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DGAP-News: Ringmetall SE / Key word(s): Half Year Report/Half Year Results
Ringmetall achieves earnings multiplication in the first half-year through efficiency and demand increases
Munich, 16 September 2021 - Ringmetall SE (ISIN: DE000A3E5E55), a leading international specialty supplier in the packaging industry, today published its interim report on business development in the first half of 2021. In addition to a noticeable increase in demand, especially in the product area of drum closure systems, efficiency enhancement measures led to a significant increase in profitability in the company.
As a result, consolidated revenues increased by 25.6 percent to EUR 72.3 million in the first half of the year (H1 2020: EUR 62.3 million). The increase is mainly attributable to a significant rise in steel prices, but also to a considerable extent to increased demand. The revenue contribution of Hosto Stolz GmbH & Co. KG, which was consolidated for the first time as of 31 May, had only a minor impact on the increase. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by a significantly disproportionate 74.0 percent to EUR 11.3 million (H1 2020: EUR 6.5 million) as a result of the efficiency enhancement measures implemented in recent months and exchange rates that developed in the company's favor - particularly between the US dollar and the euro. Accordingly, the EBITDA margin also increased significantly to 14.3 percent, compared to 10.3 percent in the previous year. Despite a significantly higher income tax expense, net profit thus multiplied to EUR 6.0 million (H1 2020: EUR 1.8 million).
Looking separately at the effects of raw material price development, inorganic and organic growth, the following effects on segment sales were seen in the first half of 2021:
The key figures for business development in the first half of 2021 are as follows on a preliminary basis:
* Temporary staff are reported under personnel expenses rather than under cost of materials, as this is more in line with the Group's economic approach.
Sales in the Industrial Packaging segment were driven above all by rising demand for drum closure systems. Since the beginning of the year, there has been continuous growth in almost all sales regions, resulting on the one hand from steel price-related price increases and on the other hand from an overall increase in volumes. At the same time, exchange rate effects increased revenues. The performance of the inliner product group was still subdued for much of the first half of the year. However, the end of the second quarter saw a revival of business here as well. As a result, segment revenue increased by a total of 27.1 percent to EUR 72.3 million (H1 2020: EUR 56.9 million), while segment EBITDA rose by a significantly disproportionate 70.3 percent to EUR 12.6 million (H1 2020: EUR 7.4 million) due to the aforementioned efficiency improvements. The integration of the HOSTO acquisition, which was consolidated for the first time as of 31 May 2021, is proceeding according to plan in terms of both operations and costs.
In the Industrial Handling Segment, the second quarter saw a clearly noticeable turnaround in the demand situation for the company's products, which had been subdued for a long time, and has remained at a high level in the third quarter to date. Demand increased here both in the area of product solutions for industrial trucks and in the area of product solutions for the agricultural machinery sector. Accordingly, segment revenue increased by 11.1 percent to EUR 6.0 million (H1 2020: EUR 5.4 million) while segment EBITDA multiplied to EUR 0.7 million (H1 2020: EUR 0.2 million). In this segment, too, the Management Board expects a sustained positive development in the second half of the year.
In view of the unchanged high dynamics in the business development, the Management Board of Ringmetall SE has raised its forecast for the expected business development in the full year 2021 with the publication of the preliminary half-year figures. Consolidated revenues of between EUR 150 and 160 million (previously: EUR 135 to 145 million) and EBITDA of between EUR 17 and 19 million (previously: EUR 13 to 15 million) are now expected. The adjusted forecast includes the effects expected for the first nine months of 2021 from changes in raw material prices and in the exchange rates of the euro to the US dollar, the Turkish lira and the British pound compared with the end of the year. Also included are effects expected to date from the acquisition of HOSTO. For the fourth quarter of 2021, possible effects from changes in raw material prices, the aforementioned exchange rates and possible further acquisitions are explicitly not included in the adjusted forecast.
About the Ringmetall Group
Ringmetall is a leading international specialist supplier in the packaging industry. The Industrial Packaging division offers highly secure sealing and closure systems for the chemical, petrochemical, pharmaceutical and food 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, Great Britain, France, Spain, Italy, Turkey, the Netherlands as well as China and the USA. Ringmetall generates annual revenues of around EUR 140 million worldwide.
16.09.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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