First half year 2020 highlights
- Core revenue up 8.6% at constant currency; up 7.0% as reported
- Adjusted EBITDA margin 25.1% (H1 2019: 25.6%): underlying increase more than offset by negative currency impact (H1 2020 margin at constant currency: 26.9%)
- Adjusted net income stable at €79.6 million
- Second quarter revenue growth reflects supply chain stock-building which is likely to dampen growth in second half year
- Full year core revenue growth expected to be 4-6% at constant currency (previously 6-8%)
- Full year adjusted EBITDA margin guidance unchanged at 27-28%
Said Rolf Stangl, CEO of SIG Combibloc: “I am proud of SIG’s performance during a period of unprecedented challenge for many companies worldwide. The precautions we took at the onset of the COVID-19 crisis have ensured the safety of our employees and have enabled our factories to keep running. The exceptional efforts and dedication of our teams across the organisation have enabled us to continue supporting our customers in delivering essential food and beverages to consumers.
“The results for the second quarter are stronger than expected, contributing to a first half performance which clearly demonstrates the benefits of our broad geographic presence. Strong growth in Europe more than compensated for a relatively weak performance in Asia Pacific, where on-the-go consumption has been hit by lockdowns in various countries. While we continue to reap the benefit of new customer wins and filler placements globally, our first half performance also reflects stock-building by customers, retailers and consumers. This is likely to reverse to some extent in the second half and we also expect a reduced year-end rally as customers opt to conserve cash. We are therefore lowering our constant currency core revenue growth forecast for the full year to 4-6%. This is still substantial growth given that APAC, usually our fastest growing region, is geared to on-the-go consumption. Overall, our business continues to perform well and to demonstrate resilience in difficult circumstances. We are maintaining our target for the adjusted EBITDA margin and expect to generate significant free cash flow for the full year.”
Interim financial statements for the first half of 2020 are available for download at sig.biz/investors/en/performance/historical-financial-statements
