Semperit (SEM) Q3 2024 earnings summary

Executive summary

• EBITDA rose 11.9% year-over-year to EUR 63.9 million, with margin up 1.6 points to 12.6%. Earnings after tax turned positive at EUR 7.1 million from a prior-year loss of EUR 26.8 million.

• Free cash flow reached EUR 22.4 million by September, supporting growth investments.

• The company completed the sale of its Surgical Operations division as of June 30, 2024, focusing on industrial elastomer products.

• Cost-cutting and efficiency measures, along with strategic investments in production capacity, supported improved profitability.

• 2024 EBITDA guidance of EUR 80 million and CapEx of EUR 70 million reaffirmed.

Financial highlights

• Revenues declined 2.5% year-over-year to EUR 506.6 million due to lower volumes and subdued demand.

• EBITDA increased to EUR 63.9 million (+11.9%), while EBIT fell 16.3% to EUR 26.8 million due to higher depreciation and financial expenses.

• Free cash flow rose 7.9% to EUR 22.4 million; cash and cash equivalents stood at EUR 111.1 million.

• CapEx totaled EUR 54.7 million, including growth projects in Odry and RICO.

• Net financial debt increased to EUR 128.1 million (up 11.3% from year-end 2023), with a leverage ratio of 1.7x.

Outlook and guidance

• 2024 EBITDA guidance confirmed at around EUR 80 million; CapEx at EUR 70 million.

• Challenging market conditions expected to persist into 2025, especially in construction and agriculture.

• Expectation of stable order intake and stagnant development into H1 2025.

• Midterm 2026 targets remain unchanged.

• Good visibility for the next six months despite a difficult economic environment.