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.

Owing to the difficult framework conditions, the company is witnessing a tangible weakening of the consumption climate in Europe. The forecast for the year as a whole in 2022 (sales between € 730 million and € 750 million and EBIT between € 55 million and € 65 million) is therefore expected to be achieved only at the lower end of the range, at least as far as earnings are concerned. This forecast is also based on the assumption that all the requirements of industry in Europe for gas are met in full.

 “The first half year of 2022 was beset by exceptionally unusual and challenging framework conditions. EBIT of € 33.5 million is still good but the second half year will become significantly more difficult. The forecast can only be achieved if German and European industry can be seamlessly supplied with energy,” commented Wolfgang Moyses, Chairman of the Management Board of SURTECO GROUP SE.

You will find the report for the first half year of 2022 and other information about SURTECO GROUP SE on the Internet at www.surteco.com.

Important indicators of SURTECO GROUP SE (in € million)

1. Difference to balance of segment earnings due to internal clearing
2. Based on a number of shares amounting to 15,505,731
3. Net financial debt to Equity

Contact:

Profile of SURTECO

SURTECO GROUP SE with registered office in Buttenwiesen is a mid-sized holding company with international operations. The company listed on the stock exchange combines leading national and international brands for surface technology under one roof. The comprehensive product portfolio includes papers printed with decor designs, impregnated materials, release papers, decorative flat foils and edgebandings based on specialist technical papers and plastics. This portfolio is complemented by skirtings made of plastics, technical extrusions (profiles) for industry, and roller shutter systems. With more than 3,000 employees at 22 production sites worldwide, the Group generates annual sales of around EUR 757 million in fiscal year 2021. 25 % of these sales are generated in Germany, 47 % in European countries outside Germany and a further 28 % in America, Asia and Australia. Customers of the SURTECO Group primarily come from the wood-based, flooring and furniture industries, as well as from interior design.

The shares in SURTECO GROUP SE are listed on the official market (Prime Standard) of the Frankfurt and Munich Stock Exchanges under the ticker symbol SUR and ISIN DE0005176903. They are also traded on the stock markets in Berlin, Düsseldorf and Stuttgart.

Cautionary note regarding forward-looking statements

This press release may contain statements of future forecasts or expectations and other forward-looking statements and involves known and unknown risks and uncertainties. There is therefore no guarantee for the statements and expectations expressed herein. The actual results and developments may differ substantially. The company assumes no obligation to update any forward-looking statements contained herein or to adapt such information to future results or developments.