Elopak ASA reports all-time high quarterly revenues in Q3-2024 with EBITDA margin at 15.5 %. The revenue growth comes from Pure-Pak® carton and closure volume growth in Europe and Americas, both through new business and increased market share, as well as strong filling machine sales. Revenue for the full year is expected to be in line with the current run rate, with an EBITDA margin above 15 %.

Q3 2024 highlights:

All-time-high quarterly revenues of EUR 292.8 million (EUR 283.5 million) with an organic revenue growth of 3.6 %

Continued strong profitability with EBITDA of EUR 45.4 million and margin of 15.5 %

“Repackaging tomorrow” strategy and new mid-term targets presented at Elopak’s first Capital Markets Day in September

Decision to invest additional USD 25 million in second production line in the new US plant

Commenting on Elopak’s performance, CEO Thomas Körmendi said: “I am pleased to see that we continue to deliver profitable growth through new business and increased market share across our core markets, as well as strong filling machine sales. Recording all-time high quarterly revenue in a quarter with challenging market conditions where consumer spending is strained in many markets and capacity constraints and supply chain challenges in the Americas, demonstrates the resilience of our revenue run rate. Also in the quarter, we have decided to double the production capacity in the US already now, prior to starting production during the first half of next year. The investment in a second line in the production plant is a direct response to the continued strong demand for our solutions”.

Elopak ASA has maintained its momentum from the first quarter of 2024 to deliver yet another strong quarter, with organic revenue growth of 3.8 % in the quarter and continued strong development in the company’s EBITDA margin. Elopak’s strong financial performance in the first half of 2024 reaffirms the company’s higher run rates.

Q2 2024 highlights:

• Quarterly revenue of EUR 288.4 million (Q2 2023: EUR 278.1 million) with an organic revenue growth of 3.8 %
• Pure-Pak^® volumes grew in both Europe and Americas
• Adjusted EBITDA of EUR 43.8 million with a margin of 15.2 % (Q2 2023: 14.9 %): Capital structure remains strong with leverage ratio of 1.9x – Record high dividend payment of EUR 34.4 million in May for FY2023 – Refinanced debt capital structure: triple-tranche inaugural green bonds successfully issued and new revolving credit facility signed

Commenting on Elopak’s performance, CEO Thomas Körmendi said: “I am happy to report yet another strong quarter with continued strong performance across all our markets. Our strong balance sheet and refinanced debt capital structure ensure that we remain in a solid position, enabling further investments in various growth initiatives going forward. We expect the strong financial performance to continue in the second half of the year in line with our reaffirmed run rates”.

Elopak reported revenue growth of 7 % in Q2 supported by price increases and successful onboarding of Naturepak. This was achieved despite the discontinued operations in Russia.

Highlights from Q2 2022:

• Revenue increased by 7 %, to EUR 259 million, driven by growth in EMEA and Americas
• New revenue from acquired businesses in MENA and India was EUR 12 million in the quarter
• Continued high raw material prices impacted the Q2 results negatively by approximately EUR 14 million
• Adjusted EBITDA was EUR 25.3 million, reflecting an adjusted EBITDA margin of 9.8 %
• The leverage ratio increased to 3.4x as of second quarter 2022, primarily driven by dividend payment in May and lower Last Twelve Months EBITDA compared to last year
• Elopak completed the acquisition of GLS Elopak to supply Roll Fed and Pure-Pak^® cartons to the Indian market

Commenting on Elopak’s performance in the quarter, CEO Thomas Körmendi said:

“I am pleased to announce strong revenue growth and profitability for Elopak in the second quarter. We are actively mitigating the unprecedented raw material prices and the challenging business environment. We expect margins to improve in the second half of 2022.

At Elopak, we are committed to delivering on our sustainability-driven growth strategy. We are very excited about entering India in a partnership with leading Indian packaging provider GLS, positioning Elopak in one of the world’s biggest and fast-growing markets. Further, the second quarter saw the post-merger integration and full first quarter of Naturepak operations as part of the Elopak Group. We continue to implement different value enhancing initiatives across all markets, aimed at improving both our top- and bottom-line.

I also want to praise our colleagues in Ukraine for their impressive resilience, managing to ramp up production despite all the challenges. Our Russian operation was sold to the local management this summer, following our earlier announcement that we were suspending our operations in the country in Q1.”

As of 30 June 2022, Year to date revenue increased by 8 %, to EUR 502.5 million. Year to date adjusted EBITDA was EUR 52.3 million, reflecting a 10.4 % margin.