EQS-News

SIMONA 2023: Strong profitability – Marked decline in sales volume and revenue - Seite 2

Sustainability
SIMONA took a determined approach to implementing its sustainability strategy. This included the launch of a sustainable product line featuring bio-based, biocircular or recycled raw materials under the "EcoPlastIQ" brand. SIMONA's "Commitment" status relating to the Science-Based Targets initiative underpins the Group’s ambitions for reducing CO2 emissions. By sourcing wind power, the plastics processing company will be able to cover up to 50 per cent of its electricity requirements at its German sites as from 2025.

The SIMONA Group is very satisfied with its earnings performance in the financial year just ended. In nominal terms, EBIT fell just slightly by 2.1 per cent from €54.1 million to €52.9 million. The EBIT margin stood at 8.8 per cent, which is above the previous year's figure (7.6 per cent) and above the Group's guidance (6-8 per cent). Against the backdrop of a significant decline in revenue, the Group’s solid earnings performance was driven by an improved cost-of-materials ratio and lower variable expenses. Thus, the dividend proposal to be submitted to the Annual General Meeting remains unchanged year on year at €1.85 per share.

The headcount totalled 1,757 at the end of the year (previous year: 1,734). Staffing levels were up slightly in the Asia-Pacific region due to the expansion of production, while they trended downwards in EMEA.

SIMONA anticipates that Group revenue for the 2024 financial year will be between €620 and 640 million, while the EBIT margin is expected to be between 6 and 8 per cent and the EBITDA margin between 10 and 12 per cent. The revenue forecast takes into account projected growth in sales volumes in conjunction with price declines due to persistently weak demand, particularly in Europe’s industrial sector.

Despite a recovery in order intake – particularly in EMEA – the SIMONA Group had to contend with a further decline in revenue and earnings in the first quarter of 2024. This was attributable to a change in the product mix, lower sales prices and pressure on margins. Revenue declined by 11.6 per cent to €145.9 million (previous year: €165.0 million). EBIT fell by 28.6 per cent to €9.4 million (previous year: €13.2 million). The EBIT margin stood at 6.4 per cent, compared to 8.0 per cent in the same period of the previous year.