SIG Group AG / CH0435377954
29.10.2024 - 07:00:24SIG Group AG: Continued carton strength, improving performance at bag-in-box and spouted pouch
| SIG Group AG / Key word(s): Quarterly / Interim Statement 29-Oct-2024 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. MEDIA RELEASE October 29, 2024 Third quarter and nine months 2024 trading update Continued carton strength, improving performance at bag-in-box and spouted pouch Q3 2024 revenue growth, at constant currency, +5.1% (constant currency and constant resin[1],[2] + 4.6%) 9M 2024 revenue growth, at constant currency, +3.7% (constant currency and constant resin1,[3] + 3.5%) Q3 2024 adjusted EBITDA margin 25.0% (Q3 2023: 24.8%) 9M 2024 adjusted EBITDA margin 24.0% (9M 2023: 24.9%) 2024 and mid-term guidance confirmed Samuel Sigrist, CEO, said: “We are pleased to report an increase in revenue of 5.1%, at constant currency, for Q3 2024, or 4.6% at constant currency and resin. This demonstrates the resilience embedded in our business through our global footprint with exposure to high growth emerging markets, the strength of our product categories and our ability to drive expansion through our differentiated technology. SIG remains well positioned to outpace market growth. The bag-in-box operations experienced a notable improvement in revenue performance during the third quarter, and we anticipate further progress in the final quarter of the year. Capacity constraints at our facilities in the US are easing as we address the production challenges.” Key performance indicators
Europe For the first nine months of 2024, revenue growth in Europe was 6.4% on a constant currency basis, or 6.6% on both a constant currency and constant resin basis. The strong performance in carton has been driven by the ramp-up of previous filler placements, supporting the region's gain in share of the aseptic carton market, and an increase in milk supply for aseptic processing. Growth is expected to normalize from the fourth quarter onwards. Bag-in-box and spouted pouch revenue growth in quarter three was driven by a low base effect in the prior year and the contribution from new business during the quarter. India, Middle East and Africa For the first nine months of 2024, revenue growth in India, Middle East and Africa (IMEA) was 13.9% on a constant currency basis, or 14.0% on both a constant currency and constant resin basis. In the third quarter, the region continued to benefit from strong customer demand in carton in Egypt and Saudi Arabia. In India, the Group has increased its share of the aseptic carton market due to the ramp-up of newly installed filling machines. The Group’s first aseptic sleeves plant in Ahmedabad, state of Gujarat, India is on schedule to commence production by the end of 2024. Asia Pacific For the first nine months of 2024, revenue growth for Asia Pacific was 1.2% on a constant currency basis, or 1.3% on both a constant currency and constant resin basis. In the third quarter, revenue declined by 1.3%. This was against a double-digit prior year performance and a subdued economic environment in China, which impacted demand for carton. Indonesia and Vietnam benefited during the period from the ramp-up of new fillers in carton. Overall, the region continues to gain share in the carton market due to SIG’s ability to adapt packaging sizes to enable affordable consumer prices in a softer demand environment. Americas For the first nine months of 2024, revenue declined in the Americas by 1.2% on a constant currency basis, or by 2.5% on both a constant currency and constant resin basis. Following a return to growth in the second quarter, the third quarter saw a further improvement with growth of 4.3%. This included a meaningful improvement for bag-in-box and spouted pouch. Demand for foodservice in North America has not yet recovered. However, there was strong demand for carton in dairy in Mexico and for food products for at-home-consumption in the US. In addition, the region won its first carton customer in Columbia and further expanded its customer base in Chile. Debottlenecking in the North American bag-in-box operations has helped ease capacity constraints during the quarter and has improved operating efficiency. Adjusted EBITDA Adjusted EBITDA for the first nine months of the year amounted to €575.4 million (9M 2023: €581.7 million). The adjusted EBITDA margin of 24.0% for the nine months (9M 2023: 24.9%) was impacted by unfavorable currency movements, which reduced the margin by 50 basis points. Top line contribution continued to gain momentum and raw material costs further benefited from lower hedged prices for polymers and aluminum. Production costs for the first nine of months of 2024 primarily reflected operational challenges in bag-in-box facilities in North America, while higher SG&A expenses were driven by investments in growth, wage inflation and phasing of project-related costs. The table below details the reconciliation of profit for the period to EBITDA and adjusted EBITDA:
Ingrid McMahon Director Investor Relations Tel: +41 52 543 1224 Email: ingrid.mcmahon@sig.biz Media contact: Andreas Hildenbrand Lemongrass Communications Tel: +41 44 202 5238 Email: andreas.hildenbrand@lemongrass.agency About SIG SIG is a leading solutions provider of packaging for better – better for our customers, for consumers, and for the world. With our unique portfolio of aseptic carton, bag-in-box, and spouted pouch, we work in partnership with our customers to bring food and beverage products to consumers around the world in a safe, sustainable, and affordable way. Our technology and outstanding innovation capabilities enable us to provide our customers with end-to-end solutions for differentiated products, smarter factories, and connected packs, all to address the ever-changing needs of consumers. Sustainability is integral to our business, and we strive to create a net positive food packaging system. Founded in 1853, SIG is headquartered in Neuhausen, Switzerland, and listed at the SIX Swiss Exchange. The skills and experience of our approximately 9,000 employees worldwide enable us to respond quickly and effectively to the needs of our customers in over 100 countries. In 2023, SIG produced 53 billion packs and generated €3.2 billion in revenue. SIG also has an AA ESG rating by MSCI, a 13.9 (low risk) score by Sustainalytics, Platinum CSR rating by EcoVadis, and is included in the FTSE4Good Index. For more information, visit Packaging systems and solutions for better - for better For insights into trends that drive the food and beverage industry, visit the SIG blog. Disclaimer and cautionary statement The information contained in this media release and in any link to our website indicated herein is not for use within any country or jurisdiction or by any persons where such use would constitute a violation of law. If this applies to you, you are not authorised to access or use any such information. This media release contains “forward-looking statements” that are based on our current expectations, assumptions, estimates and projections about us and our industry. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words “may”, “will”, “should”, “continue”, “believe”, “anticipate”, “expect”, “estimate”, “intend”, “project”, “plan”, “will likely continue”, “will likely result”, or words or phrases with similar meaning. Undue reliance should not be placed on such statements because, by their nature, forward-looking statements involve risks and uncertainties, including, without limitation, economic, competitive, governmental and technological factors outside of the control of SIG Group AG (“SIG”, the “Company” or the “Group”), that may cause SIG’s business, strategy or actual results to differ materially from the forward-looking statements (or from past results). For any factors that could cause actual results to differ materially from the forward-looking statements contained in this media release, please see our offering circular for the issue of notes in June 2020. SIG undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. It should further be noted that past performance is not a guide to future performance. Please also note that quarterly results are not necessarily indicative of the full-year results. Persons requiring advice should consult an independent adviser. The declaration and payment by the Company of any future dividends and the amounts of any such dividends will depend upon SIG’s ability to maintain its credit rating, its investments, results, financial condition, future prospects, profits being available for distribution, consideration of certain covenants under the terms of outstanding indebtedness and any other factors deemed by the Directors to be relevant at the time, subject always to the requirements of applicable laws. The information contained in this media release is not an offer to sell or a solicitation of offers to purchase or subscribe for securities. Some financial information in this media release has been rounded and, as a result, the figures shown as totals in this media release may vary slightly from the exact arithmetic aggregation of the figures that precede them. In this media release, we utilize certain alternative performance measures, including but not limited to EBITDA, adjusted EBITDA, adjusted EBITDA margin, net capex, adjusted net income, free cash flow and net leverage ratio that in each case are not defined in IFRS accounting standards. These measures are presented as we believe that they and similar measures are widely used in the markets in which we operate as a means of evaluating a company’s operating performance and financing structure. Our definition of and method of calculating the alternative performance measures stated above may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS accounting standards or other generally accepted accounting principles, are not measures of financial condition, liquidity or profitability and should not be considered as an alternative to profit from operations for the period or operating cash flows determined in accordance with IFRS accounting standards, nor should they be considered as substitutes for the information contained in our consolidated financial statements. You are cautioned not to place undue reliance on any alternative performance measures and ratios not defined in IFRS accounting standards included in this media release. Alternative performance measures For additional information about alternative performance measures used by management that are not defined in IFRS accounting standards, including definitions and reconciliations to measures defined in IFRS accounting standards, please refer to the link below: https://www.sig.biz/en/investors/financial-definitions Additional features: File: SIG_Q324_241029_English End of Inside Information | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Language: | English |
| Company: | SIG Group AG |
| Laufengasse 18 | |
| 8212 Neuhausen am Rheinfall | |
| Switzerland | |
| Phone: | +41 52 674 61 11 |
| Fax: | +41 52 674 65 56 |
| E-mail: | info@sig.biz |
| Internet: | www.sig.biz |
| ISIN: | CH0435377954 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 2017573 |
| End of Announcement | EQS News Service |
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