DGAP-News: Ringmetall SE / Key word(s): Half Year Results/Half Year Report
Increased demand for inliners and in industrial handling brings Ringmetall further leap in growth in the second quarter
Munich, 15 September 2022 - Ringmetall SE (ISIN: DE0006001902), a leading international specialty supplier in the packaging industry, continued to grow significantly in the second quarter. In addition to persistently high raw material prices and a continued positive business development of the latest corporate acquisitions, growth was primarily fueled by increased demand for inliners and the products of the Industrial Handling segment.
Group revenues increased by 47.2 percent to EUR 115.3 million in the first half of the year (H1 2021: EUR 78.3 million). While the growth in the previous quarters was mainly attributable to the clamping rings product area, the other product groups of the Group were increasingly responsible for the sustained growth in the second quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA) once again increased disproportionately by 53.4 percent to EUR 17.3 million (H1 2021: EUR 11.3 million). In addition to the positive operating development, this significant increase is attributable to the acquisition of Rhein-Plast. Against the backdrop of a so-called bargain purchase - i.e. a favorable purchase - there was a positive one-time special effect of EUR 1.2 million. Accordingly, the EBITDA margin in relation to total operating performance again reached a record level of 14.8 percent.
"In terms of the basic trend, the development in the second quarter is in line with our expectations. After the overheated market phase in the last quarters, a normalization is evident in the clamping ring segment, while demand for inliners is noticeably recovering after the last wave of pandemics," Christoph Petri, Spokesman of the Management Board of Ringmetall SE, comments on the development. "At the same time, the continuing business momentum exceeds our expectations overall. Our day-to-day business is proving to be so robust in the face of the numerous economic challenges that we can be more than satisfied with how our Group companies are coping with the current environment. However, we still have to assume that this positive trend will not easily continue in the months ahead. "
A separate analysis of the effects of raw material price developments, inorganic and organic growth showed the following effects on the Industrial Packaging segment:
The key figures for business development in the reporting period are as follows:
The Industrial Handling Segment recorded a significant surge in demand in the first half of the year. This shows that the segment can benefit from an emerging trend towards deglobalization, with large existing customers in particular placing additional orders with the business unit. Segment revenues consequently increased by 29.9 percent to EUR 7.8 million (H1 2021: EUR 6.0 million). While the surge in demand in the first quarter still led to an increase in scrap rates and thus a significant rise in costs due to a higher ratio of temporary workers, efficiency enhancement measures already resulted in a noticeably optimized cost situation in the second quarter. At EUR 0.7 million, EBITDA was correspondingly only 6.1 percent below the previous year (H1 2021: EUR 0.7 million) and is once again on a steady upward trend.
In detail, segment performance in the reporting period was as follows:
In the publication of 14 September, the company significantly raised its forecast for the development of revenues and earnings in the full year 2022. The Management Board of the Company came to this decision on the basis of the preliminary half-year figures, the preliminary business figures for the months of July and August, and the foreseeable business development in the month of September.
The adjusted forecast assumes consolidated revenues of between EUR 205 and 225 million (previously: EUR 180 to 200 million) and earnings before interest, taxes, depreciation and amortization (EBITDA) of between EUR 26 and 32 million (previously: EUR 22 to 27 million). In contrast to the original estimates for the development of the business area, the development of the clamping rings product area is only slightly weaker than the multi-year average. At the same time, however, the Inliner product area and the Industrial Handling business unit are developing much more dynamically than originally expected.
Details on the business development in the first half of 2022 will be discussed by the Management Board today at 4:00 p.m. CET in a conference call for analysts, institutional investors and journalists. To register for this, please contact Ms. Anja Brabec by e-mail (firstname.lastname@example.org).
For more information on the Ringmetall Group and its affiliated subsidiaries, please visit www.ringmetall.de.
About Ringmetall Group
Ringmetall is a leading international specialty supplier in the packaging industry. The Industrial Packaging business unit offers high-security closure systems and inner sleeves for industrial drums for the chemical, petrochemical, pharmaceutical, and food processing industries. The Industrial Handling Business Unit develops application-optimized vehicle attachments for handling and transporting packaging units. In addition to the Group headquarters in Munich, Ringmetall is represented by worldwide production and sales subsidiaries in Germany, France, Great Britain, Italy, the Netherlands, Spain, Turkey, as well as China and the USA. Worldwide, Ringmetall generates revenues of around EUR 220 million per year.
15.09.2022 CET/CEST Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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