Continued growth momentum
First quarter 2019 highlights
- Core revenue up 5.4% at constant exchange rates; up 7.3% as reported
- Adjusted EBITDA slightly higher; adjusted EBITDA margin 23.6% (Q1 2018: 24.7%)
- Significant increase in adjusted net income to €29.1 million (Q1 2018: €4.0 million) reflecting lower financing costs post-IPO
- Full year guidance unchanged
In the first quarter of 2019, core revenue increased by 5.4% at constant currency, within the target range for the full year of 4 - 6%. Growth was driven in particular by Asia Pacific which, after a strong performance throughout 2018, continued to show good momentum for liquid dairy products across the region. Growth was also robust in the Americas, with business in Brazil benefiting from volume growth with key customers and from recent filler deployments. Sales in Europe increased reflecting new customer wins, more than offsetting a lower contribution from the Middle East joint venture within the EMEA region.
EBITDA
Adjusted EBITDA increased by 0.6% to €85.9 million. The adjusted EBITDA margin was 23.6% (Q1 2018: 24.7%), reflecting the impact of a lower dividend from the Middle East joint venture. The adjusted EBITDA margin is generally below the full year average in the first quarter, which is typically the quarter with the lowest sales level.
EBITDA increased by 20.2% to €88.3 million. The increase was largely due to an unrealised gain on derivatives compared with a loss in Q1 2018. For more detail see page 4.
Net income
Adjusted net income increased to €29.1million compared with €4.0 million in Q1 2018. The increase reflected an improvement in net income, which moved from a loss of €32.1 million in Q1 2018 to a profit of €4.7 million in Q1 2019. The improvement is a consequence of lower net finance expense following the
reduction and re-financing of debt at the IPO.1
1The positive impact of lower net finance expense on adjusted net income has been flagged through adjusted net income on 26 February 2019 (Annual Report p. 20 and Full Year Results Media Release).
Full year outlook
SIG continues to implement its growth strategy and its 2019 guidance of core revenue growth of 4 - 6% at constant currency and an adjusted EBITDA margin of 27 - 28% is unchanged.
Investor contact:
Jennifer Gough
+41 52 674 6508
Director Investor Relations
SIG Combibloc Group AG
Neuhausen am Rheinfall, Switzerland
jennifer.gough@sig.biz
Media contact:
Lemongrass Communications
Andreas Hildenbrand
+41 44 202 5238
andreas.hildenbrand@lemongrass.agency
About SIG
SIG is a leading systems and solutions provider for aseptic carton packaging. 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 unique technology and outstanding innovation capacity 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.
Founded 1853, SIG is headquartered in Neuhausen, Switzerland. The skills and experience of our approximately 5,000 employees worldwide enable us to respond quickly and effectively to the needs of our customers in over 60 countries. In 2018, SIG produced more than 35 billion carton packs and generated €1.7 billion in revenue. For more information, visit www.sig.biz.
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In this media release, we utilise certain non-IFRS performance measures, including core revenue, adjusted EBITDA, adjusted EBITDA margin and adjusted net income that in each case are not recognised under International Financial Reporting Standards (“IFRS”). 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 measures stated above may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS, as issued by the IASB 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, 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 non-IFRS performance measures and ratios included in this media release. Refer to the section “Financial review” in the 2018 Annual Report for SIG’s definitions of the above non-IFRS performance measures.
