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07.05.2024 07:01:16 - dpa-AFX: EQS-News: Ringmetall expands earnings margins in the first quarter against the background of declining steel prices (english)
Ringmetall expands earnings margins in the first quarter against the
background of declining steel prices
EQS-News: Ringmetall SE / Key word(s): Quarter Results
Ringmetall expands earnings margins in the first quarter against the
background of declining steel prices
07.05.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Ringmetall expands earnings margins in the first quarter against the
background of declining steel prices
- Group revenue stable organically at EUR 45.6 million, but down slightly
due to steel prices
- EBITDA of EUR 6.3 million slightly above adjusted previous year's level
- EBITDA margin increases to 13.9 percent; outlook confirmed
Munich, 7 May 2024 - Ringmetall SE (ISIN: DE000A3E5E55), a leading
international specialist supplier in the packaging industry, successfully
stabilized its business development overall in the first quarter of 2024.
However, declining steel prices combined with an almost unchanged organic
revenue development resulted in a noticeable expansion of earnings margins.
At EUR 45.6 million, Group revenue was -4.5 percent below the adjusted
prior-year level (Q1 2023, adjusted for HSM's contribution: EUR 47.8
million). 'In order to be able to better classify our current business
development, we refer in this presentation to the previous year's figures
for revenue and EBITDA on an adjusted basis, meaning without the respective
contribution of our former Group subsidiary HSM, which was sold on 30 June
2023,' explains Christoph Petri, Spokesman of the Management Board of
Ringmetall SE. 'For the sake of order, however, we are also presenting the
previous year's figures reported in accordance with IFRS in tabular form.'
While Group revenue was almost unchanged from the previous year in purely
organic terms, the negative effects on revenue from falling steel prices
were much more pronounced than the positive effects on revenue from company
acquisitions.
At EUR 6.3 million, earnings before interest, taxes, depreciation and
amortization (EBITDA) were 1.7 percent higher than the adjusted prior-year
level (Q1 2023, adjusted for the HSM contribution: EUR 6.1 million). The
EBITDA margin in relation to total output increased to 13.9 percent (Q1
2023, adjusted for the HSM contribution: 12.6 percent), mainly due to the
steel price-related decline in Group revenue.
The key figures for business development in the reporting period are as
follows:
*The comparative figures for the previous year include the contribution of
the former subsidiary HSM, which was sold as per 30 June 2023.
In the Closure Systems product area, in which the company produces clamping
rings, drum lids and other accessories for industrial drums, revenue
increased slightly compared to the previous year from a purely organic
perspective. However, this was offset by a noticeable decline in steel
prices compared to the first quarter of 2023, resulting in an overall
decline of revenue in the product area. Almost all sales markets in both
Europe and North America were robust, with sales volumes remaining largely
unchanged. Exceptions to this were the weak development of demand in the UK
and the noticeable increase in demand in the core market of Germany. The
latter was mainly due to the recovery in demand from the chemical industry,
although this was still well below pre-pandemic levels.
The Liners product area, in which Ringmetall produces liners for industrial
drums and other packaging units as well as packaging solutions for the
beverage industry (e.g. bag-in-box systems), increased its revenue in the
first quarter of 2024. The revenue growth was purely inorganic in nature and
was related to the acquisitions of Liner Factory in June 2023 and IDF in
November 2023. While raw material prices declined only slightly, organic
revenue growth was noticeably below the previous year. However, the
comparative decline in demand should be seen in the context of above-average
demand in the previous year's quarter. At the same time, however, the
product area is still facing weak demand from a sub-segment of specialty
chemicals. From a regional perspective, the sales development was largely
homogeneous.
'After the upheavals of recent years caused by the pandemic, the outbreak of
war, energy price hikes and significantly higher interest and inflation
levels, we have been in much calmer waters again for several months,' says
Christoph Petri, Spokesman of the Management Board of Ringmetall SE,
describing the environment. 'The course of business is much more calmed down
again, even though revenue levels have not yet reached pre-crisis levels. If
the economic environment remains as it is for the rest of the year, we are
confident of a further recovery.'
In light of the company's current performance in the first quarter, the
Management Board confirms its outlook for business development in 2024 as a
whole. Accordingly, the company expects 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 outlook in more detail
as the year progresses. The outlook 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 Head of Investor Relations will discuss details of business development
in the first quarter of 2024 in a conference call for analysts,
institutional investors and journalists at 9:00 a.m. CET today. You can
register for this by e-mail via Ms. Angela Weiß (weiss@ringmetall.de).
Further information on the Ringmetall Group and its 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 Group revenue of EUR 181.6 million
with 867 employees.
---------------------------------------------------------------------------
07.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
End of News EQS News Service
---------------------------------------------------------------------------
1895663 07.05.2024 CET/CEST
background of declining steel prices
EQS-News: Ringmetall SE / Key word(s): Quarter Results
Ringmetall expands earnings margins in the first quarter against the
background of declining steel prices
07.05.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Ringmetall expands earnings margins in the first quarter against the
background of declining steel prices
- Group revenue stable organically at EUR 45.6 million, but down slightly
due to steel prices
- EBITDA of EUR 6.3 million slightly above adjusted previous year's level
- EBITDA margin increases to 13.9 percent; outlook confirmed
Munich, 7 May 2024 - Ringmetall SE (ISIN: DE000A3E5E55), a leading
international specialist supplier in the packaging industry, successfully
stabilized its business development overall in the first quarter of 2024.
However, declining steel prices combined with an almost unchanged organic
revenue development resulted in a noticeable expansion of earnings margins.
At EUR 45.6 million, Group revenue was -4.5 percent below the adjusted
prior-year level (Q1 2023, adjusted for HSM's contribution: EUR 47.8
million). 'In order to be able to better classify our current business
development, we refer in this presentation to the previous year's figures
for revenue and EBITDA on an adjusted basis, meaning without the respective
contribution of our former Group subsidiary HSM, which was sold on 30 June
2023,' explains Christoph Petri, Spokesman of the Management Board of
Ringmetall SE. 'For the sake of order, however, we are also presenting the
previous year's figures reported in accordance with IFRS in tabular form.'
While Group revenue was almost unchanged from the previous year in purely
organic terms, the negative effects on revenue from falling steel prices
were much more pronounced than the positive effects on revenue from company
acquisitions.
At EUR 6.3 million, earnings before interest, taxes, depreciation and
amortization (EBITDA) were 1.7 percent higher than the adjusted prior-year
level (Q1 2023, adjusted for the HSM contribution: EUR 6.1 million). The
EBITDA margin in relation to total output increased to 13.9 percent (Q1
2023, adjusted for the HSM contribution: 12.6 percent), mainly due to the
steel price-related decline in Group revenue.
The key figures for business development in the reporting period are as
follows:
IFRS, in EUR '000 Q1 2024 Q1 2023* (abs.) (%)
Group revenue 45,626 51,738 -6,112 -11.8%
Total output (TO) 45,154 52,747 -7,593 -14.4%
Gross profit 23,449 24,434 -985 -4.0%
Gross profit margin (on TO) 51.9% 46.3% 5.6%
EBITDA 6,255 6,318 -63 -1.0%
EBITDA margin (on TO) 13.9% 12.0% 1.9%
EBIT 4,232 4,405 -173 -3.9%
EBIT margin (on TO) 9.4% 8.4% 1.0%
*The comparative figures for the previous year include the contribution of
the former subsidiary HSM, which was sold as per 30 June 2023.
In the Closure Systems product area, in which the company produces clamping
rings, drum lids and other accessories for industrial drums, revenue
increased slightly compared to the previous year from a purely organic
perspective. However, this was offset by a noticeable decline in steel
prices compared to the first quarter of 2023, resulting in an overall
decline of revenue in the product area. Almost all sales markets in both
Europe and North America were robust, with sales volumes remaining largely
unchanged. Exceptions to this were the weak development of demand in the UK
and the noticeable increase in demand in the core market of Germany. The
latter was mainly due to the recovery in demand from the chemical industry,
although this was still well below pre-pandemic levels.
The Liners product area, in which Ringmetall produces liners for industrial
drums and other packaging units as well as packaging solutions for the
beverage industry (e.g. bag-in-box systems), increased its revenue in the
first quarter of 2024. The revenue growth was purely inorganic in nature and
was related to the acquisitions of Liner Factory in June 2023 and IDF in
November 2023. While raw material prices declined only slightly, organic
revenue growth was noticeably below the previous year. However, the
comparative decline in demand should be seen in the context of above-average
demand in the previous year's quarter. At the same time, however, the
product area is still facing weak demand from a sub-segment of specialty
chemicals. From a regional perspective, the sales development was largely
homogeneous.
'After the upheavals of recent years caused by the pandemic, the outbreak of
war, energy price hikes and significantly higher interest and inflation
levels, we have been in much calmer waters again for several months,' says
Christoph Petri, Spokesman of the Management Board of Ringmetall SE,
describing the environment. 'The course of business is much more calmed down
again, even though revenue levels have not yet reached pre-crisis levels. If
the economic environment remains as it is for the rest of the year, we are
confident of a further recovery.'
In light of the company's current performance in the first quarter, the
Management Board confirms its outlook for business development in 2024 as a
whole. Accordingly, the company expects 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 outlook in more detail
as the year progresses. The outlook 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 Head of Investor Relations will discuss details of business development
in the first quarter of 2024 in a conference call for analysts,
institutional investors and journalists at 9:00 a.m. CET today. You can
register for this by e-mail via Ms. Angela Weiß (weiss@ringmetall.de).
Further information on the Ringmetall Group and its 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 Group revenue of EUR 181.6 million
with 867 employees.
---------------------------------------------------------------------------
07.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
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: 1895663
End of News EQS News Service
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1895663 07.05.2024 CET/CEST
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
RINGMETALL SE NA O.N. | A3E5E5 | Frankfurt | 3,590 | 04.06.24 08:25:02 | +0,030 | +0,84% | 3,750 | 3,940 | 3,590 | 3,560 |
