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SURTECO GROUP SE: Sales above previous year; cost of raw materials depresses margin

DGAP-News: SURTECO GROUP SE / Key word(s): Half Year Results SURTECO GROUP SE: Sales above previous year; cost of raw materials depresses margin 29.07.2022 / 07:30 The issuer is solely responsible for the content of this announcement. SURTECO GROUP SE: Sales above previous year; cost of raw materials depresses margin

• Group sales increase by 10 % to € 415.1 million
• EBIT margin at 8 % and in absolute terms at € 33.5 million
• Economic environment continues to deteriorate

Buttenwiesen, 29 July 2022 – SURTECO GROUP SE, holding company for leading national and international brands of surface technology, succeeded in increasing sales revenues in the first half year of 2022 in spite of a tangible slowdown in demand. Primarily due to price effects from passing on the exceedingly high raw materials prices, sales increased by 10 % to € 415.1 million compared with the previous half year. In conjunction with higher other operating expenses, the increased cost of materials nevertheless exerted pressure on profit margins, although the company was still able to maintain direct energy costs at a stable level. Hence, earnings before financial result and income tax (EBIT) at € 33.5 million were 14 % below the year-earlier value. Consolidated net profit amounted to € 22.5 million after € 25.7 million in the previous year.

All segments in the group succeeded in increasing their sales revenues. Decoratives – the biggest segment in the Group – increased sales from € 274.5 million in the previous year to € 297.3 million in the first half year of 2022. EBIT amounted to € 29.1 million after € 33.3 million in the previous year. Technicals achieved sales of € 39.9 million (2021: € 36.2 million). EBIT came down to € 1.7 million (2021: € 3.2 million). Profiles succeeded in bucking the pressure on margins owing to an ongoing robust market environment in the building sector and improved sales in the first half year of 2022 to € 77.9 million (2021: € 67.3 million) and EBIT to € 9.1 million (2021: € 6.6 million) in the first half of 2022.