In This Article:
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Revenue Growth: 3.5% increase, reaching almost EUR 300 million for the quarter.
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EBITDA: EUR 45 million, with a 15.5% margin.
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Return on Capital Employed (ROCE): 16.8% for the last 12 months.
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Investment in Americas: Approved EUR 25 million for additional capacity in Arkansas plant.
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Cash Flow from Operations: EUR 94 million.
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Net Interest-Bearing Debt: Increased due to investment program in America.
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Dividends Paid: EUR 34 million.
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Leverage Ratio: Achieved midterm target.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Elopak ASA (FRA:9J7) reported an all-time high quarterly revenue with a growth rate of 3.5%, driven by organic growth rather than pricing.
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The company achieved a strong EBITDA of 45 million EUR, maintaining a 15.5% margin level.
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Elopak ASA is expanding its capacity in the Americas with a 25 million EUR investment in a second line at the Arkansas plant, which will more than double its capacity.
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The company is seeing solid growth in its core Pure-Pak business, particularly in Northern and Central Europe and the Americas.
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Elopak ASA's strategic initiatives, including the Repackaging Tomorrow strategy, aim to enhance its leadership in sustainable carton packaging and target a 15-17% margin level.
Negative Points
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The company faced challenges in the supply chain, particularly in the Americas, due to a supplier's maintenance issues, impacting production capacity.
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There is a softer demand in Southern Europe and MENA regions, driven by strained consumer spending, affecting volume growth.
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Elopak ASA experienced a decrease in EBITDA compared to Q3 of the previous year, partly due to a one-off effect in the prior year.
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The role-fed business is facing more competition, particularly in Europe, which has impacted growth in that segment.
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The company is operating at full capacity in some areas, limiting its ability to grow carton sales without additional investments.
Q & A Highlights
Q: You're mentioning that you are gaining market share in core Europe. Can you tell us in terms of growth, how much is price and how much is volume, and also compare it to the market growth? A: All the growth we are seeing in the quarter is volume growth. We have not increased prices in 2024. The growth is driven by technology offerings, which are preferred over competitors, rather than price adjustments. The market for chilled milk is not growing, and juice consumption has declined due to high concentrate costs.