EQS-News

SIMONA 2023: Strong profitability – Marked decline in sales volume and revenue

EQS-News: SIMONA Aktiengesellschaft / Key word(s): Annual Report/Quarterly / Interim Statement SIMONA 2023: Strong profitability – Marked decline in sales volume and revenue 24.04.2024 / 15:57 CET/CEST The issuer is solely responsible for the content of this announcement.

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EBIT close to prior-year record – Group revenue down 16% on the back of sluggish global economy – Muted start to 2024

Kirn, 24 April 2024. In what proved to be a dynamic year, the SIMONA Group recorded solid earnings against the backdrop of difficult global economic conditions. Group revenue fell by 15.7 per cent to €600.0 million amid weak demand. However, at €52.9 million, earnings before interest and taxes (EBIT) were only just below the record level posted in the previous year (€54.1 million). The EBIT margin rose to 8.8 per cent (previous year: 7.6 per cent). SIMONA’s endeavours in the first three months of 2024 fell short of the strong performance seen in the same quarter of the previous year. Despite this, the Group’s outlook for 2024 as a whole remains positive.

Revenue by region
At €600.0 million, SIMONA fell just short of its revenue guidance of €610-630 million presented in the first-half report. An anaemic global economy left its mark on sales volumes and revenues in all regions served by the Group. In the EMEA region, the economic downturn affected the majority of markets, prompting an above-average decline in revenue of 19.2 per cent to €369.3 million (previous year: €456.9 million). In the Americas, SIMONA was able to exploit the global surge in travel to boost its aircraft interiors business, while sales in the industrial, construction and leisure sectors suffered. Overall, revenue in the Americas fell by 13.4 per cent to €179.3 million (previous year: €207.1 million). The Asia-Pacific region recorded growth in revenue driven by a strong performance in China and India. Revenue from sales in this region rose by 6.9 per cent from €48.1 million to €51.4 million.

Revenue by business line
Almost all business lines saw a downturn in revenue in 2023, with the exception of the Mobility business line. It grew by 10.3 per cent to €77.9 million (previous year: €70.6 million) thanks to greater buoyancy within the aviation business and the first large-scale orders relating to train interiors and battery enclosures for electric buses, which are new markets for SIMONA. The Industry business line was impacted by a sluggish performance of the global chemicals business, with growth limited to the Semicon market segment. In total, the Industry business line generated revenue of € 227.5 million (previous year: €266.0 million), which corresponds to a year-on-year decline in revenue of 14.5 per cent. The Infrastructure business line, whose core market is pipeline rehabilitation and cable protection in the EMEA region, experienced a lack of project business due to restrained public-sector spending. Revenue in the Infrastructure business line fell by 15.8 per cent to €103.0 million (previous year: €122.3 million). The downturn within the Advertising & Building business line was attributable to waning activity in the construction sector, with revenue totalling €87.8 million (previous year: €111.3 million). This corresponds to a decline of 21.2 per cent. "Others" encompasses SIMONA's trading and aquaculture business, among other things. Having lost momentum in the months leading up to the end of 2023 due to the proposal of a special tax to be levied in Norway, the market for equipment used in fish farms is now picking up speed again. Overall, revenue generated in "Others totalled €103.9 million (previous year: €141.8 million).