CONSTANTIA FLEXIBLES
Higher volumes and acquisitions boost profits in 2015 / Prospects good for 2016 / Cost competitiveness and operational efficiency initiatives continue
A strong increase in sales volumes has bolstered 2015 profits for flexible packaging producer Constantia Flexibles (Vienna / Austria; www.cflex.com). Preliminary results show that 2015 sales grew by 9.4% year-on-year to reach EUR 1.89 bn, with operating profit (EBITDA) up by 3% to EUR 263m. Constantia said strong sales growth was seen across all business divisions in all regions, and was also helped by the acquisitions of Afripack and Pemara – see Plasteurope.com of 17.12.2015 and 13.11.2015, respectively.
 In the food division the slight decrease in the margin was due to above-average growth, both in the field of plastic-based products and in the emerging markets and the resultant shift in the product and regional mix (Photo: Constantia Flexibles) |
Food division sales were EUR 1.1 bn, a year-on-year rise of 7.5% and operating profit was EUR 154m, a rise of 2.2% versus 2014. Constantia said it was particularly pleased with the growth of key account customers in Europe. In North America and emerging markets, sales to the snack packaging sector grew significantly, particularly through its plants in Mexico and India.
Operating profit in the pharma business grew by 3.9% year-on-year to EUR 49m on sales 7.9% higher at EUR 296m. Growth was driven by the coldform, sachet and blister product groups – the first two registered double-digit increases – and resulted from rising demand for high-density packaging materials for highly sensitive pharmaceuticals.
Constantia said it achieved high and above market average sales growth in western Europe and America. Sales in the Middle East and Asia also increased by a high double-digit percentage, but declined slightly in eastern Europe.
Sales in the Labels division were 11.7% higher compared with the year before at EUR 541m with double-digit growth realised in North and South America, Africa and Asia-Pacific. Sales in Europe remained stable. Operating profit was EUR 94m, a year-on-year increase of 7%. The company said new developments, such as recycling-friendly and haptically enhanced self-adhesive labels and various in-mould labels, significantly contributed to the growth in sales.
Looking ahead, Constantia is positive about prospects for 2016, predicting sales and operating profit to grow year-on-year, with a focus towards more profitability and cash generation. It said it was targeting better quality earnings through cost competitiveness while ongoing operational excellence activities to improve production processes would improve efficiency further.
Operating profit in the pharma business grew by 3.9% year-on-year to EUR 49m on sales 7.9% higher at EUR 296m. Growth was driven by the coldform, sachet and blister product groups – the first two registered double-digit increases – and resulted from rising demand for high-density packaging materials for highly sensitive pharmaceuticals.
Constantia said it achieved high and above market average sales growth in western Europe and America. Sales in the Middle East and Asia also increased by a high double-digit percentage, but declined slightly in eastern Europe.
Sales in the Labels division were 11.7% higher compared with the year before at EUR 541m with double-digit growth realised in North and South America, Africa and Asia-Pacific. Sales in Europe remained stable. Operating profit was EUR 94m, a year-on-year increase of 7%. The company said new developments, such as recycling-friendly and haptically enhanced self-adhesive labels and various in-mould labels, significantly contributed to the growth in sales.
Looking ahead, Constantia is positive about prospects for 2016, predicting sales and operating profit to grow year-on-year, with a focus towards more profitability and cash generation. It said it was targeting better quality earnings through cost competitiveness while ongoing operational excellence activities to improve production processes would improve efficiency further.
06.04.2016 Plasteurope.com [233758-0]
Published on 06.04.2016
German version of this article...