SIG Group (SIGN) H1 2025 earnings summary

Executive summary

• Achieved 2.6% revenue growth at constant currency in H1 2025, with carton up 2.6% and bag-in-box/spouted pouch stable, despite subdued market conditions and lower consumer purchasing power.

• Gained market share across key regions, driven by innovation, volume flexibility, and successful cross-selling projects.

• Launched alu-free packaging for high-acid products and entered strategic partnerships for paper-based closures, advancing sustainability goals.

• Completed major refinancing, including €625 million in new bonds, redeeming 2020 Eurobond and extending debt maturities, reducing average group interest rate by 50bps.

• Dividend of CHF 0.49/share (€202.7 million) paid in April 2025.

Financial highlights

• H1 2025 revenue reached €1,579 million, up 2.6% at constant currency; adjusted EBITDA €372 million (23.6% margin), up from €369 million.

• Adjusted net income rose to €136 million from €120 million; net income €91.0 million, up from €84.9 million.

• Free cash flow for H1 was negative €140 million, down from negative €77 million, impacted by higher customer incentive payments and FX.

• Net capital expenditure (including leases) was €110 million (6.9% of revenue), down from €129 million (8.2%).

• Net leverage ratio at 3.0x as of June 30, 2025, improved from 3.2x prior year.

Outlook and guidance

• FY 2025 revenue growth at constant currency and resin narrowed to lower half of 3%-5% range; adjusted EBITDA margin expected at lower end of 24.5%-25.5%.

• Net capex (including leases) projected in lower half of 7%-9% of revenue; adjusted effective tax rate expected at 26%-28%.

• Mid-term guidance confirmed: revenue growth in upper half of 4%-6% range, adjusted EBITDA margin above 27%, net leverage towards 2x, dividend payout 50%-60% of adjusted net income.