NORWAY – Global supplier of carton packaging and filling equipment Elopak has reported a revenue of €278.0 million (US$302.36m) in Q2 of FY23, an increase of 8%.
Elopak’s organic growth was 6% or €14.6 million (US$15.88m), adjusted for currency translation effects and revenue from acquired businesses.
The company reported an adjusted EBITDA of €41.6 million (US$45.24m), an improvement of €15.1 million (US$16.42m).
Commenting on Elopak’s performance, CEO Thomas Körmendi said: “Building on our solid performance in past consecutive quarters, Q2 saw Elopak delivering strong profitable growth.
“Despite inflationary pressures, we remain on track to achieving our strategic objectives. Our strong performance allows us to explore new market opportunities, including building a new state-of-the-art factory in the US, and expanding our India operations.”
Looking forward, the company expects to deliver full-year revenue growth well above its mid-term target, reiterated Körmendi.
“While we see softening of some raw material prices, the liquid paper market remains tight and higher board prices will have full effect in the second half of 2023,” added Körmendi.
The significant inflationary pressures on the broader cost base will also impact our full-year EBITDA margin. However, based on expected revenue growth, our second-half EBITDA will be higher than last year.
“I am pleased to report this strong performance and remain eager and optimistic for continued sustainable packaging demand.”
US$50m investment in new US plant
In June, the company announced plans to invest US$50 million into a new plant in the US. The new plant will position Elopak to better serve its customers in the US and accelerate growth in the region.
Elopak says the investment – which includes lease liability – will be invested in the new plant over the next year and will be financed using the company’s existing revolving credit facility.
Lionel Ettedgui, Elopak’s EVP of North America, said: “Over the last few years, Elopak has delivered very strong profitable growth in the Americas.
“The time has now come to increase capacity to further strengthen our organization and enable us to provide quality service to our customers in the Americas faster and more efficiently.”
Elopak’s CEO, Thomas Körmendi, added: “I am truly excited about this investment. This is a response to the strong demand that we are seeing for our innovative and sustainable solutions. It is a landmark investment for our company as the Americas is one of the key building blocks of our strategy.”
The plant is slated to commence production in Q4 2024, creating over 100 new jobs.
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