Ringmetall SE continues to benefit from booming demand and rising raw material prices in the third quarter

DGAP-News: Ringmetall SE / Key word(s): 9 Month figures
01.11.2021 / 07:00
The issuer is solely responsible for the content of this announcement.

Ringmetall SE continues to benefit from booming demand and rising raw material prices in the third quarter

- Group revenues up 40.6 percent to EUR 126.4 million
- EBITDA more than doubles to EUR 19.4 million; EBIT jumps 240.1 percent to EUR 14.7 million
- Boom in demand continues seamlessly in year-end business to date

Munich, 1 November 2021 - Ringmetall SE (ISIN: DE000A3E5E55), a leading international specialist supplier in the packaging industry, continues to benefit from booming demand in a variety of customer industries. In addition to rising raw material prices, above-average organic growth in all divisions is providing a noticeable tailwind to sales figures.

In the first nine months, Group revenues increased significantly by 40.6 percent to EUR 126.4 million (9M 2020: EUR 89.9 million) with a total output of EUR 127.6 million (9M 2020: EUR 89.9 million). Once again, the strong growth was largely driven by a boom in raw material prices, above all steel prices. However, organic revenue growth was also at an above-average level. In addition to continuing high demand for drum closure systems, sales in the inliner product area in particular also picked up again on a sustained basis, largely leaving behind the more subdued demand caused by the pandemic. "It is becoming increasingly clear that with our current product mix we are developing in a much more balanced manner and are noticeably less dependent on the development of individual customer industries than we were a few years ago," Christoph Petri, CEO of Ringmetall SE, explains the development. "By turning away from price escalation clauses and automatisms in product sales, we are at the same time orienting ourselves much more closely to the actual developments of the market. At the same time, our cross-national purchasing network guarantees us and our customers a high degree of delivery capability with the usual adherence to delivery dates."

Sustainable pricing and a high level of production efficiency resulted in Group's earnings performance in the year to date clearly outpacing the development of revenues. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased significantly year-on-year by 116.3 percent to 19.4 (9M 2020: EUR 9.0 million). In relation to total output, the EBITDA margin of 15.2 percent was above the upper end of the medium-term target corridor (9M 2020: 10.0 percent). Earnings before interest and taxes (EBIT) multiplied in the same period to EUR 14.7 million (9M 2020: EUR 4.3 million).

Separately considering the effects of raw material price development, inorganic and organic growth, the following effects on segment sales were evident in the first nine months of 2021:

Industrial Packaging
- Effect of raw material price development on segment sales: +29.3 percent
- Effect of company acquisitions on segment sales: +4.9 percent
- Effect of organic business development on segment sales: +8.1 percent

Industrial Handling
- Effect of organic business development on segment sales: +22.6 percent

The key figures for business development are as follows:

IFRS, in EUR '000 9M 2021 9M 2020 ∆ [abs.] ∆ [%]
Group revenues 126.4 89.9 36.5 40.6%
Total output (TO) 127.6 89.9 37.7 41.9%
Gross profit 59.9 43.8 16.1 36.7%
Gross margin in TO 47.0% 48.7%    
EBITDA 19.4 9.0 10.4 116.3%
EBITDA margin on TO 15.2% 10.0%    
EBIT 14.7 4.3 10.4 240.1%
EBIT margin on TO 11.5% 4.8%    
*Temporary staff are reported under personnel expenses and not under cost of materials, as this is more in line with the Group's economic approach.

In the Industrial Packaging segment, the first half of the year saw a significantly more subdued development in the inliner product area than in the drum closure system business, but this trend visibly returned to normal in the third quarter. Sales of beer tank liners picked up noticeably, but were not yet at pre-pandemic levels at the end of the third quarter. The Management Board of the Ringmetall Group therefore does not expect a possible further wave of the pandemic at the end of the year to have a noticeably reversible effect on segment sales. In the first nine months of 2021, segment revenues in Industrial Packaging increased by 42.2 percent to EUR 117.3 million (9M 2020: EUR 82.5 million). Segment EBITDA more than doubled to EUR 22.1 million (9M 2020: EUR 10.4 million).

The Industrial Handling segment recorded one of the strongest sales increases in the company's history, with sales of EUR 9.1 million or an increase of 22.6 percent year-on-year (9M 2020: EUR 7.4 million). Segment EBITDA benefited from the consistent efficiency enhancement measures implemented in recent years and rose significantly accordingly to EUR 0.9 million (9M 2020: EUR 0.2 million). Both the product area for material handling equipment and the product area for agricultural machinery showed increasingly robust demand driven by positive growth momentum in the customer industries. Nevertheless, the company currently considers this development, which is undoubtedly characterized by catch-up effects, to be sustainable.

Already on 18 October, the Management Board of the Ringmetall Group raised its forecast for the expected business development in the full year 2021. Accordingly, the planning assumes Group revenues of between EUR 163 and 173 million (previously: EUR 150 to 160 million) and EBITDA of between EUR 24 and 26 million (previously: EUR 17 to 19 million), expecting an unchanged positive business performance in the year-end business.

Details on the business development in the first nine months of 2021 will be discussed by the Management Board in a video conference for analysts, institutional investors and journalists. Due to today's public holiday in Baden-Württemberg, Bavaria, North Rhine-Westphalia, Rhineland-Palatinate and Saarland, the conference will take place tomorrow, November 2, 2021, at 3:00 p.m. CET. Registration for this is via email through Ms. Melanie Preuss (preuss@ringmetall.de).

For more information on the Ringmetall Group and its affiliated subsidiaries, please visit www.ringmetall.de.

Ingo Middelmenne
Investor Relations
Ringmetall AG
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 in the packaging industry. The Industrial Packaging business unit offers high-security closure systems and inliners for industrial drums for the chemical, petrochemical, pharmaceutical and food processing industries. The Industrial Handling Business Unit develops application-optimized vehicle attachments for handling and transporting packaging units. In addition to the Group headquarters in Munich, Ringmetall is represented by worldwide production and sales subsidiaries in Germany, Great Britain, Spain, Italy, Turkey, the Netherlands as well as China and the USA. Worldwide, Ringmetall generates sales of around EUR 170 million per year.



01.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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