Revenue and sales volume up in the first nine months
Financial Press Releases
Demand within the chemical and mechanical engineering industries remains sluggish in the EMEA region. Benefiting from buoyant project-based business relating to infrastructure and aquaculture applications, the region as a whole nevertheless achieved above-average revenue growth in the first nine months of the year. In the region covering the Americas, revenue was down amid persistently low demand for construction and leisure applications, a situation compounded by the weaker US dollar. Revenue also trended lower in Asia-Pacific as a result of currency and economic developments in China.
Subdued demand in the industrial sector was reflected in the markets for specific applications. While the Group recorded growth in the volume-driven project business of its Infrastructure business line and in connection with global fish farming projects, it was faced with declines in the Industry, Advertising & Building, and Mobility business lines.
The SIMONA Group is not satisfied with its earnings performance in the first nine months of the year. At 6.0%, the Group's EBIT margin was at the lower end of the guidance range. Against the backdrop of persistently strong pressure on margins amid intense competition, higher staff costs, and more pronounced freight and packaging costs as a result of higher sales volumes, earnings were adversely affected in the period under review.
"2025 remains a challenging year for SIMONA. Global demand within the industrial sector is slack. Geopolitical crises are impacting on industry-specific investment activity, which is of particular importance to our business. Thanks to our broad positioning at both regional and market level, we nevertheless performed well and succeeded in expanding our sales volume in the first nine months. At the same time, however, intense competition has been squeezing sales prices and exerting more pressure on margins. As a result, revenue grew only slightly, while EBIT stood at the lower end of our guidance. The renewed flare-up of economic tension between the United States and China is not conducive to growth in the final quarter. On the basis of developments to date and against the backdrop of a subdued outlook, we are adjusting our Group revenue forecast from €610-620 million to €590-600 million. However, we remain committed to achieving Group EBIT of 6 to 8%," says Matthias Schönberg, CEO of SIMONA.
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SIMONA – Global Thermoplastic Solutions
SIMONA AG is one of the leading manufacturers of thermoplastic products, with production facilities and sales offices around the globe, as well as an acknowledged development partner within this field. The company's portfolio includes semi-finished products (sheets, rods, profiles, welding rods), pipes, and fittings. SIMONA employs close to 1,900 people worldwide. The Group manufactures 35,000 products in Germany and abroad, offering best-in-class solutions tailored to a wide range of applications in the fields of industry, infrastructure, mobility, building, advertising, and aquaculture. SIMONA AG is a stock corporation listed in the General Standard. The company's registered office is in Kirn, Rhineland-Palatinate (Germany). For further information, please refer to www.simona.de. Information on the Group's sustainability strategy can be found at sustainability.simona.de