Packaging SIG makes less profit and lowers forecast
Packaging manufacturer SIG grew in the first half of 2024. However, currency effects and increased costs weighed on profitability. The company is now lowering its forecast for the year as a whole.
30.07.2024, 07:39
SDA
Currency-adjusted sales grew by 3.0 percent to 1.57 billion euros, as the company announced on Tuesday. The carton packaging business was particularly successful, while demand for bag-in-boxes was below expectations, it said.
Adjusted operating profit EBITDA fell by 3.7 percent to 369.5 million euros. According to the press release, this was due to negative currency effects, which reduced the margin by 60 basis points, as well as higher production costs. Adjusted net profit fell by 16.8 percent to 120.2 million euros.
SIG's sales and EBITDA figures are slightly above analysts' expectations. In terms of profit, however, expectations were slightly missed.
The packaging manufacturer is now adjusting its guidance. For the full year 2024, the company now expects currency-adjusted growth of around 4 percent, +/- 50 basis points (previously: at the lower end of 4 and 6 percent). The EBITDA margin is now expected to be in the "lower half" of the range of 24 to 25 percent (previously: in the "lower half" of the range of 25 to 26 percent).
