SURTECO GROUP SE: Adjustment of the forecast for 2023 due to one-off special effects and continued weak demand

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SURTECO GROUP SE: Adjustment of the forecast for 2023 due to one-off special effects and continued weak demand

Buttenwiesen, 20 July 2023 - SURTECO GROUP SE announces the adjustment of the forecast for the business year 2023. Preliminary sales for the first half of 2023 amount to € 428 million (1 HY 2022: € 415 million) and preliminary EBIT (earnings before financial result and taxes) to € 7.6 million (1 HY 2022: € 33.5 million).

The main reasons for the decline in earnings are a persistently difficult market environment in Europe and North America, one-off costs in connection with the Omnova acquisition and the purchase price allocation. The company has initiated countermeasures, which, however, are unlikely to be sufficient to achieve the original EBIT forecast for 2023 of € 45 to 55 million. These measures will lead to additional one-off restructuring expenses in the second half of 2023. In this respect, EBIT in the range of € 20 to 30 million is now expected for the 2023 financial year. EBIT adjusted (adjusted for acquisition and integration costs, the purchase price allocation (PPA) from the acquisition of the Omnova business units and costs from the restructuring programme) is expected to be in the range of € 45 to 55 million.

All measures should lead to a sustainable EBIT of over € 60 million and an EBITDA (earnings before interest, taxes, depreciation and amortisation) of over € 110 million before special effects from the 2024 financial year onwards.

Due to the continued weak demand, Group sales in the 2023 financial year will also be slightly below the original forecast of € 920 to 950 million.