SURTECO GROUP SE: Sales for 2022 at € 747.7 million are slightly below sales in the record year 2021. EBIT at € 40.2 million falls significantly short but is within the corridor of the last forecast

SURTECO GROUP SE: Sales for 2022 at € 747.7 million are slightly below sales in the record year 2021. EBIT at € 40.2 million falls significantly short but is within the corridor of the last forecast  
 

• Earnings per share are € 1.63 after € 3.08 in the previous year
• Omnova acquisition makes contributions to earnings from 1 March
• Sales for 2023 are projected to be in the corridor € 920 to € 950 million. EBIT expected between € 45 and € 55 million.

Buttenwiesen, 14 April 2023 – In the business year 2022, sales at € 747.7 million (2021: € 757.1 million) in the SURTECO Group were within the expected range. Owing to the enduring high cost of materials, which could only be passed on in part and with a time lag, the Group generated EBIT of € 40.2 million (2021: € 72.5 million) in the business year 2022. Consolidated net profit fell by 47 % to € 25.2 million. The Management Board and the Supervisory Board will submit a proposal to the ordinary Annual General Meeting of SURTECO GROUP SE being held on 7 June 2023 – which will be held as an in-person event – that a payout of € 0.70 per share be made. This corresponds to a payout rate in relation to consolidated net profit of around 43 %.

“We started the year 2022 quite respectably but we were unable to avoid the declining demand owing to the difficult economic framework conditions in our sector. The ongoing consistent roll-out of our strategy, which involved the acquisition of Omnova, will enable us to effectively counteract the persistent challenges confronting us,” commented Wolfgang Moyses, Chairman of the Management Board of SURTECO GROUP SE.

The development of demand is reflected in all the segments. Sales in Decoratives fell by 2 % and EBIT by 36 %. The Segment Technicals was particularly impacted by the increased cost of materials with a drop in sales of 5 % and a fall in EBIT amounting to 96 %. An increase in sales of 5 % was achieved with Profiles, while EBIT only underwent a modest drop of 6 %.

Starting in the business year 2023, controlling for the Group will take place within the framework of strategy implementation through the new segments “Surfaces”, “Edgebands” and “Profiles”, and through the regional segments “North America” and “Asia/Pacific”. This will align our organizational structure more effectively with our markets and customers.

Outlook for 2023

On 28 February 2023, the company closed the acquisition of the divisions “laminates and performance films and coated fabrics” from Omnova. These sites in the USA and Thailand have now been contributing to the business of the SURTECO Group with laminates, foils and vinyl-coated materials since March 2023. Owing to the economic uncertainties due to the war in Ukraine and the high level of inflation, restrained demand is anticipated at least until the middle of 2023. Bearing this in mind, SURTECO anticipates sales within the corridor from € 920 to € 950 million for the business year 2023 overall and Group EBIT in the range € 45 to € 55 million.

In Q1-2023, excluding the Omnova businesses, preliminary revenue was approximately € 190 million (-11% vs. Q1-2022) and preliminary EBIT was € 8.5 million (-58% vs. Q1-2022). Due to the forecast weak demand in the first half of the year, these values are within the expected range.

You will find the Annual Report for the year 2022 and other information about SURTECO GROUP SE on the Internet at www.surteco.com.

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Profile of SURTECO

SURTECO GROUP SE with registered office in Buttenwiesen is a mid-sized holding company with international operations. The company listed on the stock exchange combines leading national and international brands for surface technology under one roof. The comprehensive product portfolio includes papers printed with decor designs, impregnated materials, release papers, decorative flat foils and edgebandings 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. With more than 3,000 employees at 22 production sites worldwide, the Group generates annual sales of around EUR 748 million in fiscal year 2022. 24 % of these sales are generated in Germany, 45 % in European countries outside Germany and a further 31 % in America, Asia and Australia. Customers of the SURTECO Group primarily come from the wood-based, flooring and furniture industries, as well as from interior design.

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.

Important indicators of SURTECO GROUP SE (in € million)

1. Difference to balance of segment earnings due to internal clearing
2. Based on a number of shares amounting to 15,505,731
3. Proposal of Supervisory Board and Management Board