Vienna – Despite a “continued challenging market environment”, the Semperit Group increased its half-year result (EBITDA) by 8% to EUR 47.3 million compared to the previous year.

Sales for this period decreased by 3% year-on-year to EUR 345.5 million due to mixed developments in the Group’s two divisions: Semperit Industrial Applications (SIA) and Semperit Engineered Applications (SEA).

Hose and profile manufacturer SIA reported a decline in sales volumes, which led to a drop in sales of 20.6 percent to 152.8 million euros, Semperit reported on August 13.

In contrast, SEA – form, Belting and Rico/liquid silicone – benefited “primarily from the Rico acquisition and from higher sales volumes at form”.

The division’s sales increased by 18.0% year-on-year to EUR 192.8 million in the first half of the year, of which EUR 47.0 million came from Rico.

According to Semperit, total expenses fell by 4.5 percent to EUR 303.7 million in the first six months of the year.

Material costs decreased by €23.3 million or 13.8% to €145.1 million. This is due to the relaxed development of raw material prices on the one hand and lower sales volumes in individual business areas on the other.

Personnel expenses rose to EUR 112.9 million in the first half of 2024, mainly due to the Rico takeover.

Semperit’s cost-cutting program, initiated at the beginning of 2023, also resulted in cost reductions totaling €14.4 million, of which €8.6 million took effect in the first half of 2024.

The Vienna-based company explained that 83 percent of the savings were due to personnel costs, with the rest coming from “other operating expenses.”

“The economic headwinds continue as expected, but Semperit remains well on track and has significantly increased profitability in the first half of 2024,” said CEO Karl Haider.

Although “the challenging market environment” is expected to continue until 2025, Haider said: “Semperit stands on strong and healthy foundations.”

The Group has drawn up a medium-term growth plan with the aim of increasing group sales from EUR 721.1 million in 2023 to “over EUR 900 million” by 2026.

Semperit has also introduced the target of increasing profits by over 50% to €120 million by 2026 (in 2023 it was €71.8 million).