SIG well positioned to seize growth opportunities
Date 11.12.2019 | Category: News
At today's Capital Markets Day, the company will provide insights into its growing and robust end markets as well as its resilient business model and will showcase its regional go-to-market strategies. The management team will highlight how the company plans to realise the many ongoing growth opportunities thanks to its system supplier approach, leading technology, a global integrated footprint and innovative solutions. The company's medium-term financial targets remain unchanged.
SIG is a leading supplier of systems and solutions for aseptic carton packaging. SIG's customers are active in the sale of food and beverages, which are characterized by robust non-cyclical demand. At today's Capital Markets Day, the company will demonstrate how it is positioned to benefit from major trends including:
• Growing demand for processed food and beverages globally, requiring safe and affordable packaging solutions
• Demanding consumers who require differentiated premium products and convenience
• The need for a safe and efficient supply chain to meet food safety requirements
• The imperative for sustainable and recyclable packaging
SIG has a broad customer base and long-standing customer relationships with global and regional leaders in food and beverage manufacturing. With its unique sleeve-based filling technology, SIG can offer its customers unrivalled reliability and flexibility. Its aseptic carton packages compare favourably with other substrates in terms of flexibility, being 100% recyclable with a high renewable content. The company is therefore in a strong position to seize the opportunities arising from global consumer and environmental trends.
In the first nine months of 2019, SIG realised core revenue growth at constant exchange rates of 5.6% and an adjusted EBITDA margin of 26.4%. Financial targets for the current year and for the medium term remain unchanged. In the medium term the company expects to achieve core revenue growth of 4-6% at constant currency and an adjusted EBITDA margin of around 29%. It plans to distribute 50-60% of adjusted net income to shareholders and to reduce the leverage ratio of net debt to adjusted EBITDA towards 2x.
Said Rolf Stangl, CEO of SIG: "SIG is demonstrating the resilience of its business and its ability to pursue many avenues of growth. We are investing in our business while targeting an attractive return to shareholders. Our exposure to global mega-trends puts us in a great position to generate growth for many years to come. Strong customer relationships underpinned by innovation, our unique technology and our focus on sustainability will continue to be the pillars of our success in the future". For more visit sig.biz/investors/en/news-events/presentations
Source: SIGAuthor: COX