Kirn, 5 Aug. 2020. The SIMONA Group generated sales revenue of €199.4 million in the first half of the financial year, 12.4 per cent less than in the same period a year ago (€227.5 million). The adverse effects of the coronavirus pandemic were clearly visible in the second quarter. Revenue declined by 21.3 per cent to €91.7 million (prev. year: €116.5 million); business within the aviation market bore the brunt of the downturn. In the first quarter, revenue had remained relatively stable with a decline of 3 per cent, taking the figure to €107.7 million (prev. year: €111.0 million). Against the backdrop of a significant downturn in revenue, the SIMONA Group  is  satisfied  with  its  earnings  performance.  Earnings  before  interest  and  taxes (EBIT) amounted to €14.6 million (prev. year: €18.1 million). The EBIT margin was 7.3 per cent (prev. year: 8.0 per cent).

SIMONA managed to stand its ground in Europe, where the downturn in revenue was restricted to just 7.9 per cent in the first half. This was attributable to stability within the area of pipes and fittings as well as higher revenue from transparent PETG sheets used as partitions in order to meet hygiene and social distancing requirements. Sales revenue in  Europe  totalled  €131.0  million,  compared  to  €142.3  million  in  the  previous  year.  Revenue from sales in North America declined by 20.3 per cent to €55.7 million in the first half of the year (prev. year: €69.8 million). Above all, the Group's business within theaviation market – centred around sheet products for aircraft interiors –suffered from the near-total  collapse  of  the  aviation  industry.  The  region  covering  Asia  and  Pacific  recorded sales revenue of €12.7 million (prev. year: €15.4 million). China was particularly hard hit in the first quarter, which was followed by a slight recovery in the second quarter.

Good EBIT margin – solid financial situation

In the first half of the year, the Group recorded EBIT of €14.6 million (prev. year: €18.1 million).  EBITrose  markedly  in  Europe,  whereas  the  United  States  saw  a  substantial  decline in this key financial indicator. The EBIT margin stood at 7.3 per cent, compared to 8.0 per cent for the same period a year ago. EBITDA amounted to €23.5 million (prev. year: €26.6 million). The EBITDA margin remained largely unchanged at 11.8 per cent. The Group's position in terms of liquidity remains solid. At €69.2 million, cash and cash equivalents were up slightly compared to 31 December 2019. The equity ratio stands at 48 per cent.

Staffing levels stable –large proportion of vocational trainees

As  at  30  June  2020,  the  SIMONA  Group  employed  1,406  people.  SIMONA  has  so  far  been  able  to  successfully  respond  to  the  COVID-19  crisis  by  bringing  forward  the  company's annual leave and reducing overtime and vacation as well as making partial use of short-time work without having to adjust staffing levels. Even in times of upheaval, the proportion of vocational trainees at the plastics processing company remains at the same high level as in the previous year.

Application-oriented   business   strengthened   by   acquisition   in   the   field   of   aquaculture

Effective from 1 July 2020, SIMONA – as announced – acquired a 75 per cent interest in Stadpipe AS, Norway, and initiated measures to integrate the entity. The company plans, produces  and  installs  plastic  piping  systems  for  fish  farms  with  a  team  of  around  50  employees.   The   focus   is   on   the   promising   market   of   onshore   plants.   Stadpipe complements  and  extends  SIMONA's  product  range.  The  company  will  continue  to  operate independently within the market, trading as SIMONA Stadpipe. In future, it will be the only supplier to offer a range consisting not only of sheets but also of pipes and fittings for the aquaculture market.

Uncertain outlook for second half

"SIMONA has come through the current crisis in good shape so far. We were quick to chart  a  favourable  route:  we  streamlined  costs,  made  flexible  use  of  opportunities  to  reduce holiday and leisure time accounts and kept our core team. Against the backdrop of this historic global crisis, we are very satisfied with EBIT achieved in the first half of the year. We are consistently pursuing our strategic goals of greater application and process orientation  even  during  the  COVID-19  crisis.  This  is  illustrated  by  the  acquisition  of  Stadpipe," says Matthias Schönberg, CEO of the SIMONA Group. "It is not possible to make  a  reliable  forecast  for  the  year  as  a  whole  due  to  the  significant  uncertainties surrounding economic performance in the second half of the year. Too much depends on the  further  course  of  the  pandemic;  recently,  the  number  of  cases  has  risen  again  worldwide. We will not achieve our original target of Group revenue of €430-440 million. In recording an EBIT margin of 7.3 per cent in the first half of the year, we have created a  solid  foundation  for  a  satisfactory  bottom-line  result  in  the  financial  year  as  a  whole.  However, it remains to be seen whether we can achieve our targeted margin of 6-8 per cent," says Schönberg.