EBIT and sales down in first quarter
In the first quarter of 2023, the Surteco Group’s sales of 205.7 million euros were 3 percent below the previous year’s figure of 213.0 million euros. As the acquired Omnova businesses only contributed to business for one month in the first quarter, this did not yet compensate for the sharp drop in demand compared with the prior-year quarter. Due to transaction costs arising from this acquisition, a higher personnel cost ratio and a lack of capacity utilization, earnings before interest and taxes (EBIT) fell by 62 percent to €7.6 million (previous year: €20.2 million). Net profit decreased by 73% to €3.6 million (previous year: €13.6 million). Earnings per share reached 0.23 euros, compared with 0.88 euros in the previous year.
Since fiscal year 2023, the Group has been managed for Europe and South America according to the segments Surfaces, Edgebands and Profiles, and according to the regional segments North America and Asia / Pacific. The acquired businesses of Omnova are allocated to the North America segment. The previous year’s figures are pro forma values. In the first quarter of 2023, for example, sales at Surfaces fell by 12 percent to EUR 75.1 million, compared with EUR 85.0 million in the previous year. EBIT slipped to €-0.3 million (previous year: €6.2 million). Edgebands generated sales of 39.8 million euros, compared to 48.4 million euros in the previous year, and EBIT of 5.3 million euros, compared to 6.7 million euros. At €39.1 million, sales at Profiles were 6 percent down on the previous year (€41.7 million). At €4.6 million, EBIT decreased moderately compared to the previous year’s figure of €5.0 million. Due to the first sales of the Omnova business units, business in the North America segment increased by 62 percent to €38.9 million (previous year: €24.0 million). Due to non-recurring acquisition expenses, EBIT amounted to €0.1 million (previous year: €2.1 million). In Asia / Pacific, sales fell by 9 percent to €12.7 million from €13.9 million in the previous year, and EBIT amounted to €2.1 million (previous year: €2.8 million).
Due to the current macroeconomic uncertainties and high inflation, demand is expected to remain subdued at least until the middle of the year. In this respect, the forecast from the 2022 Annual Report is confirmed. Accordingly, Group sales for the full year 2023 are expected to be in the range of 920 million euros to 950 million euros, and Group EBIT is expected to be in the range of 45 million euros to 55 million euros.
The quarterly report Q1-2023 as well as further information about Surteco Group SE can be found on the internet at www.surteco.com.