SIG Combibloc Group AG
- WKN: A2N5NU
- ISIN: CH0435377954
- Land: Switzerland
Nachricht vom 05.05.2020 | 07:00
SIG Combibloc Group AG: Strong revenue growth and cash generation
SIG Combibloc Group AG / Key word(s): Quarter Results
5 May 2020
Strong revenue growth and cash generation
First quarter 2020 highlights
Key performance indicators:1 First quarter 2020
Reported measures: First quarter 2020
Rolf Stangl, CEO of SIG Combibloc, said: "Like all companies, we have faced unprecedented challenges due to the Covid-19 crisis. The health and safety of all employees has been - as ever - our priority throughout this period. We implemented a pandemic preparedness plan early on to protect our employees and prevent infections, with a coordinated network of global and regional task forces. Rigorous precautionary measures included enhanced hygiene standards, social distancing, strict travel restrictions and a ban on visitors at our sites. To ensure supply continuity, we built up safety inventories at all levels, from raw materials through to finished goods. As a result of the measures taken, all our factories continued production in the quarter without interruption. This enabled us to continue supporting our customers in delivering essential food and beverages to consumers. I should like to express my gratitude to all our employees - and particularly those working in our production plants - who have made this possible. "
All regions contributed to growth in the first quarter. In EMEA, core revenue growth at constant currency of 3.1% reflected the ongoing benefit of new customer wins and filler placements in Europe. March saw an increase in orders as our customers responded to hoarding by consumers. In addition, Covid-19 lockdowns in European countries have resulted in higher at-home consumption.
In APAC, sales in China were stable compared with a very strong Q1 2019. The prohibition on movement during the Chinese New Year resulted in a significant loss of the traditional gifting business. However, many customers stocked up during the quarter in view of uncertainties around future measures against the spread of Covid-19. In South East Asia sales were affected by reduced economic activity in markets where lockdowns occurred. In addition, some customers entered the year with relatively high stocks. Growth in the APAC region was augmented by the consolidation of Visy Cartons, acquired in November 2019.
The Americas registered a strong performance with a continuation of the positive trends from last year, including buoyant sales to dairy customers in Mexico and the deployment and ramping up of new fillers in Brazil.
EBITDA and adjusted EBITDA
Adjusted EBITDA was slightly lower at €83.7 million reflecting the impact of the depreciation of key currencies, notably the Brazilian Real and the Thai Baht, against the Euro. The adjusted EBITDA margin was 21.3% (Q1 2019: 23.6%). Excluding the impact of currency, the adjusted EBITDA margin was 26.2%, reflecting a strong top line contribution and lower raw material costs. The first quarter has historically been the smallest quarter in terms of adjusted EBITDA and margin.
EBITDA was €67.2 million compared with €88.3 million in the first quarter of 2019. The decrease includes an unrealised loss on commodity derivatives which is not included in adjusted EBITDA.
Net income and adjusted net income
Adjusted net income was €12.9 million compared with €29.1 million in the first quarter of 2019. The decline reflects the impact of currencies on EBITDA and on intra-group financing costs.
Net income moved from a profit of €4.7 million in the first quarter of 2019 to a loss of €25.5 million in the first quarter of 2020.
A dividend of CHF 0.38 per share was paid out of capital contribution reserves on 16 April 2020, equating to a total distribution of €115 million.
Free cash flow
Free cash flow has historically been negative in the first quarter due to the seasonality of the business which is weighted towards the second half of the year. In the first quarter of 2020, free cash flow was positive at €16.2 million due to a significant improvement in net working capital, which more than offset an increase in net capex due to the construction of a new plant in China to serve the Asia Pacific region.
Net debt and leverage
Full year outlook
At present it is not possible to reliably predict the effects of the Covid 19 crisis or currency movements for the remainder of the year. However, the Company remains confident in its ability to grow and to generate substantial free cash flow. Following a very strong first quarter, the second quarter is likely to be weak. This is primarily due to the consumption of stocks in Asia and to continuing lockdowns in many countries affecting on the go consumption. However, on the assumption that consumption will revert to more normal levels in the second half of the year, the Company regards its full year guidance of constant currency growth at the lower end of a 6 to 8% range as achievable. Assuming more normal consumption in the second half and subject to currency movements, guidance of an adjusted EBITDA margin at the lower end of the 27-28% range is also maintained.
Jennifer Gough +41 52 674 6508
Disclaimer & cautionary statement
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 contains "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 quarterly 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 media release may vary slightly from the exact arithmetic aggregation of the figures that precede them.
n this media release, we utilise certain alternative performance measures, including but not limited to core revenue, EBITDA, adjusted EBITDA, adjusted EBITDA margin, net capex, adjusted net income, free cash flow 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. For definitions of alternative performance measures and their related reconciliations that are not included in this media release, please refer to the following link www.sig.biz/investors/en/performance/key-figures
The following table reconciles profit or loss to EBITDA and adjusted EBITDA.
The table below is a summary of the reconciliation of profit or loss for the period to adjusted net income.
Document title: SIG Q1 2020 English
End of ad hoc announcement
|Company:||SIG Combibloc Group AG|
|8212 Neuhausen am Rheinfall|
|Phone:||+41 52 674 61 11|
|Fax:||+41 52 674 65 56|
|Listed:||SIX Swiss Exchange|
|EQS News ID:||1035523|
|End of Announcement||EQS Group News Service|
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