In This Article:
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Revenue Growth: Core business of cartons and closures grew by more than 6% in Q4.
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EBITDA Margin: Consistently maintained at 15%, slightly increasing from the previous year.
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Leverage Ratio: Ended at 2.1, close to the midterm target of 2.
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Dividend Yield: Proposed at 4%, with a payout of EUR 0.13 per share.
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EMEA Revenue Growth: Pure-Pak and closures revenue grew by 9% in the quarter.
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America Revenue Growth: Sustained growth with a 7% increase for the year, totaling EUR 310 million.
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Cash Flow from Investments: EUR 98 million, driven by the US plant investment.
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Return on Capital Employed: Approximately 16%.
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Net Debt: Increased to EUR 263 million.
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Dividend Payout: EUR 35 million, with a yield of 4%.
Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Elopak ASA (STU:9J7) reported a strong Q4 2024 with core business growth of over 6%, despite global economic challenges.
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The company maintained a consistent EBITDA margin of 15%, slightly increasing from the previous year.
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Elopak ASA is expanding its production capacity in India and the Americas, which supports its global growth strategy.
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The company is leading in sustainability by replacing plastics with carton packaging, contributing to environmental goals.
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Elopak ASA is gaining market share in Europe and the Americas, particularly in the extended shelf-life milk and chilled milk segments.
Negative Points
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Revenue from filling machines declined due to timing issues and a shift towards more leased machines, impacting overall revenue.
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Operating costs increased due to staffing and R&D investments, affecting profitability.
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The company faces capacity constraints in the Americas, necessitating reliance on outsourcing, which affects margins.
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There is uncertainty regarding potential US tariffs, which could impact Elopak ASA's operations and customer costs.
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The company's growth in India is not yet sufficient to fully offset declines in other regions, such as Europe.
Q & A Highlights
Q: Can you elaborate on what's driving the market in India compared to Europe, especially in the plastic to carton segments? A: In India, we are expanding our rolled capacity, which will enable us to move into Pure-Pak, driven by the large milk market. The market is primarily driven by small portion packs for juice and alcohol, which have shifted from plastic to carton to prevent tampering and reduce plastic waste. Our growth in India is fueled by the overall market growth.