Ringmetall closes record year 2022 solidly and confirms annual outlook 2023

Ringmetall closes record year 2022 solidly and confirms annual outlook 2023

• Group revenue up 23.9 percent to EUR 213.5 million
• EBITDA of EUR 28.3 million up 6.3 percent on previous year
• Outlook for the full year 2023 reaffirmed

Munich, April 28, 2023 - Ringmetall SE (ISIN: DE000A3E5E55), a leading international specialty supplier in the packaging industry, once again significantly increased its Group revenue and earnings in 2022 compared to the already very good figures of the previous year. At the same time, the company recorded various countervailing effects in the general economic environment from the fourth quarter onwards, which led to a noticeably weaker sales and earnings momentum.

Group revenue for the full year 2022 amounted to EUR 213.5 million, representing a year-on-year increase of 23.9 percent (2021: EUR 172.3 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 6.3 percent and also marked a new record at EUR 28.3 million (2021: EUR 26.6 million). The EBITDA margin - based on a total operating performance of EUR 216.5 million - declined slightly to 13.1 percent (2021: 15.4 percent). The below-average increase in earnings compared to revenue is mainly due to a higher steel price level in the reporting period and a changed product mix with a higher weighting of the inliner product area.

"As is generally perceptible, the significantly changed economic environment presented many of our customers and especially the chemical industry with considerable challenges in the second half of the year. Against the backdrop of this general economic dampener, we closed 2022 on a solid note," explains Christoph Petri, Spokesman of the Management Board of Ringmetall SE. "Since we can detect a certain cyclicality in our business at regular intervals, we are now well adjusted to such changes and can counteract them quickly accordingly."

The key figures for fiscal year 2022 are as follows:

IFRS, in TEUR 2022 2021 ∆ [abs.] ∆ [%] Group revenue 213,511 172,338 41,173 23.9% Total output (TO) 216,535 173,124 43,411 25.1% Gross profit 91,715 80,025 11,690 14.6% Gross profit margin on TO 42.4% 46.2%     EBITDA 28,300 26,620 1,680 6.3% EBITDA margin on TO 13.1% 15.4%     EBIT 21,283 20,177 1,106 5.5% EBIT margin on TO 9.8% 11.7%     Group net result 15,920 14,917 1,003 6.7%

The Industrial Packaging segment increased its revenue by 23.4 percent to EUR 197.2 million (2021: EUR 159.7 million). Segment EBITDA increased by 2.4 percent to EUR 30.3 million (2021: EUR 29.6 million). In the Rings product area, the second half of the year saw - in addition to declining steel prices and a weakening of the US dollar against the euro - a general calming of the previous year's market environment, which had tended to heat up, as well as destocking effects on the customer side, reflected in an overall decline in demand for drum closure systems. It is also apparent that higher energy prices, supply chain issues, and sharp cost increases have presented many end-user industries in the clamping rings product area, above all the chemical industry, with noticeable challenges since the second half of 2022. This led to an overall decline in volumes in the Rings product area. By contrast, demand in the Inliner product area increased steadily over the reporting period. Rhein-Plast, which was acquired in February 2022, was successfully integrated into the Group in the further course of the year and production capacities were further expanded and strengthened by investments in machinery. In addition, preparations were made for the acquisition of Protective Lining, a leading manufacturer of polyethylene inliners in the USA, completed at the beginning of January 2023, and thus for expansion into the North American market for inliners.

In terms of revenue, the Industrial Handling Segment continued to benefit from a significant increase in order volumes, which the company attributes mainly to deglobalization effects. Segment revenue increased by 30.1 percent to EUR 16.3 million (2021: EUR 12.6 million). Segment EBITDA in the fourth quarter was significantly negatively impacted by quality issues due to a worsening shortage of skilled workers in the Ingolstadt region. At EUR 1.1 million, it was down 19.2 percent on the previous year. The company is currently discussing measures to counteract this development.

Separate analysis of the effects of raw material price developments, inorganic growth and organic growth showed the following effects on Group revenue:

• Effect of raw material price development:  +15.7 percent
• Effect of corporate acquisitions:   +16.7 percent
• Effect of organic business development:  -8.4 percent

In detail, the segment development was as follows:

IFRS, in TEUR 2022 2021 ∆ [abs.] ∆ [%] Industrial Packaging         Revenue 197,183 159,785 37,398 23.4% Total output (TO) 199,819 160,422 39,397 24.6% EBITDA 30,274 29,570 704 2.4% EBITDA margin on TO 15.2% 18.4%     Industrial Handling         Revenue 16,328 12,553 3,775 30.1% Total output (TO) 16,716 12,702 4,014 31.6% EBITDA 1,100 1,362 -262 -19.2% EBITDA margin on TO 6.6% 10.7%    

"Even though we are currently experiencing significant economic headwinds in our day-to-day business, we feel well equipped overall," emphasizes Management Board member Christoph Petri. "However, the environment also brings advantages. Acquisitions are a central component of our business model. And the environment is currently very good for acquisitions. We have strong cash flow and sufficient cash and bank lines to close at least one more transaction in the coming months."

The Management Board of Ringmetall SE confirms its outlook for the full year. Including the acquisition of Protective Lining in the USA announced at the beginning of January, the Management Board expects Group revenue in the range of EUR 195 to 220 million with EBITDA in the range of EUR 22 to 28 million for 2023. The outlook is based on unchanged raw material prices and exchange rates compared to year-end 2022. It also does not include the effects of acquisitions planned for 2023, including the resulting transaction costs.

The Management Board of Ringmetall SE invites to the next video conference on May 4, 2023, against the background of the publication of the business figures for the first quarter of 2023, which is due at short notice. The complete Annual Report 2022 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 Ringmetall Group

Ringmetall is a leading international specialty supplier in the packaging industry. The Industrial Packaging business unit offers high-security closure systems and inner sleeves 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 revenues of around EUR 210 million per year.