EQS-News: SURTECO GROUP SE: Sales above year-earlier value on the back of Omnova acquisition; one-off effects depress earnings

SURTECO GROUP SE: Sales above year-earlier value on the back of Omnova acquisition; one-off effects depress earnings

• Group sales increase by 7 % to € 637.3 million
• EBIT at € 4.1 million, adjusted EBIT at € 27.6 million

Buttenwiesen, 27 October 2023 – SURTECO GROUP SE, holding company for leading national and international brands of surface technology, increased sales by 7 % to € 637.3 million compared with the year-earlier value during the first three quarters of 2023 on the back of the acquisition of the Omnova divisions in March 2023. While the cost of materials ratio improved during this period to 50.7 % (2022: 51.6 %), the personnel expense ratio increased to 26.5 % (2022: 22.7 %) owing to provisions set aside for personnel measures. The weak demand across segments, the one-off costs in connection with the Omnova acquisition, provisions for personnel measures and the purchase price allocation (PPA) exerted a negative impact on the result overall. Earnings before financial result and income tax (EBIT) amounted to € 4.1 million and were consequently -90 % below the year-earlier value of € 41.1 million. Adjusted EBIT amounted to € 27.6 million after adjustment for one-off expenses.

Against the background of ongoing difficult framework conditions and the one-off expenses, EBIT in the range from € 5 to 15 million is now anticipated for the business year 2023. Adjusted EBIT (adjusted by one-off expenses) is projected in the range from € 35 to 45 million. Group sales will also be significantly below the original forecast of € 920 to 950 million.

“Regrettably, the framework conditions deteriorated further during the course of the third quarter. The consistent implementation of our programme to improve earnings was therefore all the more important. This resulted in provisions during the current year but our strategy will help us to achieve our growth targets in future,” commented Wolfgang Moyses, Chairman of the Management Board of SURTECO GROUP SE.

You will find the report on the first three quarters 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, provisions for staff measures,
   
   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, provisions for staff measures,
   
   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.