SIG GROUP AG
EQS Group-Ad-hoc: SIG Combibloc Group AG / Key word(s): Half Year Results
SIG Combibloc Group AG: Sustained revenue growth and increased profitability
27-Jul-2021 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
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MEDIA RELEASE
27 July 2021
SIG Combibloc Group AG ("SIG")
Sustained revenue growth and increased profitability
First half year 2021 highlights
- Core revenue at constant currency up 15.3%; up 8.8% on a like-for-like basis
- Middle East and Africa (MEA) business fully consolidated from end of February 2021
- Robust second quarter performance following exceptional first quarter growth
- Adjusted EBITDA margin 27.3% (H1 2020: 25.1%)
- Adjusted net income up 38% to EUR109.6 million
Revenue performance: H1 2021
Six months Six months Like-for-like
ended ended Change change^(1)
30 June 30 June Reported Constant Constant
(In EUR million or %) 2021 2020 currency currency currency
Core revenue 950.9 849.7 11.9% 15.3% 8.8%
Total revenue 965.8 860.0 12.3% 15.7% 9.2%
^(1) Including MEA. Key performance indicators: H1 2021
Six months Six months
ended ended
30 June 30 June
(In EUR million or %) 2021 2020
Adjusted EBITDA 264.1 215.7
Adjusted EBITDA margin 27.3% 25.1%
EBITDA 283.5 213.9
Adjusted net income 109.6 79.6
Net income 92.0 10.0
Free cash flow 25.0 28.1 Revenue performance: Q2 2021
Three months Three months Like-for-like
ended ended Change change^(1)
30 June 30 June Reported Constant Constant
(In EUR million or %) 2021 2020 currency currency currency
Core revenue 508.9 460.1 10.6% 13.2% 5.0%
Total revenue 514.5 467.1 10.2% 12.7% 4.7%
^(1) Including MEA Key performance indicators: Q2 2021
Three months Three months
ended ended
30 June 30 June
(In EUR million or %) 2021 2020
Adjusted EBITDA 146.2 132.0
Adjusted EBITDA margin 28.4% 28.3%
EBITDA 190.4 146.7
Adjusted net income 57.6 66.7
Net income 89.1 35.5 Samuel Sigrist, CEO of SIG Combibloc, said: "In the first half of 2021, we sustained strong revenue growth against a tough base of comparison and in a context of ongoing uncertainty around COVID-19. Profitability increased and the business is proving resilient in an inflationary environment.
2021 has brought a number of milestones in the expansion of our global presence. We acquired full control of our Middle East and Africa business at the end of February and the integration has proceeded very smoothly. Our new plant in Asia Pacific has been up and running since the beginning of the year and in April we announced the construction of a new plant in Mexico to serve North America.
Sustainability continues to be top of mind for us and for our customers. It is at the heart of our carton packs, which are made largely of renewable materials and are fully recyclable. We continue to see customer launches involving a switch to carton from PET and the adoption of our formats with enhanced sustainability. Our focus on innovation goes hand-in-hand with our vision of a net positive food packaging system. It means that we will continue to enhance the value of our offering to customers while striving to deliver positive outcomes for both people and the planet."
Consolidation of Middle East and Africa business
With effect from the end of February, revenues of the former Middle East and Africa joint ventures are fully consolidated and presented in a new segment, Middle East and Africa (MEA). The segment Europe, Middle East and Africa (EMEA) relates to the Group's reporting structure which was in place for the first two months of the year, prior to acquisition of the MEA business.
The acquisition of the former joint ventures in the Middle East generated incremental revenue of EUR68 million in the first half of 2021. This takes account of sales to external customers in the Middle East and Africa less the elimination of inter-company sales to the Middle East, which prior to the acquisition were treated as external sales. The acquisition contributed EUR14 million incremental adjusted EBITDA in the first half of 2021, representing adjusted EBITDA from the MEA region over four months less dividends received in the first half of 2020.
Sale of Whakatane paper mill in New Zealand
Following the announcement in March 2021 of the closure of its paper mill in New Zealand (Whakatane), SIG was able to identify potential buyers. This resulted in the sale of the paper mill on 3 June 2021 for NZD 1 to a consortium of investors who will enable the paper mill to continue to operate.
Revenue by region: H1 2021
Six months Six months Change
ended ended
30 June 30 June Reported Constant
(In EUR million or %) 2021 2020 currency currency
EMEA^(1) 119.3 386.6 na na
Europe^(1) 237.7 na
MEA^(1) 100.6 na
APAC 315.8 305.4 3.4% 6.5%
Americas 174.2 151.3 15.1% 28.4%
Group Functions 3.3 6.4
Core revenue from transactions
with external customers 950.9 849.7 11.9% 15.3%
Revenue from sale of folding box board 14.9 10.3
Total revenue 965.8 860.0 12.3% 15.7%
^(1) Two months' revenue for EMEA in 2021; four months' revenue for Europe and MEA in 2021 Revenue by region: Q2 2021
Three months Three months Change
ended ended Reported Constant
30 June 30 June currency currency
(In EUR million or %) 2021 2020
EMEA^(1) na 205.7
Europe^(1) 177.3 na
MEA^(1) 71.3 na
APAC 168.1 168.6 (0.3%) 2.5%
Americas 92.1 83.2 10.6% 18.5%
Group Functions 0.1 2.6
Core revenue from transactions
with external customers 508.9 460.1 10.6% 13.2%
Revenue from sale of folding box board 5.6 7.0
Total revenue 514.5 467.1 10.2% 12.7%
^(1) Three months' revenue for EMEA in 2020, three months' revenue for Europe and MEA in 2021. In Europe, revenue in the first half of 2021 was 1% higher at constant exchange rates on a like-for-like basis. Starting in March, performance was measured against the period in 2020 marked by the onset of the COVID-19 pandemic, when consumer stock-piling was followed by customer and retailer re-stocking. These effects did not recur in 2021. However, the liquid dairy business continued to benefit from high at-home consumption due to ongoing restrictions on office working.
In the Middle East and Africa, like-for-like constant currency growth for the four months to June 2021 was 2.1%. Exceptionally high sales in March were followed by a more muted second quarter, also measured against a very strong Q2 2020. The non-carbonated soft drinks market has been negatively affected by COVID-19, with lower out-of-home consumption. At the same time, drought in South Africa temporarily affected the liquid dairy business. Asia Pacific saw a significant boost to sales from re-stocking in the first quarter, which was followed by slower growth in the second quarter. Market conditions in China have returned to more normal levels although some COVID-19 effects remain. Demand for white milk in China is robust due to its acknowledged health benefits. The situation in South-East Asia continues to be affected by COVID-19 and on-the-go consumption, which plays a key role in these countries, remains constrained.
The Americas saw exceptional growth reflecting the contribution of fillers deployed in Brazil in the course of 2020. At-home consumption continued to drive demand in both Brazil and Mexico. Revenue in the USA benefited from the re-opening of restaurants and a re-stocking of foodservice products packed in SIG cartons.
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