NORWAY – Global supplier of carton packaging and filling equipment Elopak has seen its revenue in Q1 of FY23 increase by 26%, to €283.4 million (US$311.33m), driven by growth in EMEA and Americas.
Elopak’s organic growth was 16% when adjusted for currency translation effects of €3 million (US$3.30m) and new revenue from acquired businesses of €18 million (US$19.77m).
The company’s adjusted EBITDA was €41.0 million (US$45.04m), an improvement of €16.0 million (US$17.58m) compared to the same period last year.
Commenting on Elopak’s performance in the first quarter, CEO Thomas Körmendi said: “Elopak has made a strong start to the year, with profitable, organic growth underpinned by our core strategic goals.
“In this quarter we have delivered excellent performance across our whole business, especially in India, where our newly acquired operations have delivered results that are far better than anticipated.
“We have experienced some tailwinds in terms of pricing and input costs and we will likely see some volatility between quarters going forward, we remain committed to achieving our strategic objectives and expect to continue to grow our top-line and strengthen our results.”
Körmendi added that the company is experiencing significant inflationary pressures on its costs, which it expects to impact its EBITDA margin in 2023 compared to the current level.
“However, our ongoing, strategic initiatives to continue to grow our top-line and strengthen our results are progressing according to plan. We remain optimistic on the longer-term market fundamentals,” he explained.
Berry Global’s Q2 FY23 sales drops 13%
Meanwhile, American packaging company Berry Global has registered net sales of US$3.3 billion in the second quarter (Q2) of the fiscal year 2023 (FY23).
This reflects a 13% decline on a reported basis and a 10% decline on a comparable basis in the company’s net sales of US$3.77 billion for the same period in FY22.
Berry said this downward trajectory is a result of decreased selling prices of US$143 million caused by pass-through of lower resin costs, US$80 million for unfavorable impact from foreign currency changes, a 6% volume decline and divestiture sales of US$42 million in the previous quarter.
The operating income for the reported quarter was US$301 million while the same was US$341 million in Q2 of FY22.
The company’s earnings per share (EPS) for Q2 FY23 stood at US$1.42, compared to an EPS of US$1.50 in the previous year’s Q2.
In Q1 FY23, the company reported net sales of US$3.06 billion, which now brings the ‘year to date’ (YTD) net sales for the first half of FY23 to US$6.34 billion.
Berry chair and CEO Tom Salmon said: “Our business delivered solid Q2 and first half results with adjusted EPS growth of 4% and 7%, respectively.
“During the past several quarters, we have seen supply chain constraints continue to ease, prioritized structural cost improvements and continued our efforts to pivot our portfolio to high-value growth products across all of our businesses.”
For the FY23 guidance, as on 4 May 2023, the company said its adjusted EPS is expected to range between US$7.30 to US$7.80.
The forecasted range for cash flow from operations is US$1.4 billion to US$1.5 billion, while the free cash flow range is US$800 million to US$900 million.
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