Packaging firm SIG has posted a 8.4% increase in revenue in the first quarter of its financial year (at constant currency levels), with a sales boost recorded across all the group's main divisions.
In its EMEA division, revenue was up 3.1%, in APAC, it rose by 6.2%, and in its Americas region, revenue rose by 34.2%.
Regional Performance
In its EMEA division, SIG said that revenue growth was drive by the 'ongoing benefit of new customer wins' and filler placements, as well as higher at-home consumption due to COVID-19 lockdowns.
In its APAC region, sales in China were stable compared to the same period the previous year, with many consumers stocking up from early in the year due to the coronavirus effect.
It noted that growth in the APAC division was boosted by the consolidation of Visy Cartons, which was acquired in November 2019.
In its Americas division, the group registered a 'strong performance', due to positive sales to dairy customers in Mexico and the deployment and ramping up of new fillers in Brazil.
The company said that adjusted EBITDA for the quarter was €83.7 million, slightly lower than the corresponding period last year due to the depreciation of the Brazilian Real and the Thai Baht.
COVID-19 Effect
Looking ahead to the remainder of the year, the group said that it is not possible to 'reliably predict' the effects of the COVID-19 crisis or currency movements on its business, adding that the second quarter is likely to be 'weak'.
Commenting on its performance, as well as the effect of COVID-19 on its operations, Rolf Stangl, CEO of SIG Combibloc said, " “Like all companies, we have faced unprecedented challenges due to the Covid-19 crisis. The health and safety of all employees has been – as ever – our priority throughout this period. We implemented a pandemic preparedness plan early on to protect our employees and prevent infections, with a coordinated network of global and regional task forces.
"To ensure supply continuity, we built up safety inventories at all levels, from raw materials through to finished goods. As a result of the measures taken, all our factories continued production in the quarter without interruption."
© 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.
