SWITZERLAND – Aseptic carton packaging supplier SIG has reported total revenue of €1.54 billion (US$1.70bn) in H1 FY23, up 35.1% at a constant currency rate compared to the same period in FY22.

Regionally, revenue in Europe increased by 24.5% on a reported basis while in the APAC and Americas segments, revenue increased by 24.5% and 48.2%, respectively.

For the period ending 30 June, the company’s net income declined to €52.6 million (US$58.59m) from €66.6 million (US$74.18m) in H1 2022.

SIG saw its earnings before interest, taxes, depreciation, and amortization (EBITDA) increase to €350.1 million (US$389.97m) in H1 FY23 from €238.0 million (US$265.10m) a year ago.

Its diluted earnings per share for the period was €0.14 against €0.19 in H1 FY22.

In the second quarter of FY23, SIG registered total revenue of €811.0 million (US$903.36m), up from €645.9 million (US$719.46m) in the prior year’s fiscal quarter. Its net income for the quarter rose to €29.6 million (US$32.97m) from €13.5 million (US$15.04m) last year.

For the full year 2023, SIG expects revenue growth of 20-22% at constant currency. It also expects its adjusted EBITDA margin to increase by 50-150 basis points, implying a range of 24-25%.

SIG Group AG’s CEO Samuel Sigrist said: “We are recovering cost inflation and our adjusted EBITDA margin has improved despite the foreseen dilutive impact of acquisitions.

“These acquisitions are meeting our expectations and we continue to identify and realize cross-selling opportunities between our aseptic carton and bag-in-box, spouted pouch and chilled carton businesses.

“These, together with our strong pipeline of aseptic carton filling lines, will underpin robust revenue growth in the years ahead.”

Net capital expenditure is forecast to be within a range of 7-9% of revenue and the dividend pay-out ratio is expected to be within a range of 50-60% of adjusted net income.

Avery Dennison’s net income down 53% in Q2 FY23

Elsewhere, US-based manufacturer and distributor of pressure-sensitive adhesive materials, Avery Dennison has reported a net income of US$100.4 million for the second quarter (Q2) of 2023, representing a 53% decline from US$214.5 million in Q2 2022 (FY22).

The company said its reported earnings per share (EPS) was US$1.24 for the quarter while it was US$2.61 during the same period in 2022.

The net sales for this quarter, which ended on 1 July 2023, were US$2.1 billion. It reflects a decrease of 10.9% on a reported basis from the net sales of US$2.3 billion in Q2 of the previous year.

In terms of specific segments, Avery Dennison’s Materials Group witnessed a 12.6% decrease, on a reported basis, in net sales to US$1.47 billion from US$1.68 billion a year ago.

The net sales of its Solutions Group stood at US$614.5 million, down by 6.5%, on a reported basis, compared to US$657.5 million in Q2 of 2022.

The company’s adjusted earnings before interest, taxes, depreciation, and amortization totaled US$307.8 million versus US$384 million in Q2 FY22.

Avery’s chair and CEO Mitch Butier said: “Volumes in our Materials businesses continue to recover from slow market conditions, largely destocking, while our Intelligent Labels platform accelerates adoption into new categories.

“While it’s good to see the continuing sequential improvements in our Materials businesses and the building momentum in Intelligent Labels, the pace of our recovery is slower than anticipated.”

For the first half (H1) of FY23, Avery registered a net income of US$221.6 million while the previous year’s H1 net income was US$412.7 million.

For the upcoming Q3 FY23, the company is expecting its reported EPS to range between US$1.70 to US$1.90.

Avery president and COO Deon Stander added: “We remain confident this period of challenging results will soon pass.

“Our leadership positions in large diverse growing markets, the strategic foundations we have laid, and the dedication and expertise of our team positions us well to continue to deliver GDP+ growth and top-quartile returns over the long run.”

For all the latest packaging and printing industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook, and subscribe to our YouTube channel.