SURTECO GROUP SE: Good start to the business year 2024 after a difficult year in 2023

SURTECO GROUP SE: Good start to the business year 2024 after a difficult year in 2023
 

• Earnings per share in 2023 amount to € -0.79 after € 1.63 in the previous year
• Sales for 2024 are projected to be in the range € 860 to 910 million. Adjusted EBITDA is expected between € 85 and 105 million.
• Good start to the business year 2024 with an increase of 44 % in EBITDA

 Buttenwiesen, 24 April 2024 – The sales of the SURTECO Group at € 835.1 million in the business year 2023 (2022: € 747.7 million) were in the range most recently expected. Owing to weak demand and one-off exceptional effects including acquisition of the Omnova divisions, earnings before financial result, income tax and depreciation and amortization (EBITDA) amounted to € 66.6 million after € 84.2 million in the previous year. After taking the one-off exceptional effects into account, the Group generated adjusted EBITDA of € 86.4 million (2022: € 84.2 million) in the business year 2023. Earnings before financial result and income tax (EBIT) amounted to € 8.1 million (2023: € 40.2 million) and consolidated net profit fell by -149 % to € -12.3 million as a result of one-off exceptional effects and finance costs for the acquisition. The Supervisory Board and the Management Board decided to retain the liquidity in the company for this year and to offset the net loss for the year arising in accordance with the German Commercial Code (HGB). A proposal for paying a dividend will therefore not be forthcoming for submission to the Annual General Meeting.

“The year 2023 was significantly impacted by one-off exceptional effects. However, we have thereby charted a course for the future, which is already paying off in the first quarter of the new year,” commented Wolfgang Moyses, Chairman of the Management Board of SURTECO GROUP SE.

The weak demand is reflected in all the segments. Sales in Surfaces eased by ‑4 % and EBIT fell back to € -2.6 million (2022: € 1.8 million). On the back of a drop in sales of -7 %, the Segment Edgebands generated EBIT of € 14.0 million after € 19.7 million in the previous year. Sales in Profiles eased by -8 % and EBIT amounted to € 9.5 million (2022: € 12.3 million). Owing to the acquired divisions, which are also allocated to this segment for the Thai business, sales for North America increased by 125 %. Conversely, EBIT fell to € -11.8 million (2022: € 7.2 million) owing to the acquisition-related one-off exceptional effects. Sales in the Segment Asia / Pacific were also impacted with a fall of -9 %. EBIT amounted to € 7.2 million after € 10.2 million in the previous year.

Outlook for 2024

SURTECO made a good start to the business year 2024 with preliminary sales of € 222.3 million (2023: € 205.7 million) and preliminary adjusted EBITDA of € 27.6 million (2023: € 19.1 million). Although a recovery in demand is not currently expected in 2024, one-off exceptional effects related to the acquisition will no longer apply and improvements are expected to be derived from the Performance Plus programme. As a consequence, the Group is anticipating sales between € 860 and € 910 million for the business year 2024 and adjusted EBITDA between € 85 and € 105 million.

You will find the Annual Report for the year 2023 and other information about SURTECO GROUP SE on the Internet at www.surteco.com.

The report for the first quarter of 2024 will be published on 30 April.

Profile of SURTECO

SURTECO GROUP SE with registered office in Buttenwiesen is a mid-sized enterprise listed on the stock exchange with international operations. The company combines leading national and international brands for surface technology under one roof. Its comprehensive product portfolio includes papers printed with decor designs, impregnated materials, release papers, decorative flat foils and edge bandings based on specialist technical papers and plastics. This portfolio is complemented by skirtings made of plastics, technical extrusions (profiles) for industry, and roller shutter systems. The Group has a workforce of more than 3,500 employees at 24 production sites worldwide, generating annual sales of around € 835 million. 20 % of these sales are in Germany, 39 % in European countries outside Germany and a further 41 % in America, Asia and Australia. Customers of the SURTECO Group primarily come from wood-based, flooring and furniture industries, as well as from interior design.

More information on the company is available at: www.surteco.com

The shares in SURTECO GROUP SE are listed on the official market (Prime Standard) of the Frankfurt and Munich Stock Exchanges under the ticker symbol SUR and ISIN DE0005176903. They are also traded on the stock markets in Berlin, Düsseldorf and Stuttgart.

Cautionary note regarding forward-looking statements

This press release may contain statements of future forecasts or expectations and other forward-looking statements and involves known and unknown risks and uncertainties. There is therefore no guarantee for the statements and expectations expressed herein. The actual results and developments may differ substantially. The company assumes no obligation to update any forward-looking statements contained herein or to adapt such information to future results or developments.

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Important indicators of SURTECO GROUP SE (in € million)

1. Less acquisition and integration costs, consultancy costs, provisions for personnel measures and PPA step-up inventories
2. Difference to balance of segment earnings due to internal clearing
3. Based on a number of shares amounting to 15,505,731