SIG records 6.0% revenue increase for first quarter of FY22

The company expects its full-year revenue to grow by 22-24% at constant currency rates.

European aseptic packaging provider SIG has reported that its total revenue was €496.7m ($526.35m) in the first quarter (Q1) of the fiscal year 2022 (FY22).

This figure represents a 6.0% increase on a constant currency basis from the corresponding period of FY21.

For the three months to 31 March, the company’s revenue in Europe increased by 1.0% from last year, while its Middle East and Africa (MEA) business saw its revenue increase by 8.8% year-on-year.

In the Asia-Pacific region, SIG saw its revenue increase by 6.5% at constant currency, while in the Americas, the company continued to grow after two ‘exceptional’ years and a ‘strong’ Q1 2021.

SIG reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of €118.7m in Q1, compared with €117.9m in the same period of last year.

Its adjusted EBITDA margin dropped to 23.9% from 26.1% in Q1 2021.

Driven by positive movements in EBITDA, SIG saw its net income increase from €2.9m in Q1 2021 to €53.1m ($56.2m) in Q1 2022.

For FY22, the company expects its full-year revenue to grow by 22-24% at constant currency rates and has forecast an adjusted EBITDA margin of around 26%.

In a statement, SIG said: “The group expects its business in Russia and Ukraine to be impacted by the war and the related sanctions. In 2021, sales from Russia and Ukraine amounted to less than 2% of group revenue.

“The most recent tightening of sanctions is expected to impact the full-year growth rate by approximately 100-150 basis points.”

In February, SIG agreed to purchase flexible packaging company Scholle IPN for an enterprise value of €1.36bn and an equity value of €1.05bn.

Earlier in the year, the company acquired Pactiv Evergreen’s carton packaging and filling machinery businesses in China, Korea and Taiwan, collectively known as Evergreen Asia, for around $335m.