Packaging firm SIG has reported an 8.8% increase in core revenue to €950.9 million, from €849.7 million in the same period last year.
The company’s adjusted net income increased to €109.6 million, up from €79.6 million in the first half of 2020.
Net income amounted to €92.0 million, compared with €10.0 million in the same period last year.
Adjusted EBITDA for the period amounted to €264.1 million, including the consolidation of earnings from the Middle East and Africa business since March.
The adjusted EBITDA margin compared increased to 27.3%, up from 25.1% in the first half of 2020, benefiting from operating leverage and lower raw material costs due to hedge contracts entered into during 2020.
These more than offset the impact of higher spot prices for aluminium and polymers, the company added, with lower SG&A (Selling, General and Administrative expenses) costs than the first half of 2020.
Reported EBITDA increased to €283.5 million, compared to €213.9 million in the first half of 2020.
Samuel Sigrist, CEO of SIG Combibloc, said, “In the first half of 2021, we sustained strong revenue growth against a tough base of comparison and in a context of ongoing uncertainty around COVID-19.
“Profitability increased and the business is proving resilient in an inflationary environment.”
SIG reported 13.4% growth in core revenue on a like-for-like basis at constant currency, to €442.0 million, in the first quarter of its financial year.
Divisional Performance
In Europe, revenue in the first half was 1% higher at constant exchange rates, on a like-for-like basis.
Since March, the performance is being measured against a period marked by the onset of the COVID-19 pandemic, which witnessed consumer stockpiling followed by customer and retailer re-stocking.
Although these trends did not continue to 2021, the liquid dairy business continued to benefit from high at-home consumption due to ongoing restrictions.
In the Middle East and Africa, the company saw 2.1% like-for-like growth (constant currency) for the four months to June 2021.
Exceptionally high sales in March were followed by a more muted second quarter, also measured against a very strong second quarter in 2020.
Asia Pacific saw a significant boost in sales from re-stocking in the first quarter, followed by slower growth in the second quarter.
Market conditions in China returned to more normal levels, with robust demand for white milk.
The situation in South-East Asia continues to be impacted by COVID-19, while on-the-go consumption, which plays a key role in these countries, remains constrained, SIG noted.
The Americas saw exceptional growth, with revenue in the USA benefitting from the re-opening of restaurants and re-stocking of foodservice products packed in SIG cartons.
Elsewhere, in Brazil and Mexico, at-home consumption continued to drive demand.
Full-Year Outlook
The company has projected 4% to 6% growth in core revenue on a like-for-like basis for the full year.
Strong first-half performance has opened up the possibility of growth in the upper half of the range, but the company also noted that it will depend on the evolution of COVID-19 related uncertainties in the second half.
The adjusted EBITDA margin is expected to be within the 27% to 28% range, while net capital expenditure is forecast to be within the targeted 8% to 10% of revenue range in 2021 and mid-term.
Sigrist added, “Sustainability continues to be top of mind for us and for our customers. […]We continue to see customer launches involving a switch to carton from PET and the adoption of our formats with enhanced Sustainability.
“Our focus on innovation goes hand-in-hand with our vision of a net positive food packaging system. It means that we will continue to enhance the value of our offering to customers while striving to deliver positive outcomes for both people and the planet.”
