Adjustment of the forecast for 2023

Surteco Group SE announces the adjustment of the forecast for the financial year 2023. Preliminary sales for the first half of 2023 are 428 million euros (1 HY 2022: 415 million euros) and preliminary EBIT (earnings before financial result and taxes) is 7.6 million euros (1 HY 2022: 33.5 million euros).

The main reasons for the decline in earnings are a persistently difficult market environment in Europe and North America, one-time costs in connection with the Omnova acquisition, and the purchase price allocation. The company has initiated countermeasures which, however, are unlikely to be sufficient to achieve the original EBIT forecast of 45 to 55 million euros for 2023. These measures will lead to additional one-time restructuring expenses in the second half of 2023. In this respect, EBIT in the range of 20 to 30 million euros is now expected for fiscal 2023. EBIT adjusted (adjusted for acquisition and integration costs, the purchase price allocation (PPA) from the acquisition of the Omnova businesses and costs from the restructuring program) is expected to be in the range of 45 to 55 million euros.

All measures are expected to lead to a sustainable EBIT of more than 60 million euros and EBITDA (earnings before interest, taxes, depreciation and amortization) of more than 110 million euros before special items from fiscal 2024 onwards.

Due to continued weak demand, Group sales in fiscal 2023 will also be slightly below the original forecast of EUR 920 to 950 million.