Semperit (SEM) Q4 2024 earnings summary

Executive summary

• Leadership transition with new CEO Manfred Stanek, emphasizing operational excellence and strategic focus on industrial elastomers and engineered technology niches.

• Achieved all strategic milestones, including full exit from glove business, realignment into two divisions (SIA and SEA), and acquisition of RICO for engineered technology.

• Focus on organic growth, innovation, and readiness for market recovery, aiming to return to over EUR 1 billion in revenues.

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

• Free cash flow nearly doubled to EUR 45.8 million, supporting a stable dividend proposal of EUR 0.50 per share.

Financial highlights

• EBITDA increased 21.1% year-over-year to EUR 84.9 million, with margin up 2.3 percentage points to 12.5%.

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

• Revenues slightly declined by 0.8% to EUR 676.6 million, with RICO consolidation offsetting lower volumes.

• Operating EBITDA (adjusted) reached EUR 86.3 million, up 8% year-over-year, excluding EUR 1.5 million digitalization project costs.

• Free cash flow up 74.4% to EUR 45.8 million; cash reserves at EUR 126 million.

Outlook and guidance

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

• CapEx planned at EUR 60 million for 2025, split between maintenance and strategic growth projects.

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

• Challenging market conditions expected in H1 2025; recovery anticipated in H2 2025 in select regions.

• Project expenses for digitalization (oneERP) expected at EUR 5 million annually.