(AOF) – SergeFerrari’s third quarter 2023 turnover amounted to 73 million euros, down 8.3% at current scope and exchange rates and 12.8% at constant scope and exchange rates, compared in the third quarter of the 2022 financial year which had experienced strong commercial performance. This development results from a scope effect of +6.5% (+5.1 million euros), the result of the targeted external growth policy and the contribution of the Solutions activities (biogas, fish-farming and implementation composite materials), and the Markleen company.
It also results from a slightly positive mix-price effect, amounting to +0.9%; a volume effect of -13.6%, mainly linked to the economic situation in the fields of construction, renovation and consumer equipment; and a currency effect of -2.0% and -1.6 million euros.
Over 9 months, its turnover stood at 248.6 million euros, a decline of 0.5% at current scope and exchange rates and 6.1% at constant scope and exchange rates.
On the outlook side, SergeFerrari is making a further adjustment of its objectives for the year 2023. The 2023 turnover should be close to that of 2022 (338.7 million euros). The current operating margin should be close to 3% of turnover.
In mid-September, the group indicated that it was targeting sales growth of 4% compared to 2022 and a current operating profit of between 5% and 5.5% of its 2023 turnover.
The Group has launched its Transform 2025 plan which aims to improve its profitability and the allocation of its resources to its development projects. The group will detail the initiatives taken as part of the plan when it publishes its 2023 annual results in March 2024.
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Nothing is going well for German chemistry
German chemicals, very dependent on Russian gas, are in difficulty. Following sluggish sales in the automotive sector and falling demand in construction, production is down 8.5% in 2022, with overall turnover down 1.6% to 63.1 Billions of Euro’s. Specialty chemistry is doing better. On the other hand, the rate of utilization of production capacities in basic chemicals has slowed significantly to reach less than 80%. The third German industrial sector is tempted by relocation to the United States, where energy costs are much lower. With the Inflation Reduction Act, the United States has established an environment appropriate to current challenges.