Packaging manufacturer SIG has said that efforts to grow its business outside of Europe have reaped rewards for the business, as it reported a 5.2% increase in full-year revenue at constant currency levels.
Revenue for the year was €1.77 billion, which was up 7.5% on a reported basis (2018: €1.64 billion).
Adjusted EBITDA for the period was €485.4 million, an increase of 5.2%, while there was as 'significant increase in adjusted net income' for the period, the group said, to €217 million.
Top Line Performance
“Our top line performance in 2019 demonstrates the success of our growth strategy, which for many years has focused on building up markets outside Europe," commented Rolf Stangl, SIG's chief executive.
"At the same time, we are proving our ability to grow in the EMEA region through share gain in Europe and our presence in the Middle East and Africa, which in 2019 saw an improved economic environment in a number of countries."
During the full-year period, SIG announced the construction of a new production facility in China, at Suzhou Industrial Park, which will "underpin growth across the Asia Pacific region", Stangl added.
It also acquired Visy Cartons, which the group said will give it a 'promising footprint' in Australia and New Zealand.
On a regional basis, revenue at its EMEA division was up 2.8% at constant currency levels, while APAC was up 6.0%, and Americas was up 9.7%.
For 2020, the company expects core revenue growth at constant currency towards the lower end of a 6% to 8% range, including the full year consolidation of Visy Cartons, it added.
Key Fundamentals
"Our business is sustained by key fundamentals including growing end markets driven by demographics, urbanisation and rising disposable incomes; proprietary technology and engineering know-how supporting longstanding customer relationships; and the unmatched environmental profile of our packs, which are made largely of renewable materials and are fully recyclable," Stangl added.
"In 2020, we shall continue to seize the many opportunities that our industry offers and to pursue our objective of above market growth.”
© 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.
