GERMANY - Surteco Group SE, holding company for leading national and international brands of decorative surface technology, succeeded in increasing sales by 3,3 percent compared with first half year 2022 to EUR 428.8 million on the back of integration of sales from the acquisition of the Omnova divisions in March 2023.

However, a significant reduction in demand, particularly in Europe and North America, and one-off costs in connection with the Omnova acquisition and the purchase price allocation (PPA) exerted a negative impact on the result.

The company introduced measures in the areas of pricing, personnel, purchasing, operations and working capital in order to improve earnings. However, additional one-off restructuring expenses will be incurred in the second half year of 2023. All the measures are designed to achieve sustained EBITDA above EUR 110 million before one-off effects starting from the business year 2024.

“In the original forecast, we assumed a revival of demand in the second half year of 2023. Unfortunately, the trajectory in the important markets of Europe and North America is trending in a different direction. As a consequence, we have put together a comprehensive package of measures in order to take decisive action and provide a counterweight,” commented Wolfgang Moyses, Chairman of the Management Board of Surteco Group SE.