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30.04.2019 10:00:12

DGAP-News: SURTECO GROUP SE: EBIT is projected to increase to EUR 38 - EUR 40 million in 2019 notwithstanding sustained difficult framework conditions

DGAP-News: SURTECO GROUP SE / Key word(s): Annual Results/Dividend
SURTECO GROUP SE: EBIT is projected to increase to EUR 38 - EUR 40 million in 2019 notwithstanding sustained difficult framework conditions

30.04.2019 / 10:00
The issuer is solely responsible for the content of this announcement.


SURTECO GROUP SE: EBIT is projected to increase to EUR 38 - EUR 40 million in 2019 notwithstanding sustained difficult framework conditions

(Anzeige)Passende neue Barrier Reverse Convertibles

- Consolidated sales at between EUR 670 and EUR 700 million (2018: EUR 699 million) are expected in 2019

- Consolidated net profit of EUR 18.6 million in 2018 (2017: EUR 26.2 million)

- Dividend proposal of EUR 0.55 for 2018 to the Annual General Meeting as part of the long-term dividend policy

Buttenwiesen, 30 April 2019 - SURTECO GROUP SE, holding company for leading national and international brands in surface technology, envisages restrained development of sales for the business year 2019 against a background of difficult economic conditions, although there is significant potential for increased earnings. The company therefore anticipates sales within a corridor between EUR 670 and EUR 700 million for 2019. In the business year 2018, consolidated sales at EUR 699.0 were slightly above the year-earlier level of EUR 689.7 million. A value of between EUR 38 and EUR 40 million is forecast for earnings before financial result and income tax (EBIT). Owing to extraordinary charges amounting to EUR 6.1 million, EBIT in 2018 amounted to EUR 32.2 million (2017: EUR 44.7 million) and adjusted by these one-off effects, EBIT was EUR 38.3 million. In line with this result, consolidated net profit fell from EUR 26.2 million in the previous year to EUR 18.6 million. On the basis of a stable payout rate of 46 % (2017: 47 %), the Management Board and the Supervisory Board will submit a proposal for a dividend per share of EUR 0.55 (2017: EUR 0.80) to the Annual General Meeting being held on 27 June 2019.

"Since we responded as early as 2018 with the implementation of efficiency enhancement measures, we expect an improvement of EBIT to between EUR 38 and EUR 40 million in 2019. This should not mask the fact that the year will once again be challenging in line with the intensity of the weakening of economic conditions", commented Dr. Herbert Müller, Chairman of the Management Board of SURTECO GROUP SE.

Segments with varying development

While the sales of the plastics segment rose by 8 % to EUR 347.4 million (2017: EUR 321.7 million), the paper segment battled with weaker demand and posted a drop in sales of 4 % to EUR 351.6 million (2017: EUR 368.0 million). These developments were also reflected in segmental EBIT, where the plastics line succeeded in reporting an increase of 4 % to EUR 25.5 million, while a significant fall of just under 50 % to EUR 13.3 million was recorded in the paper segment.

Gratifying return to significantly positive free cash flow

Against the background of a stable balance sheet total of EUR 844.5 million, the equity ratio improved slightly to 41.8 % on 31 December 2018 (31 December 2017: 41.4 %). The level of debt (gearing) was situated at 56 % after 54 % in the year 2017 with the net level of financial debt amounting to EUR 197.5 million after EUR 190.0 million in the previous year. Without outflows for the acquisition of companies, SURTECO succeeded achieving a significantly positive value for free cash flow amounting to EUR 11.2 million (2017: EUR -32.6 million) in 2018. Overall, this gives the Group a very sound platform for further development of the company.


You will find the Annual Report for the year 2018 and additional information about SURTECO GROUP SE on the Internet at www.surteco-group.com.


Contact:

SURTECO GROUP SE  
Martin Miller
Investor Relations and Press Office
T +49 8274 9988-508
F +49 8274 9988-505
 
www.surteco-group.com
ir@surteco-group.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.
The Group having a workforce of more than 3,300 employees at 23 production sites worldwide, generates annual sales of around EUR 700 million. 24 % of these sales are generated in Germany, 47 % in European countries outside Germany and a further 29 % 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.

More information on the company is available at: www.surteco-group.com

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.

 

Important indicators of SURTECO GROUP SE (in EUR million)

      2017     2018    Variation
Consolidated sales 689.7 699.0 +1 %
- of which paper 368.0 351.6 -4 %
- of which plastics 321.7 347.4 +8 %
Foreign sales in % 75 76 + 1 pts
EBITDA 83.1 72.8 -12 %
EBIT 1 44.7 32.2 -28 %
- of which paper 26.9 13.3 -51 %
- of which plastics 24.6 25.5 +4 %
EBIT margin in % 6.5 4.6 -1.9 pts
EBT 33.5 27.1 -19 %
Consolidated net profit 26.2 18.6 -29 %
Earnings per share in EUR 2 1.69 1.20 -29 %
Dividend per share in EUR 3 0.80 0.55 -31 %
Payout ratio in % 47 46 -1 pts
 
    31/12/2017   31/12/2018   Variation
Balance sheet total 842.6 844.5 -
Equity 349.2 353.2 +1 %
Net debt 190.0 197.5 +4 %
Level of debt in % 4 54 56 +2 pts
Equity ratio in % 41.4 41.8 +0.4 pts
Cash flow from current business operations 82.9 60.7 -27 %
Free cash flow -32.6 11.2 +134 %
Employees 3,295 3,304 -
 

(1) Difference to balance of segment earnings due to internal clearing

(2) Based on a number of shares amounting to 15,505,731

(3) Dividend proposal to the Annual General Meeting at 27. June 2019

(4) Net debt / Equity



30.04.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de


Language: English
Company: SURTECO GROUP SE
Johan-Viktor-Bausch-Str. 2
86647 Buttenwiesen
Germany
Phone: +49 (0)8274 99 88-0
Fax: +49 (0)8274 99 88-5 05
E-mail: ir@surteco-group.com
Internet: www.surteco-group.com
ISIN: DE0005176903
WKN: 517 690
Listed: Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange
EQS News ID: 804435

 
End of News DGAP News Service

804435  30.04.2019 

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