SIMONA AKTIENGESELLS

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SIMONA remains on track for growth

10/27/2021 | 01:08am

27.10.2021 Financial Press Releases Company

Group revenue up 37% - Substantial EBIT margin of 9.7% - Outlook dampened by surge in raw material and energy prices

Kirn, 27 October 2021. The SIMONA Group remains on track for growth, posting a significant year-on-year increase in revenue and earnings in all three quarters of the current financial year, alongside an improvement compared to its pre-pandemic levels. In the first nine months, revenue grew by 37.0 per cent to €400.4 million (previous year: €292.2 million). In the third quarter, revenue increased by 51.4 per cent to €140.5 million (previous year: €92.8 million). Earnings before interest and taxes (EBIT) rose by 82.0 per cent to €39.0 million in the first nine months (previous year: €21.4 million). This includes €4.1 million in government covid-19 aid in the United States, which is of a one-off nature. The EBIT margin stood at 9.7 per cent, compared to 7.3 per cent for the same period a year ago. In this context, EBIT almost doubled in the third quarter to €12.1 million (previous year: €6.9 million). The EBIT margin in the third quarter stood at 8.6 per cent (previous year: 7.4 per cent).

The increase in revenue is due in part to the effects of prices and acquisitions. Within the EMEA region, the acquisitions of SIMONA PLASTECH, Turkey, in the PVC foam sheet market, and SIMONA Stadpipe, Norway, in the aquaculture market, contributed to the increase in Group revenue. Revenue from sales in the Asia-Pacific region grew at an above-average rate due to consistently strong demand in the core market of the chemical process and semiconductor industry. In the Americas region, meanwhile, growth was driven by the industrial products business, which remained favourable, and by buoyant demand in the caravan and sanitary ware business.

"We will achieve a record level of revenue and earnings in 2021. Obviously, base and price effects play a role in revenue growth. At the same time, however, we were also able to make significant gains compared to the pre-crisis year of 2019. We are particularly pleased to achieve this forward momentum in a year in which we have had to coordinate the introduction of a new organisational structure in the EMEA region, compensate for the significant decline in our aviation business in the United States and contend with severe upheaval in the global commodity market. Our thanks go to all employees worldwide who have made these accomplishments possible. We are making good progress with regard to strategic projects aimed at achieving a greater degree of application and process orientation and the first signs of success are evident in our bottom line," says Matthias Schönberg, CEO of the SIMONA Group.

Although SIMONA is likely to exceed its forecast of consolidated revenue of €500 million and an EBIT margin of 6-8 per cent this year, the company also anticipates inflationary trends, supply-side shortages and subdued investment demand in the near future.

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SIMONA - Global Thermoplastic Solutions SIMONA AG is one of the leading manufacturers of thermoplastic products, with production facilities and sales offices around the globe, as well as an acknowledged development partner within this field. The company's portfolio includes semi-finished products (sheets, rods, profiles, welding rods), pipes and fittings. SIMONA employs approx. 1,500 people worldwide. The Group manufactures 35,000 products in Germany and abroad, offering best-in-class solutions tailored to a wide range of applications: in the chemical processing industry, in the water, energy and commodities supply sector as well as in the field of mobility, construction and environmental technology. Annual production exceeds 130,000 tonnes. SIMONA AG is a stock corporation listed in the General Standard. The company's registered office is in Kirn, Rhineland-Palatinate (Germany). For further information, please refer to www.simona.de.

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Simona AG published this content on 27 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2021 05:07:10 UTC.

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