Packaging firm SIG has reported 5.5% growth in core revenue at constant currency levels, to €1.8 billion, in its financial year 2020.
The company described this growth as an illustration of the portfolio effect created by the deliberate geographic diversification of its business over the past few years.
Adjusted EBITDA increased to €498.3 million, from €485.4 million in 2019, with a margin of 27.4% (2019: 27.2%).
The company’s adjusted net income grew 6.9% year-on-year (on a reported basis) to €232.3 million, up from €217.4 million in 2019.
Commenting on the company’s performance, CEO of SIG Combibloc, Samuel Sigrist, said, “As we look back on the unprecedented events of 2020, we can be proud of what SIG has achieved.
“The year was proof of the robustness of our business model and the resilience of our end markets.”
The company has also proposed a dividend increase of over 10% to CHF0.42 per share.
Divisional Performance
The packaging firm’s divisions across all regions contributed to its growth on a constant currency basis, it said.
Its American and Asia-Pacific units saw revenue declines on a reported basis due to the depreciation of local currencies against the Euro.
In addition, its APAC division, where a large proportion of sales are for on-the-go consumption, was affected by coronavirus-induced lockdowns.
The EMEA division reported 5.6% growth in revenue to €797.5 million.
The strong constant currency growth in Europe (+5.6%) and the Americas (+14.7) reflected increased at-home consumption during COVID-19 lockdowns, the company added.
Outlook
SIG will continue to focus on profitable growth by expanding its business with existing and new customers and further developing sustainable solutions.
In November 2020, SIG Combibloc signed an agreement to take full ownership of its Middle East and Africa joint venture SIG Combibloc Obeikan by acquiring the 50% shareholding of its partner Obeikan Investment Group (OIG).
This year, the company expects to fully consolidate revenues in the Middle East and Africa from the beginning of March, subject to the completion of this transaction.
SIG maintained its medium-term guidance of core revenue growth of 4% to 6% at constant currency and an adjusted EBITDA margin of around 29%.
Net capital expenditure should remain within 8–10% of revenue, the company added.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
