Half Year 2024 SIG Group AG Earnings Call Transcript
Key Points
- SIG Group AG (SCBGF) reported a strong performance in aseptic and chilled cartons, with constant currency growth of 6.7% for the first half of the year.
- The company successfully refinanced a significant portion of its debt, extending its maturity profile to beyond 2030 at competitive rates.
- Free cash flow improved significantly in Q2 to a positive EUR24 million compared to a negative EUR118 million in Q2 2023.
- Europe delivered strong second-quarter growth of 7% at constant currency, driven by aseptic carton volumes in the dairy sector.
- The company expects to place over 75 fillers by the end of the year, indicating strong future growth potential.
- Revenue for the first half of the year was down 12%, primarily due to underperformance in the bag-in-box and spouted pouch segments.
- Production challenges due to a plant relocation from Canada to the US led to capacity constraints and delayed shipments, impacting profitability.
- The adjusted EBITDA margin guidance was revised to the lower end of 24% to 25%, down from the previous range of 25% to 26%.
- The Americas region saw a revenue decline of 4.1% on a constant currency basis for the first half of the year.
- Foreign currency headwinds and under-absorption of production costs negatively impacted adjusted EBITDA.
Good morning, ladies and gentlemen, and thank you for joining us. I am Ingrid McMillan of Investor Relations. And with me today hosting the call are Samuel Sigrist, CEO; and Anne Atkins, CFO.
The slides for the call are available for download on our Investor website. This presentation may contain forward-looking statements involving risks and uncertainties that may cause results to differ materially from those statements. All cautionary statements and disclaimer can be found on slide 2 of the presentation, which participants are encouraged to read carefully.
And with that, let me hand you over to Samuel.
Thank you, Ingrid, and welcome, everybody. Starting with the business summary of the half year, the performance of cartons, both aseptic and chilled has been above our expectations. Growth accelerated strongly in the quarter, resulting in constant currency growth of 6.7% for the first half. Bag-in-box and starter pouch
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