Packaging firm SIG has reported 15% year-on-year growth in core revenue (+6% like-for-like) on a constant currency basis, to €2.1 billion, in its financial year 2021.
EBITDA for the financial year amounted to €570.6 million, with adjusted EBITDA margin increasing to 27.7% from 27.4% in the previous financial year.
Adjusted net income increased by €20.1 million to €252.4 million in 2021.
Commenting on the group's performance, Samuel Sigrist, CEO of SIG, said, “In 2021, we sustained strong revenue growth throughout the year. Our performance globally not only reflects the resilience of our business – it is also testimony to our teams who have worked tirelessly to ensure flawless service and an ongoing stream of innovation for customers.
“The strong top-line growth was accompanied by an increase in the adjusted EBITDA margin, which was achieved despite higher raw material costs in the second half of the year. In recent years, we have demonstrated our ability to maintain best-in-class profitability in the face of foreign exchange as well as raw material headwinds.”
Performance By Region
The company witnessed revenue growth in all regions, with Europe seeing an increase of 2.1% at constant exchange rates on a like-for-like basis.
The division continued to benefit from a relatively high level of demand as people continued to work from home, SIG noted.
In the Middle East and Africa, like-for-like constant currency growth for the 10 months to December 2021 was 0.8%, as the closure of schools and lower out-of-home consumption impacted the non-carbonated soft drinks market.
In addition, drought in South Africa in the first half of the year temporarily affected the company’s liquid dairy business.
Core revenue growth in the Asia Pacific division reached 8.2% on a like-for-like constant currency basis, as markets returned to normal levels and demand for white milk increased.
The American division reported 19.4% growth at constant currency, boosted by fillers deployed in Brazil in 2020.
At-home consumption continued to drive demand in both Brazil and Mexico, SIG added.
Revenue in the USA benefited from the re-opening of restaurants and higher consumption of foodservice products packed in SIG cartons.
The company expects revenue growth of 22% to 24% at constant currency in 2022, with approximately 15% coming from acquisitions.
The forecast includes the consolidation of the Scholle IPN and Evergreen Asia businesses from 1 July 2022.
The adjusted EBITDA margin is expected to be around 26%, assuming no further major movements in input costs and foreign exchange rates.
Net capital expenditure is forecast to be within a range of 7-9% of revenue, and the dividend payout ratio is expected to be within, or slightly above, a range of 50-60% of adjusted net income, SIG added.