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”.
Global packaging company Elopak has reduced its direct emissions by a third from 2020 as part of its ongoing efforts to reach net zero emissions by 2050.
Elopak’s direct Scope 1 and Scope 2 emissions are down 33 % compared to a 2020 baseline, according to the company’s combined annual and sustainability report. This includes major sources of greenhouse gas emissions such as electricity usage, natural gas, and waste incineration. The decrease puts Elopak well on the way to achieving a 42 % reduction in direct emissions by 2030 and reaching net zero emissions by 2050, under goals approved by the Science Based Targets initiative (SBTi).
People, Planet, Profit
The environmental milestone was publicised in Elopak’s first ever combined annual and sustainability report. This document details progress towards the company’s sustainability commitments across the key areas of people, planet, and profit.
This year the report also highlighted that emissions from Elopak’s filling machines were reduced by 29 % in 2023 and that the average carbon footprint for an Elopak carton has fallen to 23.3gCO2e – down from 23.9gCO2e in 2022.
Thomas Körmendi (Photo: Elopak)
“These developments reflect our continued commitment to environmental, social, and ethical excellence in our journey towards becoming a net zero company by 2050,” said Elopak CEO Thomas Körmendi.
2023 marked 15 years of structured sustainability reporting at Elopak. In the same year the company was awarded an A+ score for ESG reporting by sustainability consultancy Position Green, placing it in the top 5 % of companies best prepared for the introduction of European Sustainability Reporting Standards (ESRS).
The combined report also recounted strong financial results for Elopak during the year, despite significant economic and geopolitical headwinds. Organic revenues for the company increased by 9.4 % to EUR 1.13 billion and the adjusted EBITDA margin was 15.1 %.
Additionally, in 2023, Elopak welcomed 166 new employees – the most for the company ever in a single year – and is set to bring on even more staff when production begins at its plant in Little Rock, Arkansas, which is slated for the first half of 2025.
“2023 was all about advancing our sustainable growth. I am thankful to all our colleagues, customers, suppliers and partners for their fantastic collaboration and the results achieved throughout the year,” said Körmendi.
The Coca-Cola Company reported continued momentum in its business for 2018, with strong financial results for the third quarter. While reported net revenues for the quarter declined due to refranchising, the company delivered broad-based organic revenue (non-GAAP) and volume growth across all operating groups, while gaining value share globally.
Strong organic revenue (non-GAAP) growth in the quarter was driven by continued innovation and revenue growth management initiatives within sparkling soft drinks, as evidenced by double-digit volume growth of Coca-Cola Zero Sugar across all groups. In addition to sparkling soft drinks, the company saw strong performance for brands like Fuze Tea and smartwater. Coca-Cola also announced several strategic actions, including a number of acquisitions and investments, and continued to lift, shift and scale brands around the world. The company’s disciplined growth strategies and an ongoing focus on productivity led to double-digit profit growth for the quarter.
“We continue to be encouraged by our performance year-to-date as we accelerate our evolution as an even more consumer-centric, total beverage company,” said James Quincey, President and CEO of The Coca-Cola Company. “The recent leadership appointments are intended to help accelerate the transformation of our company.”
Highlights
Quarterly Performance
Revenues: Net revenues declined 9 % to $8.2 billion, impacted by a 13-point headwind from the refranchising of company-owned bottling operations. Organic revenues (non-GAAP) grew 6 %, driven by concentrate sales growth of 4 %, which benefited from the timing of shipments, and price/mix growth of 2 %.
Volume: Unit case volume grew 2 %, led by Trademark Coca-Cola.
Margin: Operating margin, which included items impacting comparability, expanded approximately 600 basis points. Comparable operating margin (non-GAAP) improved 575 basis points, driven by divestitures of lower-margin bottling operations and the company’s ongoing productivity efforts. These drivers were partially offset by an approximate 130 basis point headwind from the adoption of the new revenue recognition accounting standard and the impact of currency.
Market share: The company continued to gain value share in total nonalcoholic ready-to-drink (NARTD) beverages.
Cash flow: Year-to-date cash from operations was $5.5 billion, down 7 %. The decline was largely due to the impact of refranchising North American bottling territories and increased tax payments, partially offset by solid cash generation in the underlying business. Year-to-date free cash flow (non-GAAP) was $4.6 billion, down 2 %.
Share repurchases: Year-to-date purchases of stock for treasury were $1.6 billion. Year-to-date net share repurchases (non-GAAP) totaled $707 million.
