Kirn, 2 August 2023. The SIMONA Group generated sales revenue of €319.8 million in the first half of 2023, 12.4 per cent less than in the same period a year ago (€365.2 million). The year-on-year downturn was attributable mainly to lower sales prices in the wake of tumbling commodity prices around the globe as well as declining sales volumes. The second quarter of 2023 produced sales revenue of €154.8 million, which corresponds to a year-on-year decline of 19.4 per cent (previous year: €192.0 million). Despite the contraction in revenue, the Group's earnings performance at an operating level was good. Earnings before interest and taxes (EBIT) amounted to €25.8 million after €28.7 million in the same period last year. The EBIT margin rose slightly in the first half, up from 7.9 to 8.1 per cent. In view of the global economic slowdown and low propensity to invest, the SIMONA Group has scaled back its revenue guidance from formerly €650-675 million to €610-630 million but remains committed to achieving an EBIT margin of 6-8 per cent.

Revenue developed along divergent lines in the various sales regions around the globe. In the EMEA region, waning demand in almost all fields of application prompted an above-average downturn in revenue of 16.3 per cent to €199.2 million (previous year: €238.1 million). Having remained stable in the first quarter, the Americas saw a decline in business volume in the second quarter, particularly in the area of Industrial Products and Outdoor & Leisure. In total, revenue fell by 7.0 per cent to €95.2 million in the first six months (previous year: €102.3 million). Revenue from sales in the Asia-Pacific region remained solid at €25.4 million (previous year: €24.8 million) on the back of robust industrial products business.

The majority of application areas were hit by declining revenue in the first half of the year. The Industry business line generated revenue of €123.5 million (previous year: €138.3 million), a year-on-year decline of 10.7 per cent, which was mainly due to sluggish demand within the chemical process industry. The Advertising & Building business line achieved revenue of €45.2 million (previous year: €55.9 million), a decline of 19.1 per cent. Revenue generated by the Infrastructure business line amounted to €56.0 million in the first half of the year, largely unchanged on the prior-year figure (€56.6 million; -1.1 per cent). Fuelled by resurgent aircraft interiors and automotive business, revenue generated within the Mobility business line was up by 8 per cent, taking the figure to €39.4 million (previous year: €36.4 million). The remaining revenues from various other fields of application and trade amounted to €55.7 million (previous year: €78.0 million).

The SIMONA Group is satisfied with earnings before interest and taxes (EBIT) generated in the first half of the year, which amounted to €25.8 million, compared to €28.7 million in the previous year. At 8.1 per cent, the EBIT margin was slightly up on the prior-year figure (7.9 per cent). This was driven to a large extent by another significant boost to earnings in the Americas, which was attributable in part to an improved product mix. In the EMEA region, meanwhile, EBIT declined sharply. Due to exchange rate factors in particular, the Asia-Pacific region also saw a downturn in EBIT.

"SIMONA clearly felt the effects of a lacklustre global economy in the first six months of the year. Against the backdrop of geopolitical risks, investment propensity within the industrial sector, an important factor for our business, is weak. Tumbling commodity prices are exerting downward pressure on our sales prices. In combination with anaemic demand, this has led to a significant contraction in revenue. Taking these developments into account, we are very satisfied with our earnings performance. Building on good price and product mix management, we were able to contain the decline in EBIT in absolute terms, while slightly expanding our EBIT margin. As for the second half of the year, we do not see any radical improvement in global demand in the core fields of application within the chemical process industry and the infrastructure sector. With this in mind, we are lowering our revenue guidance from formerly €650-675 million to €610-630 million. Based on our earnings performance to date, we are retaining our forecast of an EBIT margin of 6-8 per cent," says Matthias Schönberg, CEO of SIMONA.