Ringmetall closes 2023 slightly better than expected based on preliminary
figures

EQS-News: Ringmetall SE / Key word(s): Annual Results/Annual Report
Ringmetall closes 2023 slightly better than expected based on preliminary
figures

29.04.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Ringmetall closes 2023 slightly better than expected based on preliminary
figures

* Group revenue down by -15.0 percent to EUR 181.6 million

  * EBITDA down by 32.3 percent to EUR 19.2 million, also due to one-off
    deconsolidation effects of EUR -4.6 million from the sale of HSM

* Operating cash flow increases by 20.0 percent to EUR 22.1 million

  * Continued stabilization of business development underpins forecast for
    2024

Munich, 29 April 2024 - Ringmetall SE (ISIN: DE000A3E5E55), a leading
international specialist supplier in the packaging industry, has performed
slightly better in the past year than expected on the basis of the
preliminary business figures published at the beginning of February,
according to the 2023 Annual Report published today. The noticeable
brightening of the environment at the start of 2024 led to a sustained
stabilization in business development and thus underpins the outlook for the
year as a whole.

At EUR 181.6 million, Group revenue in 2023 was down 15.0 percent on the
previous year (2022: EUR 213.5 million). The revenue growth from the
acquisitions of Protective Lining in the USA as well as IDF and Liner
Factory in Germany was offset by a double-digit percentage decline in
revenue due to the steel price development. The weakened economic
environment, particularly in the second half of 2023, was also reflected in
subdued demand from key customer industries, especially the chemical
industry. The sale of the Group subsidiary HSM as at 30 June 2023 was also
reflected in a revenue base that was around EUR 8 million lower in the
second half of 2023. Adjusted for HSM's revenue share in the 2022 and 2023
financial years, the year-on-year decline in revenue amounted to -12.1
percent.

At EUR 19.2 million, earnings before interest, taxes, depreciation and
amortization (EBITDA) were down 32.3 percent on the previous year (2022: EUR
28.3 million), corresponding to an EBITDA margin on total operating output
of 10.6 percent (2022: 13.1 percent). Adjusted for the earnings contribution
from the Group subsidiary HSM, which was sold on 30 June 2023, and the
associated one-off deconsolidation effects of EUR -4.6 million, adjusted
EBITDA amounts to EUR 23.3 million, which corresponds to a decline of -10.4
percent (adjusted EBITDA 2022: EUR 26.0 million, adjusted for HSM's earnings
contribution and the one-off effect from the bargain purchase of Rhein-Plast
GmbH), with an adjusted EBITDA margin on total operating performance of 13.2
percent. From a purely operational perspective, the earnings trend is
therefore slightly better than the trend in Group revenue despite a
noticeable reduction in production capacity utilization.

Compared to the adjusted forecast for the 2023 financial year from 30 June,
Group revenue was therefore in the lower half of the forecast range of EUR
175 to 195 million, while EBITDA was slightly above the forecast range of
EUR 13 to 18 million.

'In 2023, we made a conscious decision not to cut our core workforce in
order to be able to quickly expand our production again in an improved
environment in 2024,' explains Christoph Petri, CEO of Ringmetall SE. 'As a
result, we certainly lost one or two margin points last year. However, we
are cautiously optimistic that the current positive trend will continue and
that we will be able to benefit from a recovery in the economy. Still, we
are certainly a long way from a return to normal mode.'

The key figures for the 2023 financial year are as follows:

    IFRS, in EUR `000                     2023     2022      (abs.)   (%)
    Group revenue                         181,584  213,511  -31,927   -15.0%
    Total output (TO)                     180,161  216,535  -36,374   -16.8%
    Gross profit                          90,252   91,715   -1,463    -1.6%
    Gross profit margin (on TO)           50.1%    42.4%
    EBITDA                                19,156   28,300   -9,144    -32.3%
    EBITDA margin (on TO)                 10.6%    13.1%
    EBIT                                  11,289   21,283   -9,994    -47.0%
    EBIT margin (on TO)                   6.3%     9.8%
    Consolidated net income for the year  6,330    15,920   -9,590    -60.2%

The company's operating cash flow developed very positively. At EUR 22.1
million, it increased by 20.0 percent compared to the previous year (2022:
EUR 18.4 million), characterized by a reduction in inventories due to an
easing of supply chains in the second half of the year. At EUR 6.8 million,
cash and cash equivalents at the end of the year were slightly below the
previous year (31 December 2022: EUR 8.1 million), while equity increased
further to EUR 79.2 million and the equity ratio to 60.0 percent (31
December 2022: EUR 77.5 million; 59.0 percent).

In the Industrial Packaging division, revenue declined by 12.1 percent to
EUR 173.3 million (2022: EUR 197.2 million). At -11.6 percent, EBITDA fell
at a slightly lower rate to EUR 26.8 million (2022: EUR 30.3 million). Both
the Closure Systems and Liners product areas saw a significant decline in
raw material prices - and in particular a significant decline in steel
prices - which reduced revenue. While a cyclical weakening of demand in the
customer industries was reflected in declining sales volumes in the first
nine months of the year, a gradual trend reversal in demand took place over
the course of the fourth quarter and has continued since then. The
integration of the subsidiary Protective Lining, acquired in January, with
which Ringmetall successfully completed its market entry in the liner
product area in the USA, continues to proceed according to plan. The
integration of the German-based companies IDF and Liner Factory, which were
acquired in 2023, is also progressing in line with expectations.

In the Industrial Handling business division, revenue remained unchanged at
the end of the first half of the year at EUR 8.3 million (2022: EUR 16.3
million) as a result of the sale of the Group subsidiary HSM and the
associated closure of the segment as at 30 June 2023. EBITDA was also
unchanged compared to 30 June 2023 at EUR 0.5 million (2022: EUR 1.1
million).

In detail, the development of the divisions was as follows:

    IFRS, in EUR `000      2023     2022      (abs.)   (%)
    Industrial Packaging
    Revenue                173,314  197,183  -23,869   -12.1%
    Total output (TO)      171,726  199,819  -28,093   -14.1%
    EBITDA                 26,759   30,274   -3,545    -11.6%
    EBITDA margin (on TO)  15.6%    15.2%
    Industrial Handling
    Revenue                8,270    16,328   -8,058    -49.4%
    Total output (TO)      8,435    16,716   -8,281    -49.5%
    EBITDA                 548      1,100    -552      -50.2%
    EBITDA margin (on TO)  6.5%     6.6%

In view of the increasingly positive business environment, the Management
Board confirms its outlook for the year as a whole. However, it still cannot
be ruled out that the current recovery trends in parts of the economy are
only of a short-term nature. Accordingly, the Management Board's forecast
reflects both a pessimistic and an optimistic scenario in the form of the
forecast ranges. For the 2024 financial year, the Management Board expects a
Group revenue of between EUR 170 million and EUR 195 million with earnings
before interest, taxes, depreciation and amortization (EBITDA) of between
EUR 20 million and EUR 27 million. The Management Board intends to specify
the forecast later in the year. The forecast is based on unchanged raw
material prices and exchange rates compared to the end of 2023. It also does
not include the effects of acquisitions planned for 2024, including the
resulting transaction costs.

The Management Board of Ringmetall SE invites you to the next video
conference on 7 May 2024 in view of the short-term publication of the
business figures for the first quarter. The complete Annual Report 2023 is
available for download on the company's website. Further information on the
Ringmetall Group and its affiliated subsidiaries can be found at
www.ringmetall.de.

Contact:
Ingo Middelmenne
Investor Relations
Ringmetall SE
Phone: +49 (0 )89 45 220 98 12
Mobile: +49 (0 )174 90 911 90
Email: middelmenne@ringmetall.de

About the Ringmetall Group

Ringmetall is a leading international specialist supplier of industrial
packaging. The company produces high-security closure systems and inner
liners for industrial drums for the chemical, pharmaceutical and food
processing industries. Ringmetall also offers innovative packaging solutions
for the beverage industry. With products that are highly recyclable, the
company contributes to strengthening the circular economy and the
sustainability of its end customers. In addition to its headquarters in
Munich, the Group is represented by global production and sales offices in
Germany, France, the UK, Spain, Italy, Turkey, the Netherlands, China and
the USA. In 2023, Ringmetall generated consolidated sales of EUR 181.6
million with 867 employees.


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   Language:       English
   Company:        Ringmetall SE
                   Innere Wiener Str. 9
                   81667 Munich
                   Germany
   Phone:          089 / 45 22 098 - 0
   Fax:            089 / 45 22 098 - 22
   E-mail:         info@ringmetall.de
   Internet:       www.ringmetall.de
   ISIN:           DE000A3E5E55
   WKN:            A3E5E5
   Listed:         Regulated Market in Frankfurt (General Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1890759

End of News EQS News Service
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1890759 29.04.2024 CET/CEST