Packaging business SIG Combibloc Group has posted revenue growth of 5.1% in the first half of its financial year, at constant currency levels, to €794.5 million.
The group said that its performance was driven by 'good topline growth' in the markets that have been the focus of its investment in revenue years: Asia Pacific and the Americas.
Adjusted EBITDA stood at €205.5 million for the half-year period, while adjusted EBITDA margin was 25.6%.
'Target Range'
"Core revenue growth at constant currency of 5.1% is within our target range for the full year of 4-6%," commented Rolf Stangl, the group's chief executive. "Profitability improved in the second quarter and the H1 adjusted EBITDA margin was only slightly below the H1 2018 level, despite a reduction in the dividend from our Middle East joint venture."
Growth in the group's Americas operations was up 10.7% to €144.5 million in the first half, while Asia Pacific was up 7.7% to €284.1 million.
EMEA, its largest region in terms of sales, posted a 0.3% increase in sales to €358.2 million.
Robust Demand
On the performance of its Asia Pacific operations, Stangl added, "Growth in Asia Pacific has been driven by robust demand for liquid dairy products, augmented in many South East Asian countries by consumption of non-carbonated soft drinks.
"In order to meet growing demand for our packs we will construct a new plant at the Suzhou Industrial Park in China, close to our existing facilities," he added. "The investment will be partly lease-financed and does not change our guidance for net capital expenditure."
Capital expenditure at the business was €86.7 million in the first half of its financial year, with net capital expenditure, after deduction of upfront cash for fillers received from customers, was €61.2 million, compared with €88.1 million in the first half of last year.
Given the Suzhou investment, it said that it expects capital expenditure to be at around 8% to 10% of revenue over the next couple of years, with the new plant expected to come on stream in early 2021.
Looking ahead to the full year, the group said that it anticipates core revenue growth of between 4% and 6% at constant currency levels, and an adjusted EBITDA margin of 27% to 28%.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
