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Increased demand for inliners and in industrial handling brings Ringmetall further leap in growth in the second quarter

·7-min read

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
15.09.2022 / 07:20 CET/CEST
The issuer is solely responsible for the content of this announcement.

Increased demand for inliners and in industrial handling brings Ringmetall further leap in growth in the second quarter

  • Group revenues up significantly by 47.2 percent to EUR 115.3 million

  • EBITDA grows disproportionately to EUR 17.3 million, partly due to special effects

  • Industrial Handling benefits noticeably from new trend towards deglobalization

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: ­­­­­­­­­

  • Effect of raw material price development on segment sales: +29.2 percent

  • Effect of company acquisitions on segment sales: +17.5 percent

  • Effect of organic business development on segment sales: +2.0 percent

The key figures for business development in the reporting period are as follows:

IFRS, in TEUR

H1 2022

H1 2021

∆ [abs.]

∆ [%]

Group revenues

115,251

78,289

36,962

47.2%

Total output (GL)

117.528

79.070

38,458

48.6%

Gross profit

49,548

37,369

12,179

32.6%

EBITDA

17,341

11,302

6,039

53.4%

EBITDA margin (on GL)

14.8%

14.3%

 

 

EBIT

13,862

8,212

5,650

68.8%

EBIT margin (on GL)

11.8%

10.4%

 

 

Consolidated net income for the period

10,508

6,000

4,508

75.1%


Revenues in the Industrial Packaging segment were again significantly impacted by the sharp rise in raw material prices, mainly steel and plastic granules.  On the other hand, the acquisitions HOSTO and Rhein-Plast also developed much better than expected. Overall, segment revenues increased by 48.7 percent to EUR 107.4 million (H1 2021: EUR 72.3 million). In the clamping rings product area, volumes in the European market decreased slightly, while they continued to increase in the North American market. Overall, sales volumes thus stagnated slightly above the level of the previous year following a significant increase in the previous quarters. There was a significant recovery in sales volumes in the inliner product area, which had recently seen rather subdued demand due to the pandemic. Here it was mainly beer tank inliners and bag-in-box systems where sales picked up noticeably. Segment EBITDA increased by 39.7 percent to EUR 18.0 million (H1 2021: EUR 12.9 million).

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:

IFRS, in TEUR

H1 2022

H1 2021

∆ [abs.]

∆ [%]

Industrial Packaging

 

 

 

 

Revenues

107,432

72,271

35,161

48.7%

Total output (GL)

109,057

73,009

36,048

49.4%

EBITDA

17,956

12,854

5,102

39.7%

EBITDA margin (on GL)

16.5%

17.6%

 

 

Industrial Handling

 

 

 

 

Revenues

7,819

6,018

1,801

29.9%

Total output (GL)

8,471

6,061

2,410

39.8%

EBITDA

702

748

-46

-6.1%

EBITDA margin (on GL)

8.3%

12.3%

 

 

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 (brabec@ringmetall.de).

For more information on the Ringmetall Group and its affiliated subsidiaries, please visit www.ringmetall.de.

Contact:

Ingo Middelmenne
Investor Relations
Ringmetall SE
Phone: +49 (0 )89 45 220 98 12
Mobile: +49 (0 )174 90 911 90
Email: middelmenne@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.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language:

English

Company:

Ringmetall SE

Innere Wiener Str. 9

81667 Munich

Germany

Phone:

089 / 45 22 098 - 0

Fax:

089 / 45 22 098 - 22

E-mail:

info@ringmetall.de

Internet:

www.ringmetall.de

ISIN:

DE000A3E5E55

WKN:

A3E5E5

Listed:

Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange

EQS News ID:

1442209


 

End of News

DGAP News Service

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