GERMANY – The Surteco Group SE, the holding company for leading national and international brands in decorative surface technology, made a solid start to the 2019 financial year despite the difficult environment.

From January to March, Group sales amounted to EUR 181.9 million, down 3% as expected, from the high level of the previous year of EUR 186.7 million. The company achieved earnings before interest and taxes (EBIT) of EUR 11.6 million (1Q-2018: EUR 13.4 million). In view of the improved financial result, pre-tax profit amounted to EUR 10.6 million (1Q-2018: EUR 11.0 million) and consolidated net income to EUR 7.6 million (1Q-2018: EUR 8.0 million). Against the background of the cost-efficiency measures initiated in the previous year, Surteco confirms the full-year forecast for 2019.

“In the face of the challenging environment, we made a solid start to 2019. We have done our homework on the cost side and see some opportunities for a slight easing on the commodities side as well, confirming our full-year target, an EBIT of 38 EUR 40 million”, commented Herbert Müller, the CEO of Surteco Group SE.

The product portfolio of the Surteco Group comprises edge bandings and finish foils based on paper and plastics, decorative printings, impregnated products, release papers, skirtings, roller shutter systems and technical profiles. The product portfolio has recently been grouped in three segments: Decoratives, Profiles and Technicals, and for the first time, 1Q of 2019 reports according to the aforementioned segments.

Analyzing the development of the three segments reveals a differentiated picture. While in line with expectations Decoratives with sales of EUR 129.4 million (1Q 2018: EUR 133.8 million) and Technicals at EUR 27.9 million (1Q 2018: EUR 30.4 million) remained below the level of the previous year due to of the current weak sector development, Profiles continued its upward trajectory. Sales in this segment climbed from EUR 22.6 million to EUR 24.6 million. Plans are in place for this segment to generate further dynamic growth both organically and through acquisitions over the coming years.