Elopak Board of Directors announces that CEO, Thomas Körmendi has decided to step down from his position due to personal reasons driven by his planned relocation to Denmark.
The Board has initiated the process of finding a new CEO. Körmendi will continue in his role until a successor is in place, to ensure a smooth transition and continuity in the implementation of the strategy “Repackaging tomorrow”. The strategic direction and priorities remain unchanged.
Chair of the Board, Dag Mejdell, comments: “Under Thomas Körmendi’s leadership, Elopak has positioned itself as the sustainability leader in the industry and materially strengthened its market positions. After the IPO in 2021, Elopak has grown to be an end-to-end solution provider in fresh, aseptic and non-food segments. The company has increased its global market presence through successful acquisitions – expanding the company into MENA and Asia. More recently, the establishment of the state-of-the-art production plant in the United States showcases substantial progress in the company’s growth journey. This is evident in the financials with top line growth and profitability having improved significantly.
The Board wants to thank Körmendi for his significant contribution to the success of the company during his tenure.”
CEO Thomas Körmendi comments: “It has been a privilege and a pleasure to lead Elopak over this exciting and eventful period. This is a personal decision driven by a new job opportunity and a desire to relocate home to Denmark. Elopak is a fantastic company with highly competent people on a mission to offer more sustainable packaging alternatives to plastics. I have great confidence in the continued success of the company thanks to the strong leadership team in place. I am fully committed to ensuring a smooth transition.”
Global packaging company Elopak presented its revised corporate strategy, entitled ‘Repackaging tomorrow’, during the company’s capital markets day in Oslo on September 4. The strategy sets out plans for Elopak to approximately double its revenue to EUR 2 billion by 2030.
“Elopak will deliver above-market growth by realizing global growth opportunities, strengthening leadership in our core markets, and leveraging the plastic replacement shift, towards becoming a 2 EURbn company by 2030”, says Thomas Körmendi, CEO of Elopak.
Since the company’s IPO in June 2021, Elopak has delivered on its financial targets and strategic priorities ahead of schedule. During the same period, the company has developed from being the world’s largest fresh liquid carton packaging company to a leader in fiber-based packaging. Now, it is time to refocus priorities and set new targets.
For the coming 3-5-year period, Elopak aims to deliver:
- 4–6 per cent annual organic revenue growth
- 15–17 per cent adjusted EBITDA margin
- Dividend distributions of 50–60 per cent of normalized net profit
- Leverage ratio of ~2.0x net debt/adjusted EBITDA
The company has defined three strategic priorities to accelerate sustainability-driven growth and strengthen its profitability.
1. Realize global growth:
In the US, Elopak has a new state-of-the-art production plant currently under construction. This plant in Little Rock, Arkansas has the potential to double revenues in the margin accretive North American market. In the Middle East and North Africa (MENA), Elopak aims to leverage its #1 position in the region’s fresh market to become the leading system supplier across multiple segments. In India, the world’s largest dairy market, Elopak aims to broaden its offering by expanding local production to include Pure-Pak® cartons, as well as the Roll Fed cartons currently available.
2. Strengthen leadership in core
Elopak will continue to strengthen its leading position in European markets as businesses and consumers accelerate their shift towards more sustainable packaging solutions. By leveraging its strong track record in sustainability and innovation, the company seeks net advantages from upcoming regulations and to take a sustainability frontrunner position.
3. Leverage plastic replacement shift
Elopak will develop the current and next generations of its D-PAK™ carton to strengthen its position in the home and personal care segment. In addition, the company will explore opportunities for partnerships and acquisitions to further accelerate profitable growth in adjacent categories.
Introducing new people and planet targets
Elopak has defined new people and planet targets, which reaffirm the company’s strong safety and sustainability commitments. By 2030, 100 per cent of Elopak’s cartons will be designed for recycling. In parallel, Elopak will work to reduce its Scope 3 emissions by 25 per cent while doubling revenues, on its way to become a net zero company by 2050.
“As a market leader in fiber-based packaging, Elopak is well-positioned to benefit from increased regulations and growing sustainability awareness among customers and consumers. With our strong track record and innovation pipeline, our total product portfolio will be designed for recycling by 2030”, says Körmendi.
The full presentation was broadcast live at the following web address and a recording is also available: https://channel.royalcast.com
Elopak announces Thomas Körmendi as new Chief Executive Officer (CEO) and President of the Elopak Group, to join on 01 April 2018.
Thomas Körmendi is currently CEO at Kezzler AS, a Norwegian company working with the digitalization of packaging. Earlier in his career Thomas worked about twenty years at Tetra Pak in various international positions. His latest position in Tetra Pak was as Vice President and head of North Europe with 1200 employees and four multi country production plants.
“With the recruitment of Thomas Körmendi we have secured an international profile with solid knowledge of the industry to realize the strategic ambitions of the Elopak Group”, says John Giverholt, Chairman of the Elopak Board of Directors. “I look forward to the cooperation with Thomas to further develop and strengthen Elopak.”
Thomas Körmendi will be based at Elopak’s Group Headquarters in Skøyen, Oslo, Norway.
