Packaging company SIG has posted a 12.4% year-on-year increase in revenue at constant currency, to €1.1 billion, in the first half of its financial year.
Adjusted EBITDA increased to €280.5 million in this period, including an initial contribution from Scholle IPN in June, while adjusted EBITDA margin was 24.6%, down from 27.3% in the same period last year, due to higher raw material and freight costs.
EBITDA for the period amounted to €238.0 million, down from €283.5 million in the first half of 2021.
The company attributed this decline to acquisition and integration costs and the impact from derivatives that are part of the hedging strategy for currencies and commodities.
Samuel Sigrist, CEO of SIG Group, commented, "Our business performed strongly in the first half of the year despite the volatile environment. Organic growth, including both volume and price increases, was robust and accelerated in the second quarter, especially when compared with an exceptional first half of 2021. Price increases were implemented across all regions, and in the second quarter revenue growth offset the impact of higher raw material costs."
Divisional Performance
In Europe, revenue grew by 3.5%, excluding the impact of the first-time consolidation of the previous MEA joint venture and the one-month contribution from Scholle IPN.
The consolidation of Scholle IPN contributed €12.5 million to revenue generated by the division.
In the second quarter, revenue growth in Europe was driven by price increases, while volume growth was boosted by higher on-the-go consumption of non-carbonated soft drinks and continuing expansion into plant-based dairy alternatives.
In the Middle East and Africa, revenue grew by 16.8% at constant currency in the first half, with stronger growth in the second quarter.
This data excludes the effect of the first-time consolidation of the former MEA joint venture, SIG noted.
Revenue in the Asia-Pacific region increased by 7.6% at constant currency, excluding the impact of the Whakatane paper mill divestment and the one-month contribution from Scholle IPN.
The company's American business witnessed revenue growth of 7.7% at constant currency, excluding the effects of the Scholle IPN acquisition.
Sigrist stated, "We completed the acquisition of Scholle IPN on 1 June and I am very pleased to extend a warm welcome to all our new employees. Evergreen Asia is on track to close in the third quarter.
"These acquisitions expand our platform and cement our position as a leading solutions provider for sustainable liquid food and beverage packaging. The integration of Scholle IPN is well underway and our teams are working together to realise the many commercial and technology opportunities which have opened up."
Outlook
The company upheld its guidance provided on 1 March 2022 and expects revenue growth of 22%-24% at constant currency.
The adjusted EBITDA margin for the enlarged group is expected to be around 26%, subject to no further major movements in input costs and foreign exchange rates, SIG added.
Net capital expenditure is forecast to be within 7%-9% of revenue, and the dividend pay-out ratio is expected to be within, or slightly above, a range of 50-60% of adjusted net income.
© 2022 European Supermarket Magazine – your source for the latest packaging news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
