EUROPE – Swiss packaging company SIG and Norway-based supplier of carton packaging and filling equipment Elopak have reported growth in revenue for the Q3 of FY22.
SIG records revenue of US$764 million Q3 of FY22
Switzerland-based packaging company has recorded revenue of US$764.98 million (€770.8m) for the third quarter (Q3) of fiscal 2022 (FY22).
The figure represents a 52.1% increase on a reported basis and a 41.2% growth on a constant currency basis from the same period of fiscal 2021 (FY21).
In the three months to 30 September, SIG‘s European business registered revenue of US$227.97 million (€229.7m), an increase of 28.6% on a constant currency basis compared with Q3 2021.
The company’s Middle East and Africa (MEA) and Asia-Pacific (APAC) operations recorded 18.1% and 20.2% revenue growth, respectively.
Its Americas operations recorded the highest revenue growth in Q3 2022, at 112.5%.
Scholle IPN and Evergreen Asia, two companies acquired by SIG this year, contributed US$185.59 million (€187m) to its revenue in the quarter.
SIG’s net income dropped significantly in Q3 2022 to US$9.23 million (€9.3m) from US$36.13 million (€36.4m) a year earlier.
The company’s adjusted net income for the quarter was US$68.18 million (€68.7m), against US$60.14 million (€60.6m) in Q3 2021.
Its earnings before interest, tax, depreciation and amortization (EBITDA) stood at US$123.66 million (€124.6m), while its adjusted EBITDA grew to US$177.45 million (€178.8m) from US$136.06 million (€137.1m) a year previous.
In a statement, SIG said: “In the second half of the year, the Group is experiencing higher costs compared with the same period in 2021.
“The contribution of price increases has been accelerating although, as the increases are staged, they offset cost inflation with a lag.
“The realization of higher price increases in both the aseptic carton business and at Scholle Ipn protects absolute adjusted EBITDA but compresses margin.
“In view of these factors, the full-year margin is expected to be around 25%, rather than around 26%, a strong outcome in the current market context.”
For the full year, SIG expects its revenue to exceed its guided range of 22-24% at constant currency rates.
Elopak records growth in revenue
Meanwhile, Norway-based company, Elopak has reported a 26% revenue growth in Q3, driven by successful price initiatives in EMEA and another strong performance in the Americas.
The company’s Adjusted EBITDA grew by 7%, despite higher input costs.
Elopk’s organic growth was 15.2% adjusted for currency translation of US$13.80 million (€13.9m) and new revenue from acquired businesses of US$12.01 million (€12.1m).
Commenting on Elopak’s performance in the quarter, CEO Thomas Körmendi said: “I am pleased to announce yet another quarter of strong revenue growth for Elopak.
“These results demonstrate how we continue to make tangible progress in delivering on our sustainability-driven growth strategy.
“Key achievements in Q3 include a very strong performance in Americas, successful implementation of price increases on our products in EMEA, first installation at customer site of our new aseptic Pure-Fill machine, and a better than expected start to our new business in India.”
As of September 30, 2022, Year to date revenue increased by 18%, to US$750.89 million (€756.6m). Year-to-date adjusted EBITDA was US$82.87 million (€83.5m), reflecting a 11.0% margin.
Every quarter ahead of the earnings announcement, Elopak collects earnings estimates from the equity analysts currently covering Elopak.
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