SURTECO GROUP SE: Adjustment of the forecast for 2023

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SURTECO GROUP SE: Adjustment of the forecast for 2023

Buttenwiesen, 16 October 2023 - SURTECO GROUP SE announces the adjustment of the forecast for the business year 2023. Preliminary sales for the first three quarters of 2023 amount to € 637 million (Q1-3 2022: € 593 million) and preliminary EBIT (earnings before financial result and taxes) to € 4.1 million (Q1-3 2022: € 41.1 million).

The decline in results is primarily attributed to a persistently challenging market environment and exceptional expenses, such as one-time costs related to the Omnova acquisition, including the purchase price allocation, as well as expenses for a results improvement program. Notably, due to recent provisions for staff measures, these exceptional costs have accumulated to a total of 23.5 million euros in the first three quarters of 2023. Consequently, the expected EBIT for the fiscal year 2023 is now in the range of 5 to 15 million euros. EBIT adjusted (adjusted for exceptional expenses) is expected to be in the range of € 35 to 45 million.

The increase in revenue is solely a result of the additional business from the acquired Omnova divisions starting from March 1, 2023. However, due to the ongoing weak demand, the overall group revenue for the fiscal year 2023 is expected to be significantly below the original forecast of € 920 to € 950 million.