UK Markets closed

Ringmetall marks further revenue and earnings record despite generally difficult environment

EQS-News: Ringmetall SE / Key word(s): 9 Month figures/Quarterly / Interim Statement
Ringmetall marks further revenue and earnings record despite generally difficult environment
02.11.2022 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

Ringmetall marks further revenue and earnings record despite generally difficult environment

- Group revenue up 34.7 percent to EUR 170.3 million
- EBITDA rises slightly less than proportionately by 24.9 percent to EUR 24.2 million
- Generally difficult environment noticeable, but still manageable; outlook confirmed

Munich, 2 November 2022 - Ringmetall SE (ISIN: DE000A3E5E55), a leading international specialist supplier in the packaging industry, continues to come through the generally difficult economic environment very well overall. Although the course of business in individual regions was certainly marked by noticeable headwinds, the company also achieved new record figures in revenue and earnings in the first nine months of the year.

Group revenue increased by 34.7 percent to EUR 170.3 million in the first nine months (9M 2021: EUR 126.4 million). There were significant differences in the business performance of the individual product groups. While the clamping rings product area had to pay tribute to a generally faltering economic development in individual sales regions, the inliner product area and the Industrial Handling segment benefited from a consistently robust and rising demand. Earnings before interest, taxes, depreciation and amortization (EBITDA) recorded an increase of 24.9 percent to EUR 24.2 million (9M 2021: EUR 19.4 million). The reasons for the disproportionately low increase compared to revenue growth are primarily the changed product mix in the third quarter, but also price adjustments against the backdrop of increased costs, which by definition are passed on to the customer without a margin. Accordingly, the EBITDA margin in relation to total operating performance of 14.0 percent showed a healthy return to the target corridor (9M 2021: 15.2 percent).

"Even in the general crisis environments of recent years, it has been shown time and again that the now very balanced product mix of our company regularly leads to temporary weaknesses in one sales region or product group being largely compensated for by increasing demand in other regions and products," emphasizes Christoph Petri, Spokesman of the Executive Board of Ringmetall SE, with regard to the business development. "And Ringmetall, of course, is also feeling the effects of the global imbalance in the economic cycle. Overall, however, we feel well prepared for fluctuating developments. In addition, global megatrends and our increasing company size mean that we are just not as susceptible to fluctuations in demand as we were a few years ago. "

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: +22.3 percent
- Effect of company acquisitions on segment sales: +18.1 percent
- Effect of organic business development on segment sales: -5.5 percent

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

IFRS, in EUR ´000

9M 2022

9M 2021

∆ [abs.]

∆ [%]

Group revenue

170,262

126,412

43,850

34.7%

Total output (GL)

172,909

127,610

45,299

35.5%

Gross profit

73,661

59,920

13,741

22.9%

EBITDA

24,203

19,373

4,830

24.9%

EBITDA margin (on GL)

14.0%

15.2%

 

 

EBIT

18,717

14,691

4,026

27.4%

EBIT margin (on GL)

10.8%

11.5%

 

 

In the Industrial Packaging segment, the third quarter saw the effects of a fluctuating economic environment on the clamping rings product area in individual sales regions. This primarily affected European sites, while demand in the USA remained largely stable. By adjusting capacity, the Group companies affected succeeded overall in adapting their cost structures to the fall in demand. By contrast, demand in the inliner product area received a noticeable boost, recording double-digit percentage growth in the third quarter and compensating for a significant part of the decline in earnings in the ring business. The increase in demand was felt in all product groups. However, increased demand for bag-in-box systems again made a major contribution to the volume growth. Revenue in the Industrial Packaging segment increased by 34.9 percent to EUR 158.3 million (9M 2021: EUR 117.3 million), while segment EBITDA rose by 14.7 percent to EUR 25.4 million (9M 2021: EUR 22.1 million).

Demand in the Industrial Handling Segment continued to develop positively. Here, the company continues to benefit from an increasing relocation of production processes from Asian countries back to Europe and is recording a steady increase in incoming orders. Accordingly, segment revenue again increased significantly by 31.4 percent to EUR 11.9 million (9M 2021: EUR 9.1 million). Earnings development was still characterized by inefficiencies against the backdrop of the need to rapidly expand production capacities. Overall, however, the situation in this respect has been improving continuously since the onset of this pronounced special economic situation. Segment EBITDA grew by 22.6 percent to EUR 1.2 million (9M 2021: EUR 0.9 million).

In detail, segment performance in the reporting period was as follows:

IFRS, in TEUR

9M 2022

9M 2021

∆ [abs.]

∆ [%]

Industrial Packaging

 

 

 

 

Sales

158,314

117,320

40,994

34.9%

Total output (GL)

160,199

118,372

41,827

35.3%

EBITDA

25,381

22,133

3,248

14.7%

EBITDA margin (on GL)

15.8%

18.7%

 

 

Industrial Handling

 

 

 

 

Sales

11,948

9,093

2,855

31.4%

Total output (GL)

12,711

9,237

3,474

37.6%

EBITDA

1,155

942

213

22.6%

EBITDA margin (on GL)

9.1%

10.2%

 

 

Against the background of the current business development in the third quarter and the foreseeable business development in the fourth quarter, the Executive Board of Ringmetall SE is maintaining its forecast unchanged. This assumes a Group revenue of between EUR 205 and 225 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of between EUR 26 and 32 million.

Details on the business development in the first nine months of 2022 will be discussed by the Executive Board today at 11:00 a.m. CET during 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 sales of around 220 million euros per year.

 


02.11.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com

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:

1476079


 

End of News

EQS News Service

show this
show this