EQS-News

KAP DEVELOPS IN LINE WITH ADJUSTED EXPECTATIONS IN A DIFFICULT ENVIRONMENT IN 2023 AND IMPLEMENTS FURTHER MEASURES TO INCREASE EFFICIENCY IN 2024 - Seite 2

Marten Julius, member and Spokesman of the Management Board of KAP AG: “2023 was dominated by geopolitical tensions, rising energy costs and adverse economic factors. Although we have developed in line with our adjusted expectations, we cannot be satisfied with our earnings for the year. We have already made structural adjustments to make the KAP Group and its segments even more efficient and leaner and to increase profitability again. In any case, we have to constantly challenge our position in order to remain competitive in the long term. In light of the measures already largely implemented, we are optimistic about KAP’s development in the current financial year.”

Heterogeneous business development in the segments
Revenue in the flexible films segment decreased by 44.5% year on year to €98.3 million. On a comparable basis, that is excluding the companies divested in April 2023, revenue was down 24.8%. The development in the reporting year is primarily due to the sluggish sell-off of our customers’ high inventories and the general slowdown in the construction industry. Having said that, the megatrends of climate change and demographic change as well as the declining number of public swimming pools will have a positive impact on the development of this segment in the long term. The first signs of a trend reversal were already noticeable at the end of 2023 in the form of rising order volumes. Normalised EBITDA decreased by 56.3% to €9.8 million (previous year: €22.4 million), down 21.4% on a comparable basis. 

In the engineered products segment, both revenue and normalised EBITDA fell significantly. This is primarily due to the economic influences in the automotive sector and the expiry of a high-margin customer contract at the end of 2022. At €116.7 million, revenue was 19.9% below the previous year’s figure, while normalised EBITDA came to €3.1 million (previous year: €9.2 million). Extensive structural adjustments to further increase production efficiency and streamline organisational structures have already been initiated.