SIG GROUP AG
EQS Group-News: SIG Combibloc Group AG / Key word(s): Half Year Results MEDIA RELEASE 30 July 2019 Strong performance in growth markets First half year 2019 highlights
Key performance indicators:1 H1 2019
Reported Measures:1 H1 2019
Key performance indicators1:Q2 2019
Reported measures1:Q2 2019
Rolf Stangl, CEO of SIG, said: "In the first half of 2019, we saw good top line growth driven in particular by the growth markets in Asia Pacific and the Americas, which have been the focus of our investment in recent years. Core revenue growth at constant currency of 5.1% is within our target range for the full year of 4-6%. Profitability improved in the second quarter and the H1 adjusted EBITDA margin was only slightly below the H1 2018 level, despite a reduction in the dividend from our Middle East joint venture. Growth in Asia Pacific has been driven by robust demand for liquid dairy products, augmented in many South East Asian countries by consumption of non-carbonated soft drinks. In order to meet growing demand for our packs we will construct a new plant at the Suzhou Industrial Park in China, close to our existing facilities. The investment will be partly lease-financed and does not change our guidance for net capital expenditure. Following on from the opening of our new SIG Tech Centre in Suzhou in Q4 2018, the new plant will further expand our footprint and our ability to win share in Asia Pacific, the world's largest growth region for aseptic carton packaging."
Revenue by region: H1 2019
Growth momentum was sustained in the second quarter of 2019 and for the first half core revenue increased by 5.1% at constant currency, within the target range for the full year of 4 - 6%. This progression reflects a continuing strong performance in growth markets, including both APAC and the Americas. Sales in EMEA were slightly higher at constant exchange rates. Revenue by region: Q2 2019
EBITDA and adjusted EBITDA
Adjusted EBITDA increased by 3.9% to EUR205.5 million despite the impact from the Middle East joint venture dividend, which was EUR4m lower than in H1 2018. The adjusted EBITDA margin was 25.6% (H1 2018: 25.9%), Revenue growth and currencies made a positive contribution to EBITDA, offsetting higher SG&A costs which include investments in growth markets and additional costs as a result of being a listed company. EBITDA increased by 16.5% to EUR202.0 million. The increase compared with adjusted EBITDA was largely due to an unrealised gain on derivatives, compared with a loss in H1 2018, and to lower transaction-related costs. Net income and adjusted net income Adjusted net income increased to EUR80.5 million compared with EUR48.4 million in H1 2018. The increase reflected an improvement in net income, which moved from a loss of EUR47.6 million in H1 2018 to a profit of EUR25.2 million in H1 2019. The improvement is a consequence of higher profit from operating activities and lower net finance expense following the reduction and re-financing of debt in connection with the IPO.[1] [1] The positive impact of lower net finance expense on adjusted net income has been highlighted with the publication of pro forma adjusted net income on 26 February 2019 (Annual Report p. 20 and Full Year Results Media Release) and in the Q1 2019 Trading Statement. Gross capital expenditure was EUR86.7 million in H1 2019 (H1 2018: EUR112.9 million). Net capital expenditure (net capex), after deduction of upfront cash for fillers received from customers, was EUR61.2 million compared with EUR88.1 million in H1 2018. Capacity expansion In the light of strong demand in Asia Pacific, SIG has decided to expand its production network in the region with the construction of a new plant located at the Suzhou Industrial Park in China. The plant will benefit from operational and overhead synergies with SIG's existing factory in Suzhou and is expected to achieve world class environmental and safety performance and productivity. A total investment of EUR180 million will be partly lease-financed with a Chinese partner. The project will benefit from government subsidies. Guidance for net capex of 8-10% of revenue in 2019 and over the mid-term is unchanged. The plant is expected to come onstream early in 2021. Free cash flow
Free cash flow increased from EUR2.0 million in H1 2018 to EUR36.8 million in H1 2019, reflecting higher profits from operating activities, lower financing costs and lower capital expenditure, partially offset by higher working capital. The Company generates most of its free cash flow in the second half of the year due to business seasonality. Net debt and leverage
1 Includes restricted cash Cash and cash equivalents were lower at 30 June 2019 compared with 31 December 2018 owing to the payment of the dividend in April 2019 for a total amount of EUR99 million. This has resulted in a slight increase in leverage at 30 June 2019 which is expected to reverse in the second half with the higher level of cash generation. Full year outlook Full year 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 Media contact:
Lemongrass Communications About SIG
The information contained in this media release and in any link to our website indicated herein is not for use within any country or jurisdiction or by any persons where such use would constitute a violation of law. If this applies to you, you are not authorised to access or use any such information. This media release may contain "forward-looking statements" that are based on our current expectations, assumptions, estimates and projections about us and our industry. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "may", "will", "should", "continue", "believe", "anticipate", "expect", "estimate", "intend", "project", "plan", "will likely continue", "will likely result", or words or phrases with similar meaning. Undue reliance should not be placed on such statements because, by their nature, forward-looking statements involve risks and uncertainties, including, without limitation, economic, competitive, governmental and technological factors outside of the control of SIG Combibloc Group AG ("SIG", the "Company" or the "Group"), that may cause SIG's business, strategy or actual results to differ materially from the forward-looking statements (or from past results). For any factors that could cause actual results to differ materially from the forward-looking statements contained in this media release, please see our offering memorandum for the IPO. SIG undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. It should further be noted that past performance is not a guide to future performance. Please also note that interim results are not necessarily indicative of the full-year results. Persons requiring advice should consult an independent adviser. Some financial information in this media release has been rounded and, as a result, the figures shown as totals in this presentation may vary slightly from the exact arithmetic aggregation of the figures that precede them. The attached information is not an offer to sell or a solicitation of an offer to purchase any security in the United States or elsewhere and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom such an offer, solicitation or sale would be unlawful. No securities may be offered or sold within the United States or to U.S. persons absent registration or an applicable exemption from registration requirements. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from any issuer of such securities and that will contain detailed information about us. In this media release, we utilise certain alternative performance measures, including core revenue, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA margin less net capex margin, net capex, adjusted net income, free cash flow, cash conversion and net leverage ratio that in each case are not defined in 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 alternative performance measures stated above may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS 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 alternative performance measures and ratios not defined in IFRS included in this media release. Refer to the section "Financial review" and the consolidated interim financial statements in the 2019 Interim Report for SIG's definitions of the above alternative performance measures not defined in IFRS and reconciliations to measures defined in IFRS. [1] The positive impact of lower net finance expense on adjusted net income has been highlighted with the publication of pro forma adjusted net income on 26 February 2019 (Annual Report p. 20 and Full Year Results Media Release) and in the Q1 2019 Trading Statement. Additional features: Document: http://n.eqs.com/c/fncls.ssp?u=SRDGUFEHIY Document title: SIG HYR 2019
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| Language: | English |
| Company: | SIG Combibloc Group AG |
| Laufengasse 18 | |
| 8212 Neuhausen am Rheinfall | |
| Switzerland | |
| Phone: | +41 52 674 61 11 |
| Fax: | +41 52 674 65 56 |
| E-mail: | info@sig.biz |
| Internet: | www.sig.biz |
| ISIN: | CH0435377954 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 848369 |
| End of News | EQS Group News Service |
848369 30.07.2019
