Semperit (SEM) Q4 2024 earnings summary

Executive summary

• Achieved a 21.1% year-on-year increase in EBITDA to EUR 84.9 million, with margin up 2.3 percentage points to 12.5% in 2024, exceeding guidance.

• Earnings after tax turned from a EUR 17 million loss in 2023 to a EUR 11.5 million profit in 2024.

• Free cash flow nearly doubled to EUR 45.8 million, supporting growth investments and a proposed dividend of EUR 0.50 per share.

• Achieved all strategic milestones, including full exit from glove business and acquisition of RICO, sharpening focus on industrial elastomers and engineered technology.

• Divisional structure confirmed as growth platform, with cost leadership in Industrial Applications and niche specialization in Engineered Applications.

Financial highlights

• Revenue slightly declined by 0.8% to EUR 676.6 million, with volume declines offset by RICO's full-year contribution.

• EBITDA increased by over 20% year-over-year, driven by cost savings and operational improvements.

• Net debt reduced to EUR 103 million (1.2x EBITDA), with cash reserves at EUR 126 million.

• Equity ratio improved to 47.2% at year-end 2024.

• Cost reduction program delivered EUR 12.6 million in 2024, totaling EUR 18.4 million since inception.

Outlook and guidance

• Operational EBITDA for 2025 expected between EUR 70 million and EUR 90 million, depending on market recovery.

• CapEx guidance for 2025 is EUR 60 million (EUR 40 million maintenance, EUR 20 million strategic growth projects).

• Targeting operating EBITDA of EUR 120 million in 2026, contingent on market support.

• Market recovery anticipated in the second half of 2025, with continued challenging conditions in the first half.

• Project expenses for digitalization (oneERP) expected at ~EUR 5 million in 2025.