SIG Combibloc Group AG
- WKN: A2N5NU
- ISIN: CH0435377954
- Land: Switzerland
Nachricht vom 26.02.2019 | 07:00
SIG Combibloc Group AG: SIG reports strong growth and cash generation in 2018
EQS Group-News: SIG Combibloc Group AG / Key word(s): Annual Results
Full year 2018 highlights
Full year performance
Fourth quarter performance
1 At constant currencies
"Our broad international presence continues to provide us with promising growth opportunities. These opportunities come with exposure to currency fluctuations, which in 2018 dampened growth in adjusted EBITDA. At constant currencies, adjusted EBITDA increased by 8%. The adjusted EBITDA margin increased to 27.5%, reflecting a positive business mix and ongoing cost efficiency measures. We achieved a significant increase in adjusted free cash flow, while continuing to expand our filler base in growth markets. The cash generative nature of our business underpins our intended mid-term dividend payout ratio of 50-60% of adjusted net income. For 2018, we are proposing a Swiss franc dividend payout in 2019 equivalent to around EUR100m."
Core revenue rose by 6.4% at constant currencies (+3.4% at reported rates), which was ahead of the target range of 4 - 6%. Growth was driven in particular by the Asia Pacific region which, after an exceptional first half, continued to show good momentum throughout the second half. Sales in EMEA were lower owing to instability in some Middle Eastern markets, which affected sales to the joint venture there, more than offsetting underlying growth in the European business. The Americas achieved growth at constant exchange rates despite political and economic uncertainty in Brazil in the second half.
Total revenue increased by 0.7% at reported rates. Total revenue includes sales of laminated board to the Middle East joint venture, which ceased in the second quarter of the year as part of our internal supply chain strategy, and sales of folding box board to third parties, which will be phased out.
At constant currencies, adjusted EBITDA increased by 8%. At reported rates, adjusted EBITDA was 1% higher. The adjusted EBITDA margin increased to 27.5% despite the negative impact from currencies, notably the Brazilian Real, as well as higher raw material costs. The improvement reflects strong top line growth, production efficiencies and lower SG&A costs following the launch of combismile in 2017. In addition, the opening of a new regional Tech Center in China is allowing the company to conduct R&D closer to the market at a lower cost. Significant savings have also been achieved by locating a Business Service Center in Romania, amongst other re-organization measures.
Adjusted net income and earnings per share
Adjusted net income increased from EUR106 million in 2017 to EUR149 million in 2018. Adjusted earnings per share were EUR0.62 compared with EUR0.49 in 2017.
On a pro forma basis, adjusting for the reduction in interest expense post IPO and related tax effects, net income increased from EUR198 million to EUR213 million in 2018. Pro forma adjusted earnings per share were EUR0.66 compared with EUR0.62 in 2017.
Gross capital expenditure was EUR214 million in 2018. Net capital expenditure (net capex), after deduction of upfront cash for fillers received from customers, was EUR143 million compared with EUR164 million in 2017, which was a year of high filler investments.
The ratio of net capex to revenue was reduced from 9.9% in 2017 to 8.5% in 2018. The adjusted EBITDA less net capex margin increased from 17.5% in 2017 to 19.0% in 2018.
Adjusted free cash flow
Adjusted free cash flow increased from EUR202 million in 2017 to EUR257 million in 2018, reflecting an increase in net cash from operating activities, including a positive contribution from net working capital. Cash conversion increased from 64% in 2017 to 69% in 2018.
Adjusted free cash flow per share was EUR0.80 per share compared with EUR0.63 in 2017.
Net debt and balance sheet
The use of the primary proceeds from the IPO in September 2018 to pay down debt has resulted in a significant reduction in the net leverage ratio. Concurrently with the IPO, the company repaid its senior unsecured notes and re-financed its senior secured loans on attractive terms.
Dividend distribution payable out of capital contribution reserves
Rolf Stangl, CEO of SIG, said: "For 2019, we are targeting core revenue growth of 4 - 6% at constant currencies. We also target an adjusted EBITDA margin of 27 - 28%, taking account of a lower dividend payment by our Middle East joint venture in view of the challenging conditions in some of its markets. Net capital expenditure is forecast to be in the range of 8 -10% of revenue and we expect to generate substantial free cash flow.
"In the mid-term we expect our business to continue to demonstrate its resilience. This is underpinned by our exposure to non-discretionary consumption of food and beverages, our ongoing expansion in growth markets and the excellent environmental profile of our products. We maintain our medium-term targets of core revenue growth of 4 - 6% at constant currencies and an adjusted EBITDA margin of around 29 percent. Net capital expenditure is expected to remain within the 8 -10% of revenue range. We plan a dividend payout ratio of 50 - 60% of adjusted net income for years after 2018, while reducing net leverage towards 2x."
2018 Annual Report
The Board of Directors of SIG proposes that the agenda for the Annual General Meeting shall include, among other items:
The full invitation for the Annual General Meeting, including all agenda items, is expected to be published on 19 March in the SHAB (Schweizerisches Handelsamtsblatt) and on the website of SIG at: https://investor.sig.biz/en-gb/home/
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 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). Factors that could cause actual results to differ materially from the forward-looking statements are included without limitations into 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 non-IFRS financial measures, including core revenue, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, pro forma earnings per share, net capital expenditures, adjusted free cash flow, adjusted free cash flow per share and cash conversion 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 measures and ratios included in this media release. Refer to the attached "Financial review" for SIG's definitions of the above non-IFRS measures.
Summary consolidated statement of financial position
Document title: SIG FYR 2018
|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|
|End of News||EQS Group News Service|
ESG-Whitepaper im Fokus
The Corporate ESG Guide: A 360 view on the current landscape and trends
Die ESG-Kriterien (Environmental, Social and Governance) werden auch für Emittenten immer wichtiger, wenn sie für Investoren attraktiv bleiben wollen. In dem Whitepaper “The Corporate ESG Guide: A 360 view on the current landscape and trends” beantworten die Experten von Investor Update grundlegende Fragen von Emittenten. Außerdem kommen Vermögensverwalter, Unternehmensberater Manager und ESG-Ratingagenturen zu wichtigen ESG-Themen zu Wort.
"GBC Best of m:access 2020": Neue vielversprechende Auswahl
Unsere letztjährige „GBC Best of m:access“-Auswahl hat sich mit einer Performance von über 50 % überdurchschnittlich stark entwickelt und alle relevanten Indizes hinter sich gelassen. Im Rahmen der vorliegenden aktualisierten Studie präsentieren wir Ihnen eine in Teilen neu zusammengesetzte Selektion, die weiterhin 15 Unternehmen umfasst. Die aktuellen Einschätzungen zu den Einzeltiteln und auch weitere Informationen zur Entwicklung des m:access sind in der vollständigen Studie „GBC Best of m:access 2020“ enthalten.
Der AKTIONÄR News
02. Dezember 06:39 DAX nach neuen US-Rekordständen in Lauerstellung – das ist heute ...
02. Dezember 06:17 Sixt-Aktie vor wichtiger Entscheidung: Kaufsignal oder Rücksetzer?
01. Dezember 21:37 Schlussglocke: Dow Jones kann weiter zulegen, Nasdaq und S&P 500 mit ...
01. Dezember 21:20 Tesla: Elon Musk warnt vor dem Crash der Aktie
01. Dezember 20:45 Microsoft: Gleich 35 Mal "Kaufen"
News im Fokus
Munich Re verkündet Gewinnziel von 2,8 Mrd. € für 2021; Gewinnprognose 2020: 1,2 Mrd. €
01. Dezember 2020, 10:54
30. November 2020
Original-Research: CEWE Stiftung & Co. KGaA (von GSC Research GmbH): Halten
01. Dezember 2020