Packaging firm SIG has posted a 2.5% increase in revenue at constant currency levels in its EMEA operations, offsetting a 2.0% decline in its Asia Pacific arm.
The group said that revenue at its EMEA business stood at €194.4 million, up from €189.6 million last year, with an increase in demand for cartons evident in September, as production got back up to speed across its client network.
'Signs Of Improvement'
In Asia Pacific, while the business saw 'signs of improvement' in China, its South-East Asia business continued to be affected by pandemic-related restrictions, it said, as well as the effect of COVID-19 on out-of-home consumption.
The company's Americas division was the largest regional growth driver in the period, seeing a 24.1% increase in revenue on a constant currency basis (+2.0% reported currency), driven by an increase in at-home consumption in Brazil and Mexico.
Despite negative currency effects, largely in its Americas region, SIG saw its adjusted EBITDA rise to €133.6 million, up from €123.8 million in the same period last year. Adjusted EBITDA margin increased to 30.2% (up from 27.7%), 'reflecting top line growth, production efficiencies and lower raw material costs', the company said.
Free cash flow generation saw a 'significant increase' in the quarter, compared with the same period last year, despite higher capital expenditure due to the construction of a new plant in China.
'Remain Cautious'
Looking ahead to the remainder of the year and beyond, the company said that it 'remains cautious', with the typical year-end rally likely to be more subdued this year.
'At group level, fourth quarter sales at constant exchange rates are expected to be broadly flat compared with the fourth quarter of 2019,' it said in a statement. 'For the full year, guidance of core revenue growth at constant currency within the 4–6% range is maintained.'
It noted that further lockdowns and other measures to contain the spread of COVID-19 remain a 'source of uncertainty'.
© 2020 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.
