Kirn, 27 Oct. 2023. The SIMONA Group was again faced with a significant decline in revenue in the third quarter. Sluggish economic growth in Europe and the United States, coupled with lacklustre investment spending in the industrial sector, left their mark, with revenue falling by 21.5 per cent to €147.4 million (previous year: €187.8 million). Group revenue totalled €467.2 million in the first nine months of the 2023 financial year, 15.5 per cent less than in the same period a year ago (€553.1 million). Down by just 7.7 per cent compared to the previous year, earnings before interest and taxes (EBIT) held up well in the first nine months despite the decline in revenue. The Group's EBIT margin thus increased from 8.2 to 8.9 per cent, which is in excess of the forecast of 6-8 per cent. EBIT generated in the third quarter amounted to €15.8 million (previous year: €16.4 million; -3.7 per cent).

The SIMONA Group felt the effects of weak investment activity on the part of customers, particularly in the reporting regions covering EMEA and the Americas. This contrasted with a slight upturn in revenue in the Asia-Pacific region. Within the EMEA region as a whole, Germany, France, Italy and the Czech Republic in particular were affected by anaemic demand.

Revenue was down in almost all business lines. Driven by buoyant sales in the area of aircraft interiors and rail vehicles, the Mobility business line managed to buck the general trend and expand its revenues. The Industry business line was impacted by a further slowdown within the chemical process industry in EMEA and the Americas, while Asia recorded slight growth on the back of solid semiconductor business. The Infrastructure business line felt the reluctance within the public sector to commission projects. The Advertising & Building business line had to contend with a significant downturn. Project business relating to equipment for fish farms was brought to a sudden standstill following the announcement of a tax on fish farms in Norway.

Despite the significant decline in revenue, the Group recorded strong earnings in the first three quarters of the 2023 financial year. Underpinned by a higher gross profit margin, EBIT stood at €41.6 million (previous year: €45.1 million). This represents a year-on-year decline of 7.7 per cent. Due to the more pronounced decline in revenue, the EBIT margin rose from 8.2 to 8.9 per cent.

"SIMONA felt the effects of the sluggish global economy and weaker investment activity in the first nine months of the year, particularly within the chemical process industry. Sales volumes and revenue were down markedly. One exception is the Asia-Pacific region, where we have now laid the foundation for further growth with the opening of a new plant in China. Operating within this difficult business environment, we managed to increase our margin. Against this backdrop, we are very satisfied with our earnings performance. Regrettably, we do not anticipate any market recovery in EMEA and the Americas in the final months of the year. As regards Asia-Pacific, on the other hand, we are confident that we will maintain our growth trajectory and fill the extra capacity created by the construction of the new plant. Based on the performance in the first nine months and our expectations for the fourth quarter, we anticipate that our revenue guidance of €610-630 million will only be achieved at the lower end of the scale. By contrast, our earnings guidance of 6-8 per cent should be achievable at the upper end," said 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 approx. 1,750 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. Annual production exceeds 150,000 tonnes. 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.

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