Financial report roundup: Winpak, Bobst and SIG records increase in full-year revenues

CANADA – Winnipeg-based packaging manufacturer Winpak has posted a 17.9% increase in revenue to almost US$1.2 billion in FY22, against US$1 billion in FY21.

For the year ended on 25 December, the company’s flexible packaging operating segment saw its volumes rise by 4%, while volumes for its rigid packaging and flexible lidding operating segment fell by 3%.

The volumes of Winpak’s packaging machinery segment were almost equal to the previous year. The company said that selling price and mix changes ‘had a largely favorable impact’ on its revenue.

Its net income was US$128.2 million in 2022, compared with US$106.2 million in 2021, while the net income attributable to its equity holders was US$128.3 million, or US$1.97 for each share.

The latter figure marked the highest level in Winpak’s history and was up by 23.6% from the prior year.

Winpak’s operating expenses, adjusted for foreign exchange, rose by 18.2% last year relative to a 0.6% expansion in sales volumes.

Key variables leading to this increase were heightened freight and distribution costs, as well as higher personnel and expected credit loss expenses.

For the fourth quarter (Q4), Winpak’s revenue grew by 4.8% to US$292.4 million from US$279.1 million in the same period of 2021.

The company’s flexible packaging operating segment recorded a 1% drop in volumes, while volumes for its rigid packaging and flexible lidding operating segment fell by 7%.

Despite this, selling price and mix changes had a positive effect on Winpak’s revenue in Q4 2022.

Winpak said it is ‘well-positioned to build upon the record-setting revenue and profitability levels achieved in 2022’ both this year and in the long term.

Bobst registers 17.8% increase in full-year sales for FY22

Swiss packaging machinery provider Bobst Group has registered full-year consolidated sales of Sfr1.84 billion (US$1.96bn) for fiscal 2022 (FY22), up by 17.8% from fiscal 2021 (FY21).

The company’s sales were driven by ‘strong’ growth in Europe and the Americas, where they rose by 19.1% and 29.8% respectively compared with the prior year.

Bobst’s Business Unit Printing & Converting segment also posted a good performance, with its sales increasing by 22.9% to Sfr1.22 billion (US$1.30bn) during the year.

In a statement, the company said: “The increase was due to higher backlog at the beginning of the year compared to 2021 and again very high order entries during the reporting year.”

Bobst’s Business Unit Services & Performance segment also saw a 9.1% sales growth to Sfr622 million (US$660.56m) in FY22.

The company’s earnings before interest and tax (EBIT) for the year were Sfr141 million (US$149.74m), accounting for 7.7% of its sales.

For fiscal 2023 (FY23), Bobst expects to achieve the same sales result as FY22, while its EBIT margin is expected to be slightly less than that of FY22.

Bobst added: “Customer satisfaction and quality in delivering the backlog will get very high attention in 2023.

“We will likely have a strong year and we will not compromise on quality when delivering the volume increase.”

SIG posts full-year revenue growth of 27.4%, plans to build US$64M cartons site in India

For the year ending 31 December 2022, SIG’s revenue was at €2.7 billion (US$2.87bn) compared to €2 billion (US$2.13bn) in 2021.

The company said that fourth quarter constant currency revenue growth was at 39.9% and its adjusted EBITDA margin was 23.5%.

Samuel Sigrist, chief executive of SIG, said: “In 2022, in line with our ambition to be the global leader in sustainable packaging for liquid food and beverages, we expanded our offering of systems and solutions.

“Following the acquisitions of Scholle IPN and Evergreen Asia, the offering now includes bag-in-box and spouted pouch, as well as chilled carton in Asia, in addition to our full range of aseptic carton solutions.

“The acqui­sitions broaden our platform for growth, with many opportunities to build on our proven strategy of geo­graphic, category and channel expansion.”

The company’s adjusted EBITDA margin was 23.5%  compared to 27.7% in 2021, reflecting dilution from acquisitions, price increases and uncovered cost inflation – continuing to be offset through price increases in 2023.

Adjusted net income in 2022 was €286.8 million (US$304.94m) compared with €265.7 million (US$282.50m) in 2021.

The increase was primarily due to higher adjusted EBITDA, partly offset by incremental depreciation and higher interest expense.

Adjusted EPS was unchanged at €0.79 (US$0.84) per share despite an increase in the number of shares following the acquisitions.

For 2023, the Company expects revenue growth of 20-22% at constant currency. Scholle IPN and Evergreen Asia will be consolidated for an additional five months and seven months respectively.

Organic revenue growth is expected to be 7-9%. Price increases in the carton business are expected to contribute to top-line growth (resin escalators for the bag-in-box and the spouted pouch businesses are not included in the guidance)

The adjusted EBITDA margin is expected to increase by 50-150 basis points, implying a range of 24–25%. The expected improvement compared with 2022 is subject to input cost and foreign exchange volatility.

Meanwhile, the company has announced €60 million (US$63m) investment into the construction of its first aseptic carton plant in India over the next two years,

The plant will be in Ahmedabad, in the state of Gujarat and is expected to reach a production capacity of 4 billion packs per annum.

SIG entered the Indian market in 2018 and said it has seen a rapid expansion of its business.  The plant will supply its growing filler base, which now serves all leading dairy and non-carbonated soft drink players.

Construction is set to begin in the first quarter of 2023, and SIG believes that the first phase will create around 300 jobs. The commencement of commercial production is scheduled for the end of 2024.

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