NORWAY – Global supplier of carton packaging and filling equipment Elopak has reported revenue growth of 7% in Q2 of 2022.
The growth has been supported by price increases and successful onboarding of Naturepak. This was achieved despite the discontinued operations in Russia.
Elopak’s revenue has increased to €259 million (US$263.42 million), driven by growth in Europe Middle East and Africa (EMEA), and the Americas.
The packaging giant also reported a new €12 million(US$12.20 million) from acquired businesses in MENA and India was EUR in the quarter.
The company’s adjusted EBITDA was €25.3 million (US$25.73 million), reflecting an adjusted EBITDA margin of 9.8%.
Commenting on the performance, Elopak CEO Thomas Körmendi said: “I am pleased to announce strong revenue growth and profitability for Elopak in the second quarter.
“We are actively mitigating the unprecedented raw material prices and the challenging business environment. We expect margins to improve in the second half of 2022.”
The leverage ratio increased to 3.4x as of second quarter of 2022, primarily driven by dividend payment in May and lower Last Twelve Months’ EBITDA compared to last year.
Elopak completed the acquisition of GLS Elopak to supply Roll Fed and Pure-Pak cartons to the Indian market.
Körmendi said: “At Elopak, we are committed to delivering on our sustainability-driven growth strategy. We are very excited about entering India in a partnership with leading Indian packaging provider GLS, positioning Elopak in one of the world’s biggest and fast-growing markets.
“Further, the second quarter saw the post-merger integration and full first quarter of Naturepak operations as part of the Elopak Group.”
Körmendi further explained that the company is implementing different value-enhancing initiatives across all markets, aimed at improving both its top- and bottom-line.
As of 30 June 2022, Year to date revenue increased by 8%, to €502.5 million (US$ 511.08 million). Year to date adjusted EBITDA was €52.3 million (US$53.19 million), reflecting a 10.4% margin.
Every quarter ahead of the earnings announcement, Elopak collects earnings estimates from the equity analysts currently covering Elopak.
Orora packaging delivers 14.6% EBIT growth and 28.2% earnings per share growth
The company has reported sales revenue of US$4,090.8 million, up 15.6% (up 13.0% on a constant currency basis).
Net profit after tax before significant items (Underlying NPAT) of US$187.1 million, up 19.4% (up 17.6% on a constant currency basis).
The company’s underlying earnings per share (EPS) of 21.7 cents per share (cps), up 28.2% while underlying earnings before interest and tax (EBIT) of US$285.5 million, up 14.6% (up 12.7% on a constant currency basis).
Final ordinary dividend declared of 8.5 cps, with total FY22 dividends declared of 16.5 cps, up 17.9%, representing a dividend payout ratio of 76.2%.
The company experienced strong revenue and earnings growth in North America, with EBIT up 32.6% on a local currency basis, and solid earnings in Australasia with EBIT in line with forecast and broadly flat
In addition, the company has realized a strong balance sheet with net debt of US$629.0 million, up US$176.1 million, and leverage of 1.8 times EBITDA, up 0.3x.
“Orora has delivered a strong result for the fiscal year 2022, reflecting the disciplined execution of our strategic priorities in the face of global supply chain and inflationary challenges,” concluded Brian Lowe, Managing Director and Chief Executive Officer of Orora.
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