SURTECO GROUP SE
SURTECO GROUP SE: Sales up compared with previous year on the back of Omnova integration; Ongoing weak demand and one-off exceptional effects impact negatively on earnings

SURTECO GROUP SE: Sales up compared with previous year on the back of Omnova integration; Ongoing weak demand and one-off exceptional effects impact negatively on earnings

• Group sales increase by 3 % to € 429 million
• EBIT at € 7.6 million, adjusted EBIT at € 20.9 million

SURTECO GROUP SE, holding company for leading national and international brands of surface technology, succeeded in increasing sales by 3 % compared with the previous half year to € 428.8 million on the back of integration of sales from the acquisition of the Omnova divisions in March 2023. However, a significant reduction in demand, particularly in Europe and North America, and one-off costs in connection with the Omnova acquisition and the purchase price allocation (PPA) exerted a negative impact on the result. Earnings before financial result and income tax (EBIT) amounted to € 7.6 million and were consequently -77 % below the equivalent year-earlier value. Adjusted by all one-off expenses, adjusted EBIT amounted to € 20.9 million. Adjusted EBITDA was € 45.1 million after € 55.2 million in the previous year.

The company introduced measures in the areas of pricing, personnel, purchasing, operations and working capital in order to improve earnings. However, additional one-off restructuring expenses will be incurred in the second half year of 2023. As a consequence, reported EBIT of € 20 to 30 million (original forecast: € 45 to 55 million) is now anticipated for the business year 2023. Adjusted EBIT for the year overall is projected to be in the range of the original EBIT forecast.

All the measures are designed to achieve sustained EBIT above € 60 million and EBITDA above € 110 million before one-off effects starting from the business year 2024.

“In the original forecast, we assumed a revival of demand in the second half year of 2023. Unfortunately, the trajectory in the important markets of Europe and North America is trending in a different direction. As a consequence, we have put together a comprehensive package of measures in order to take decisive action and provide a counterweight,” commented Wolfgang Moyses, Chairman of the Management Board of SURTECO GROUP SE.

You will find the report for the first half year of 2023 and other information about SURTECO GROUP SE on the Internet at www.surteco.com.

Important indicators of SURTECO GROUP SE (in € million)

1. One-off effects (Aquissition and integration costs, consulting fees, PPA Step-up inventories)
2. Difference to balance of segment earnings due to internal clearing
3. One-off effects (Aquissition and integration costs, consulting fees, PPA Step-up inventories, PPA depreciation)
4. Based on a number of shares amounting to 15,505,731
5. Net financial debt to Equity

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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. The group manufactures its products at 26 locations on four continents worldwide and employs approximately 3,800 people. In 2022, the company achieved an annual turnover of €748 million and an EBIT of €40 million. 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.