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DGAP-News: SURTECO GROUP SE / Key word(s): Annual Report/Quarterly / Interim Statement
SURTECO GROUP SE: Strong start to the year in the first quarter of 2021 with sales growth of 10 % and increase in earnings of 61 % compared with the previous year in spite of significantly increased cost of materials and procurement bottlenecks.
- Sales revenues for 2020 are 3 % below the year-earlier figure after adjustment for company divestment and foreign exchange rate effects. Earnings for 2020 are significantly above previous years.
- Dividend payout of € 0.80 planned for 2020.
- Group sales for 2021 anticipated to increase to between € 650 and 675 million. EBIT is anticipated in corridor between € 47 and 52 million.
Buttenwiesen, 30 April 2021 - The sales of the SURTECO Group at € 627.0 million in the business year 2020 were below the year-earlier value of € 675.3 million. Adjusted by the North American impregnating business divested in 2019 and exchange rate effects, the fall in sales was only 3 %. In spite of the pandemic-related fall in Group sales, earnings before financial result and income tax (EBIT) adjusted for one-off effects in the business year 2019 improved from € 40.5 million to € 46.1 million in the business year 2020. Key factors for this were the successful implementation of the first phase of restructuring, lower cost of materials and the surprisingly good development of business during the fourth quarter. EBIT recognized in the previous year amounted to € 21.1 million. Net profit increased more than threefold from € 9.4 million to € 33.7 million. Against this background, the Management Board and the Supervisory Board will submit a resolution to the Annual General Meeting of SURTECO GROUP SE being held on 23 June 2021 proposing a payout of € 0.80 per share. This corresponds to a payout rate of 37 %. In the previous year, no dividend was paid on account of the coronavirus pandemic.
"Thanks to the huge efforts made by everybody in the company in 2020, SURTECO successfully overcame the massive effects of the coronavirus pandemic. In view of the recovering global economy, we will target significant sales growth in 2021 and an EBIT in the corridor between € 47 and 52 million," was the confident prediction of Wolfgang Moyses, Chairman of the Management Board of SURTECO GROUP SE.
Balance sheet quality continues to improve - free cash flow increases to € 52.0 million in 2020
In 2020, SURTECO improved an already robust balance sheet quality. Against the background of an increase in balance sheet total from € 780.3 million to € 798.8 million, the company posted an equity ratio of 46.7 % (2019: 45.4 %) on 31 December 2020. Net financial debt fell substantially from € 179.9 million to € 144.7 million, the gearing (level of debt) fell correspondingly from 51 % to 39 %. The significantly positive earnings development and focused investment activity ensured that the free cash flow increased from € 47.9 million to 52.0 million. This puts the balance sheet and the financial position of the Group on a very sound footing for the planned growth in future.
Outlook for 2021: Positive development in the first quarter justifies optimism for significant increase in sales and good earnings development
In the first quarter of 2021, SURTECO succeeded in continuing the good performance of the second half year in 2020. As a consequence, Group sales increased by 10 % to € 188.5 million (2020: € 171.6 million). In spite of significantly increased cost of materials and procurement bottlenecks, EBIT rose disproportionately from € 13.4 million to € 21.5 million on the back of efficiency improvements. Consequently, EBIT in the Segment Decoratives climbed from € 10.2 million to € 18.3 million and in the Segment Technicals from € 1.9 million to € 2.3 million. EBIT for the Segment Pprofiles amounted to € 3.1 million after € 3.4 million in the previous year.
In spite of an expected easing in demand during the second half of the year and the ongoing lack of certainty in relation to the coronavirus situation, the company is anticipating an increase in sales to between € 650 and € 675 million for the year overall in 2021. Group EBIT is expected in the corridor between € 47 and 52 million.
You will find the Annual Report for the year 2020 and other information about SURTECO GROUP SE on the Internet at www.ir.surteco.com.
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 627 million in 2020. 27 % of these sales are generated in Germany, 47 % in European countries outside Germany and a further 26 % 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.
(1) Since July 2019 without Sales from sold impregnation business
(2) Difference to balance of segment earnings due to internal clearing
(3) Based on a number of shares amounting to 15,505,731
(4) Proposal of Supervisory Board and Management Board
30.04.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
SURTECO GROUP SE
+49 (0)8274 99 88-0
+49 (0)8274 99 88-5 05
Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange
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