Semperit (SEM) Q2 2024 earnings summary

Executive summary

• EBITDA rose 7.9% to €47.3m in H1 2024, with margin up to 13.7% and earnings after tax more than doubling to €9.6m, despite a 2.9% revenue decline to €345.5m.

• Fully exited the glove/medical business, focusing exclusively on industrial elastomers and digitalization initiatives.

• Cost-saving measures delivered €14.4m in annualized savings, exceeding targets and supporting margin improvement.

• Free cash flow improved to €23.6m before divestments, and €30.2m after the medical business sale.

• Balance sheet remains solid with an equity ratio of 45.7% and liquidity reserves of €124m.

Financial highlights

• Revenue for H1 2024 was €345.5m, down 2.9% year-over-year; EBITDA increased to €47.3m (+7.9%), with margin up 1.4pp to 13.7%.

• EBIT fell 18.6% to €23.7m, with margin down to 6.9%.

• Earnings after tax more than doubled to €9.6m; EPS rose to €0.47.

• Free cash flow surged to €23.6m from €1.8m in H1 2023; CAPEX up 73.6% to €38.1m.

• Net financial debt/EBITDA at 1.6x; cash reserves at €124m; €100m unused credit facility available.

Outlook and guidance

• 2024 EBITDA guidance confirmed at around €80m; CAPEX expected at around €70m.

• Challenging market environment expected to persist into 2025, especially for commodity businesses.

• Midterm targets for 2026: revenues above €900m and EBITDA around €120m, assuming market recovery and normalized inflation.