SIG Group (SIGN) H2 2024 earnings summary

Executive summary

• Achieved 6% revenue growth in 2024, with carton segment up 6% and market share gains across all geographies; bag-in-box and spouted pouch revenue declined 5% but rebounded to 2.5% growth in H2 after operational improvements.

• Expanded global manufacturing with new plants in China, India, Mexico, and the USA, and approved further investment in India.

• Launched key innovations, including Alu-free barrier packaging, speed-up kits for fillers, and new aseptic spouted pouch and recyclable packaging.

• Recognized for sustainability with inclusion in the Dow Jones Sustainability Index, EcoVadis platinum status, and improved MSCI ESG rating to AAA.

• Board succession included new nominations, non-re-election of certain members, and legal disputes with Clean Holding B.V.

Financial highlights

• Full-year revenue reached €3.33 billion, up 4.3% at constant currency and 3.9% at constant currency and resin.

• Adjusted EBITDA rose to €820 million (2023: €803 million), margin at 24.6% (2023: 24.9%).

• Adjusted net income was €308 million (2023: €318 million); adjusted EPS €0.81 (2023: €0.83).

• Free cash flow increased over 30% to €290 million, driven by lower capex and higher customer incentives.

• Net capital expenditure, including leases, was €216 million (2023: €298 million), at 6.5% of revenue, below 7%-9% guidance.

• Return on capital employed steady at 27%; net leverage reduced to 2.6x.

• Dividend proposed to increase to CHF 0.49 per share, payout ratio at 50%-65% of adjusted net income.

Outlook and guidance

• 2025 revenue growth expected at 3%-5% (constant currency and resin); adjusted EBITDA margin guided at 24.5%-25.5%.

• Net capex (including leases) to remain within 7%-9% of revenue; dividend payout ratio 50%-60% of adjusted net income.

• Midterm guidance: revenue growth in upper half of 4%-6% range, adjusted EBITDA margin above 27%, net leverage target towards 2x.