Constantia Flexibles Reports Record Growth
- Published: March 31, 2017
VIENNA, AUSTRIA | Constantia Flexibles Group, global manufacturer of flexible packaging products and labels, surpassed annual sales of two billion euros in 2016 for the first time in its history. The company says both sales and earnings were boosted by contributions from newly acquired companies in growth markets—a key element of Constantia Flexibles’ global strategy.
According to preliminary results, sales increased by 8.6% to roughly €2.1 billion in 2016. Newly acquired Afripack (Food and Labels), Pemara (Labels), and Oai Hung (Pharma), contributed €152.3 million to sales. Adjusted for exchange rate effects and portfolio changes, organic sales growth was 1.5% year-on-year. This growth was achieved in all markets and was generated by volume increases, as well as improvements in the price and product mix.
Operative EBITDA at Group level was €301.8 million, an increase of 14.7% compared to the previous year, driven by the aforementioned growth, as well as targeted savings projects and productivity increases. As a result, the EBITDA margin rose to 14.6% compared to 13.9%. The net result remained stable at €57.4 million. The recent acquisitions, mainly in the emerging markets, increased the number of employees (annual average) to 10,180 FTE at the end of the year.
“On behalf of the board of management, I would like to thank our dedicated employees for increasing sales and operating profit in 2016—our seventh year in succession,” says Alexander Baumgartner, CEO of Constantia Flexibles. “We are especially pleased with the margin improvement and aim to further improve profitability by pushing ahead with our global growth strategy, focusing on selective end-markets in attractive regions with our customers.”
Sales of the Food Division increased by 6.8% to €1,204.3 million in 2016. The Food Division’s share of the Constantia Flexibles Group’s total sales was 56.7%.
The Pharma Division’s sales increased by 5.6% to €312.6 million in 2016. The Division’s share of Constantia Flexibles’s total sales was 14.2%.
Sales in the Labels Division increased by 11.8% year-on-year to €604.7 million in 2016. The Labels Division’s share of Constantia Flexibles’s total sales was thus 29.1%.
The complete annual report 2016 can be downloaded on April 28, 2017, at this link.
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