The economic downturn and the effects of the corona crisis lead to opposing developments in the Industrial and Medical sectors of the publicly listed Semperit Group: in the business for medical protective gloves, a significant increase in demand and a strong rise in price levels has been observed since the outbreak of the corona crisis. Against this background, and also in view of the improved operating performance, the results of the Medical sector will be significantly higher in 2020 compared to the previous year’s level.
The emerging effects of the global pandemic are considered to be limitedly sustainable. For this reason, the strategic landmark decision of January 28, 2020, according to which Semperit will focus on the industrial rubber business in the future and separate from the medical business, is still valid, regardless of the recent developments observed in the wake of the corona crisis.
The Industrial sector was hit by the global recession, which has intensified in recent months due to the worldwide lockdown. The results of the Industrial Sector of the current financial year will therefore be noticeably below the previous year’s level. However, the positive effects from the medical business in the foreseeable future will significantly compensate for this decline.
Based on current figures, EBITDA of the Semperit Group for the full year is currently expected to be significantly higher than the previous year’s figure (2019: EUR 67.8 million). However, the currently unforeseeable duration of the corona crisis and its impact on the global economy make it difficult to provide reliable forecasts regarding financial effects on the Semperit Group.
In view of the developments described above, Semperit reviews the existence of indicators for a reversal of past impairment losses or impairment losses in the Medical or the Industrial sector respectively. The amount of any value adjustments will be announced at the latest upon publication of the half-year financial report.
Taking this into account, the Semperit Group currently expects an EBIT of EUR 110.0 to 160.0 million (2019: EUR -16.5 million) for the full year 2020 – depending particularly on the further development of the price level for medical protective gloves and the sufficient availability of raw materials for their production.
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 medical and industrial sectors: examination and surgical gloves, hydraulic and industrial hoses, conveyor belts, escalator handrails, construction profiles, cable car rings, and products for railway superstructures. The headquarters of this long-standing Austrian company, which was founded in 1824, are located in Vienna. The Semperit Group employs around 6900 people worldwide, including about 3600 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 2019, the group generated revenue of EUR 840.6 million and an adjusted EBITDA (without one-off effects) of EUR 63.8 million.