VIENNA—Semperit Group reported an increase in earnings for the first half despite a "still challenging market environment."
First-half earnings (EBITDA) were up by 8 percent year-on-year to $52.9 million (€47.3 million), the company said Aug. 13.
Sales for the period fell 3 percent year-on-year to $386.6 million amid mixed showing by the group's two divisions: Semperit Industrial Applications (SIA) and Semperit Engineered Applications (SEA).
SIA, which produces hose and profiles, reported a decline in volumes leading to a 20.6-percent drop in revenue to $170.9 million.
In contrast, SEA—'form,' belting and Rico/liquid silicone—benefited "above all from the acquisition of Rico and from higher sales volumes at form."
First-half revenue within the division grew 18.0 percent year-on-year to $215.7 million, of which $52.6 million was attributable to Rico.
During the first six months of the year, Semperit said total expenses decreased by 4.5 percent to $339.8 million.
Cost of materials fell by $26 million or 13.8 percent to $162.3 million, reflecting an easing of raw materials prices and lower sales volumes in individual business divisions. Personnel expenses increased to $126.3 million in the first half of 2024 due mainly to the Rico takeover.
Semperit's cost-cutting program introduced early in 2023 also reduced expenses by a total of $16.1 million, of which $9.6 million came into effect in the first half of 2024.
The Vienna-based group said 83 percent of the savings related to personnel expenses and the remainder to "other operating expenses."
"Economic headwinds continue as expected, but Semperit remains well on track and significantly increased profitability in the first half of 2024," said CEO Karl Haider.
While "the challenging market environment" is expected to persist into 2025, Haider said "Semperit stands on a strong and healthy foundation."
The group has drawn up a medium-term growth plan with targets to increase group revenue to "more than €900 million" (approximately $1 billion) by 2026, up from $806.8 million reported in 2023.
Semperit also introduced a target to increase earnings by over 50 percent to $134 million by 2026, up from $80.3 million in 2023.
