Packaging firm SIG has said that its core revenue was up 6.4% at constant currency levels to €1.64 billion, with adjusted EBITDA margin increasing to 27.5%.
The group said that it posted a 'significant' increase in adjusted net income to €149 million, while cash flow generation was described as 'strong'.
Growth was largely driven by the Asia Pacific region, which saw a 18.0% increase in revenue (at constant currency levels), however the EMEA region fell back by 2.4%. Its Americas region rose by 4.8%.
On the decline in its EMEA business, SIG said that this was due to 'instability in some Middle Eastern markets, which affected sales to the joint venture there, more than offsetting underlying growth in the European business'.
Global Footprint
"We saw growth across our global footprint and are reaping the rewards of our steady expansion into markets outside Europe, where growth in aseptic carton packaging is being driven by mega-trends including demographics, rising disposable income and urbanisation," said Rolf Stangl, CEO of SIG.
"The Asia Pacific region in particular delivered a strong performance during the year, with robust growth in the liquid dairy segment and growing demand for premium products."
Looking ahead to the coming year, SIG is targeting core revenue growth of 4% to 6% at constant currency levels, as well as an adjusted EBITDA margin of 27% to 28%.
“In the mid-term we expect our business to continue to demonstrate its resilience," added Stangl. "This is underpinned by our exposure to non-discretionary consumption of food and beverages, our ongoing expansion in growth markets and the excellent environmental profile of our products."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
