Full year 2023 financial results highlight strong business profile
- 2023 Group revenue growth at constant currency of 18.5%
- 2023 organic aseptic carton revenue growth1 at constant currency of 7.4%
- 2023 proforma bag-in-box and spouted pouch constant currency revenue growth, excluding resin escalator, of 5.6%2
- 2023 adjusted EBITDA margin of 24.9% (2022: 23.5%)
- Reduction in net leverage to 2.7x (31 December 2022: 3.1x)
- 2024 outlook: 4-6% constant currency revenue growth (low end of range) and adjusted EBITDA margin of 25-26% (lower half of range)
- Mid-term guidance confirmed
- Proposed dividend of CHF 0.48 per share (2022: CHF 0.47), paid from the foreign capital contribution reserves
1 Organic growth represents aseptic carton and excludes the acquisitions of the bag-in-box, spouted pouch and chilled carton businesses.
2 Proforma bag-in-box & spouted pouch constant currency growth excluding resin escalator impact, unaudited. Proforma constant currency revenue growth for bag-in-box and spouted pouch was 2.9%, unaudited.
Samuel Sigrist, CEO of SIG, said: “We are pleased with SIG’s strong revenue performance amid some softness in our end markets due to food price inflation impacting demand.
Total revenue growth at constant currency was up 18.5% driven by the contribution from the prior year acquisitions. Organic revenue growth for our aseptic carton business was 7.4%, which is testimony to our strong business model and our ability to secure price increases to offset higher input costs. On a proforma basis, bag-in-box and spouted pouch revenue increased by 5.6%3 for the year.
We continue to identify and to realize cross-selling wins between our different substrates underpinning our strategy to offer a broader product portfolio to our food and beverage customers.
The Group’s adjusted EBITDA margin increased to 24.9% compared with 23.5% in 2022. The 140-basis point increase was at the top end of our guidance range for an increase of 50 to 150 basis points.
We are pleased to have placed another 91 aseptic carton filling lines in 2023, the same level as 2022. This performance for two successive years is a new record for the Group and demonstrates that our distinctive systems-based offering remains highly attractive to our customers when making long term investment decisions.
We believe the strong cash generative nature of our business model combined with our excellent ESG credentials of our packaging substrates will ensure our success for many years to come.”
3 Proforma bag-in-box & spouted pouch constant currency growth excluding resin escalator impact, unaudited. Proforma constant currency revenue growth for bag-in-box and spouted pouch was 2.9%, unaudited.
Disclaimer
This communication expressly or implicitly contains certain forward-looking statements, such as "believe", "assume", "expect", "forecast", "project", "may", "could", "might", "will" or similar expressions concerning SIG Group AG and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of SIG Group AG to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. SIG Group AG is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.