Ringmetall sees signs of economic slowdown in final quarter of record year 2022

Ringmetall sees signs of economic slowdown in final quarter of record year 2022

• Preliminary Group revenues increase by 23.8 percent to EUR 213.3 million in 2022
• Preliminary EBITDA of EUR 27.6 million up 3.6 percent on previous year
• Customer-side destocking effects in the fourth quarter followed by cautiously positive start to the year 2023

Munich, 7 February 2023 - Ringmetall SE (ISIN: DE000A3E5E55), a leading international specialist supplier in the packaging industry, has once again increased its revenues and earnings in 2022 on the basis of preliminary business figures 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 in the fourth quarter, which led to significantly weaker sales and earnings momentum at the end of the year.

Preliminary Group revenues in 2022 amounted to EUR 213.3 million, which corresponds to a year-on-year increase of 23.8 percent (2021: EUR 172.3 million). In addition to noticeably declining steel prices in the second half of the year and a significant weakening of the US dollar against the euro, destocking effects on the customer side were reflected in an overall subdued demand for drum closure systems. By contrast, business in the inliner product area and the Industrial Handling segment continued to develop positively throughout. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by only 3.6 percent in 2021 following the high-margin previous year, but nevertheless also marked a new record at EUR 27.6 million (2021: EUR 26.6 million). In particular, the inconsistent demand situation in the year-end business led to more difficult production planning and accordingly impaired production efficiency. The EBITDA margin - in relation to total operating performance of EUR 216.3 million - declined slightly to 12.7 percent (2021: 15.4 percent).

"Against the backdrop that the chemical industry as an important end user of our products has come under significant pressure in the course of the year, we have closed 2022 on a solid note. This proves once again how diversified Ringmetall is today," explains Christoph Petri, CEO of Ringmetall SE. "At the same time, however, the US dollar and steel prices showed a significant decline in the second half of the year, which put pressure on our revenues. Overall, we can nevertheless look back on a very successful fiscal year 2022, in which Ringmetall grew once again."

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

"We have made a thoroughly good start to 2023, but are feeling a high degree of uncertainty among our end customers, especially from the chemical industry," says Christoph Petri, describing the current market environment. "In addition, the average steel prices for 2022 are significantly higher than the year-end levels. So, with average organic growth in 2023, we will have to stretch ourselves quite a bit to match 2022. At the same time, we are positive that 2023 should be a good year for acquisitions. We are in a number of promising discussions."

For more information on the Ringmetall Group and its affiliated subsidiaries, please visit 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 210 million euros per year.