AUSTRIA – ALPLA Group, a global packaging giant, has reported a turnover of €4.7 billion (US$5.1 billion) for the financial year 2023, showcasing its resilience and growth in pharmaceutical products and recycling capacities.
Although the annual turnover for 2023 experienced a slight decline of approximately 8% compared to the record results of €5.1 billion (US$5.56 billion) the previous year, ALPLA highlights that lower material and energy costs, coupled with exchange rate factors, contributed to this modest decrease while maintaining stable value-added.
The company noted robust growth in Africa, despite weaker demand in North and Central America and China.
ALPLA is steadfast in its commitment to using 25% recycled materials in its products and emphasized its strategic investments and innovations in various sectors.
CEO Philipp Lehner stated, “The year of high costs was followed in 2023 by a year of mixed demand and fluctuation industry-wide. We nevertheless generated stable value-added, invested extensively, developed innovative products, and built up our capacities, laying the foundations for long-term growth.”
ALPLA expanded its presence in growth markets such as Africa and Asia while addressing stagnated demand in North and Central America and China.
Investments in new production plants worldwide, recycling facilities, technologies, and strategic acquisitions marked the company’s commitment to future development.
The company’s annual turnover experienced a moderate decline, reflecting the industry-wide normalization of material costs and correcting the high levels seen in 2022.
Exchange rate factors also played a role in this adjustment. ALPLA directed its focus on growth markets in Africa, Asia, and North America, planning investments in injection molding and recycling.
In 2023, ALPLA intensified its involvement in pharmaceutical packaging through the Alpla pharma brand, leveraging a joint venture with Inden Pharma and expanding capacities in Europe.
The development and sale of large-volume containers for industrial applications were initiated under the new Alpla industrial brand.
Entering the pump market and becoming the majority shareholder of the Danish company Paboco, ALPLA expanded its portfolio as a system provider.
The company is actively contributing to the promotion of fully recyclable paper bottles through this strategic move.
Despite a slight drop in demand in 2023, ALPLA remains on track with its recycling goals. The company aims to use at least 25% recycled material in its packaging by 2025, with the current figure standing at around 20%.
To meet resource needs, ALPLA focuses on high-quality recycled PET and HDPE produced in-house, investing over €50 million (US$54 million) annually in new facilities, production lines, and technologies.
The installed and projected output capacity was increased to 350,000 tons in 2023, emphasizing the growing significance of this business line.
“The sharp increase in demand for recycled HDPE confirms our strategy. We serve global customers as a strong partner, offering them high-quality solutions around the world,” states the company. Further investments in the recycling sector are anticipated in 2024.
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