Packaging firm SIG has reported a 6% year-on-year increase in revenue at constant currency, to €496.7 million, in the first quarter of its financial year.
Adjusted EBITDA amounted to €118.7 million during the quarter, with an adjusted EBITDA margin of 23.9%.
Divisional Performance
Revenue in its European unit increased by 1.0% at constant currency on a comparable basis, excluding the effects of the first-time consolidation of its previous joint venture.
Performance of the division was affected by a strong finish to 2021, as well as limited at-home consumption due to more people returning to offices.
The company saw growth accelerating in March, mainly due to price increases.
The company continued the installation of new fillers at its plant in Hochwald, Germany, and hopes to complete the renovation in the second and third quarters of this year.
In the MEA region, revenue grew by 8.8% at constant currency, excluding the impact of first-time consolidation.
The business continued to recover from the negative impact of COVID-19 restrictions during the quarter and is benefiting from the contribution of new filler placements.
The company's Asia Pacific division reported revenue growth of 6.5% at constant currency, excluding the impact of the Whakatane paper mill divestment, with both China and South-East Asia witnessing robust growth.
In China, seasonal consumption benefited from a rebound in Chinese New Year activities and the ramp-up of new filler placements, SIG added.
Elsewhere in the Asia Pacific region, Indonesia, Thailand and India witnessed strong growth in this period.
The company's American business reported 5.5% growth in revenue at constant currency, with Brazil continuing its good performance, boosted by the placement of new fillers with existing customers.
Outlook
The company retained its previous guidance of revenue growth between 22% to 24% at constant currency.
SIG expects its business in Russia and Ukraine to be impacted by the war and the related sanctions.
In 2021, sales from Russia and Ukraine amounted to less than 2% of group revenue, it added.
The company expects the most recent sanctions to impact the full-year growth rate by approximately 100 to 150 basis points.
© 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.
