Ringmetall more confident about 2024 after a challenging 2023

Ringmetall more confident about 2024 after a challenging 2023

• Preliminary Group revenue for 2023 down -15.0 percent to EUR 181.4 million
• Preliminary EBITDA of EUR 17.9 million down -36.6 percent on previous year, also due to one-off deconsolidation effects of EUR -4.6 million from sale of HSM
• Guidance 2024 highlights opportunities in current financial year

Munich, 6 February 2024 - Ringmetall SE (ISIN: DE000A3E5E55), a leading international specialist supplier in the packaging industry, can look back on a solid financial year 2023 overall despite a challenging economic environment. The Company did record noticeable effects from the general recessionary economic situation as well as one-off effects from the sale of the Group subsidiary HSM on its revenue and earnings performance. However, a slowly improving environment in the first quarter of 2024 highlights the opportunity for an improved revenue and earnings performance in the current financial year compared to the previous year.

Based on preliminary business figures, Group revenue in 2023 amounts to EUR 181.4 million, which corresponds to a year-on-year decline of 15.0 percent (2022: EUR 213.5 million). The revenue growth from the acquisitions of Protective Lining in the USA and Liner Factory in Germany was offset by a double-digit percentage decline in steel prices. The weakened economic environment, particularly in the second half of 2023, was also reflected in subdued demand from key customer industries, especially the chemical industry. The sale of the Group subsidiary HSM as per 30 June 2023 was also reflected in a revenue base that was around EUR 8 million lower in the second half of 2023. Adjusted for HSM's share of revenue in the 2022 and 2023 financial years, the year-on-year decline in revenue amounted to -12.2 percent.

At EUR 17.9 million, preliminary earnings before interest, taxes, depreciation and amortization (EBITDA) were 36.6 percent lower than in the previous year (2022: EUR 28.3 million), which corresponds to an EBITDA margin on total operating performance of 10.0 percent (2022: 13.1 percent). Adjusted for the earnings contribution from the Group subsidiary HSM, which was sold on 30 June, 2023, and the associated one-off deconsolidation effects of EUR -4.6 million, adjusted EBITDA amounts to EUR 22.0 million, which corresponds to a decrease of -15.5 percent (adjusted EBITDA 2022: EUR 26.0 million, adjusted for HSM's earnings contribution and the one-off effect from the bargain purchase of Rhein-Plast GmbH), with an adjusted EBITDA margin on total operating performance of 12.8 percent. From a purely operational perspective, earnings thus developed almost in line with Group revenue, although the company had to cope with a noticeable reduction in production capacity utilization. Against the backdrop of a shortage of skilled workers, the company decided against cutting back on its core workforce despite a lower order volume in order to be able to quickly increase production volumes again in view of an improved economic environment.

"After a record year in 2022, we had to adapt to a completely different, much more difficult economic environment in 2023 at record speed. At the same time, we made a clear decision to sell our Group subsidiary HSM and thus become a pure packaging specialist," explains Christoph Petri, Spokesman of the Board of Ringmetall SE. "Due to the associated one-off effects, our corporate development in 2023 appears less attractive at first glance. However, a closer look shows that we have held up well in a difficult environment."

The Executive Board views the business performance in the final weeks of the 2023 financial year and at the start of 2024 as a positive signal for improved business performance in the current financial year. At the same time, it cannot be ruled out at this point in time that this development will only be a short-term countermovement. Accordingly, the Executive Board's guidance reflects both a pessimistic and an optimistic scenario in the form of the guidance ranges. For the 2024 financial year, the Executive Board therefore 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 Executive Board intends to specify the guidance in the course of the year. The guidance is based on unchanged raw material prices and exchange rates compared to the end of 2023. It furthermore does not include the effects of acquisitions planned for 2024, including the resulting transaction costs.

"In 2023, we further strengthened and internationalized Ringmetall through successful acquisitions," emphasizes Christoph Petri. "We believe that the current market environment remains attractive for further acquisitions and our financial position remains solid."

The Executive Board will discuss details of the preliminary business figures for 2023 in a conference call for analysts, institutional investors and journalists at 10:30 a.m. CET today. Registration for this is by email via Ms. Anja Brabec (brabec@ringmetall.de).

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 specialist supplier of industrial packaging. The Company produces highly safe closure systems and liners for industrial drums for the chemical, pharmaceutical and food processing industries. Ringmetall furthermore 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, the UK, Spain, Italy, Turkey, the Netherlands, China and the USA. In 2023, Ringmetall generated a turnover of around 180 million euros with more than 800 employees.