearly recovered overall. This is the result of our successful restructuring.”

Record values thanks to growth in the Medical Sector and recovery of the Industrial Sector

The 62.3% increase in revenue to EUR 323.1 million, which was achieved in the first quarter of 2021, marks the best start to a year in the history of the Semperit Group – at least since the turn of the millennium. The 148.9% increase in revenue in the Medical Sector was largely driven by the continued high demand for medical protective gloves, with significantly higher sales prices more than compensating for the reduced sales volumes due to the limited availability of containers. At the same time, a recovery was initiated in the Industrial Sector, which was visible in a 7.0% increase in revenue primarily due to higher sales volumes in the Semperflex and Semperseal segments.

The very high increase in revenue translated into a sevenfold increase in consolidated EBITDA to EUR 122.2 million, with the EBITDA margin also improving significantly from 8.5% in the same period of the previous year to 37.8%. Similarly, consolidated EBIT rose from EUR 9.8 million in the same period last year to EUR 110.8 million. The EBIT margin also increased almost sevenfold to 34.3%.

At EUR 10.2 million, cash-relevant investments in tangible and intangible assets in the first quarter of 2021 were above the previous year’s level of EUR 6.8 million. The main focus continued to be mainly on capacity-maintaining investments.

Following the corresponding resolution at the Annual General Meeting on 27 April 2021, a dividend of EUR 1.50 per share was paid out, which at the same time sends a positive signal regarding the business performance to be expected in the future. After repayment of the outstanding   
EUR 30 million tranche of hybrid capital at the end of March, the Semperit Group is in a brilliant financial position: with a minimal net debt and an equity ratio of 45.8%

Outlook and strategic focus for 2021

Based on current figures, the Executive Board of Semperit AG Holding continues to assume that the group’s EBITDA for the full year 2021 will be around EUR 395 million and thus significantly higher than the EBITDA for 2020. This earnings forecast particularly depends on the timely availability of necessary raw materials and their price development, the sales prices for medical protective gloves during the course of the year, and sufficient container availability for the delivery of the Semperit Group’s products.

The Industrial Sector was affected by the global recession that began towards the end of 2019, the effects of which intensified in 2020 due to the corona crisis. Towards the end of 2020, however, first positive signs were visible again. A noticeable recovery of the markets in the Industrial Sector is expected for 2021.

The ongoing effects of the corona pandemic continue to have a positive impact on the price of medical products. We assume that the peak of the price development was reached at the end of the first quarter and that the price level will slowly decrease in the course of the year. Even if the vaccination campaigns are implemented on a broad scale in the foreseeable future, a clearly  positive price deviation compared to the pre-corona level will continue until well into 2021. This development has already been taken into account in the estimation of the expected EBITDA.

The strategic reorientation of the Semperit Group with a focus on the Industrial Sector will continue. The strong liquidity situation ensures that the company is also well positioned for potential M&A transactions. Work is also underway on a more sustainable orientation of the group based on ESG criteria.

About Semperit

The publicly listed company Semperit AG Holding is an internationally-oriented group that develops, produces, and sells in more than 100 countries highly specialised rubber products for the industrial and medical sectors: hydraulic and industrial hoses, conveyor belts, escalator handrails, construction profiles, cable car rings, products for railway superstructures, and examination and surgical gloves. The headquarters of this long-standing Austrian company, which was founded in 1824, are located in Vienna. The Semperit Group employs around 7,000 people worldwide, including about 3,800 in Asia and around 900 in Austria (Vienna and production site in Wimpassing, Lower Austria). The Group has 14 manufacturing facilities worldwide and numerous sales offices in Europe, Asia, Australia, and America. In 2020, the group generated revenue of EUR 927.6 million and EBITDA of EUR 208.6 million.