Simona AG, a manufacturer and development partner for thermoplastic products based in Kirn, Rhineland-Palatinate, recorded a 5.7 % decline in sales in the first nine months of the current financial year. Despite stable sales volumes, weak demand for fluoropolymer products and increasing price pressure led to sales of EUR 440.5 million compared to EUR 467.2 million in the previous year.
The third quarter was also weaker than in the previous year, with consolidated sales falling by 3.4 % to 142.5 million euros. Earnings before interest and taxes (EBIT) also fell significantly to 28.5 million euros compared to 41.6 million euros in the same period of the previous year, with an EBIT margin of just 6.5 %.
Regional differences: stability in America and growth in Asia-Pacific
The sales trend varies greatly between the regions. In Europe and the Middle East (EMEA), Simona was particularly hard hit by weak demand from industry, while industrial business remained stable in the Americas.
By contrast, the Asia-Pacific region recorded positive growth, thanks in particular to strong sales in China. Business with mobility applications such as aircraft and caravan interiors weakened, particularly in EMEA and the Americas, while Asia-Pacific was also able to generate growth in this segment.
Results in the business lines: bright spots in the infrastructure sector and fish farming
A differentiated picture emerges in the various business lines: While the Industry business line in EMEA and Asia-Pacific recorded declines, sales in the Infrastructure business line were stable. One particular highlight was the significant increase in sales in the area of fish farming systems thanks to successful projects. In contrast, business in the Advertising & Construction and Mobility segments fell short of expectations as they were severely affected by the weak economy.
Annual forecast corrected: Sales and margin targets at the lower end
Despite the stable sales trend, Simona describes the year 2024 as „challenging“. CEO Matthias Schönberg emphasises the impact of intense competition and falling sales prices. The adjusted sales forecast for the year as a whole is now EUR 570-580 million instead of the previous EUR 580-600 million. Simona expects to achieve an EBIT margin of 6-8 % at the lower end and intends to critically review investments and staff expansion.
