Ad hoc announcement according to article 53 KR
Aluflexpack AG: Solid results achieved in 2021 and outlook for 2022 confirmed
Reinach (pta036/17.03.2022/18:00 UTC+1)
Aluflexpack AG (hereinafter referred to as "Aluflexpack", "Group"), a leading European manufacturer of premium flexible packaging solutions, today presents its financial results for 2021 and looks back on a strong financial year in which audited full-year net sales increased by 11.1% to €266.1m (2020: €239.4m). In the same period, the adjusted EBITDA rose to €41.8m, equating to a margin of 15.7% (2020: €37.4m and 15.6%, respectively). This performance is thanks to operational improvements, efficiency gains and the successful scaling of the business model outweighing the impact of rising costs for input materials. The Group’s adjusted EBIT amounted to €20.3m in 2021 (2020: €20.0m), while operating cash flow increased sharply to €38.3m (2020: €26.1m). In the months ahead, the focus will be on implementing a one-of-a-kind expansion project at the Group’s plant in Drniš (Croatia). Despite current geopolitical developments, the Management Board is confident that business and the supply chain will remain stable and thus confirms its 2022 outlook dated 8 February.
Continued robust demand
With today’s press release, the Group confirms the preliminary sales figures for 2021 published on 8 February of this year: an 11.1% increase in net sales to €266.1m (2020: €239.4m). Despite the exceptionally high demand observed in several end markets in the first half of 2020 and weaker-than-expected demand in the Pharmaceutical end market, Aluflexpack achieved an organic growth rate of 8.6% in 2021. This strong growth is the result of solid demand for on-the-shelf food and pet food products and an excellent customer and product portfolio.
Solid development of results
The Group recorded an adjusted EBITDA of €41.8m in 2021 (2020: €37.4m). This equates to an increase of 11.9% compared with the previous year, and a margin of 15.7% (2020: 15.6%). Earnings in the second half of the year were partly reflecting the impact of rising prices for input materials that are not subject to automatic pass-through mechanisms or hedged, such as liquids, plastics and packaging. However, this impact was outweighed by operational improvements, efficiency gains stemming from previous investments into the Group’s platform and the successful scaling of the business model, as shown by the decrease in the relative share of personnel and other operating costs.
In 2021, the Group achieved an adjusted EBIT of €20.3m (2020: €20.0m), which reflects increased depreciation expenses as a result of Group investments from previous periods. Net income reached €14.2m in 2021 (2020: €9.0m), reflecting positive operational developments.
Strong operating cash flow and sound financial profile
The increase in business drove up operating cash flow, which amounted to €38.3m in 2021 (2020: €26.1m). With the major expansion project in Drniš advancing as planned, net cash flows from investing activities amounted to €- 45.9m (2020: €-32.9m). Net cash flows from financing activities came to €- 20.4m in 2021 (2020: €-11.5m), consisting of financial liability repayments, including a financial liability for the acquisition of the remaining shares (20%) in the Group’s Turkish subsidiary and lease liability payments, among other things.
The Group recorded a net debt position of €32.4m as of 31 December 2021, which equates to a ratio of net debt to EBITDA of 0.8x. The Group’s sound financial profile is underlined by its equity ratio, which amounted to 60.2% as of 31 December 2021. The Group’s return on capital employed (ROCE) decreased from 11.7% in 2020 to 10.3% in 2021 as a result of an increased capital base. At the Annual General Meeting of Shareholders in May, the Board of Directors will propose not to distribute a dividend for 2021, based on the firm belief that the most shareholder value can be created by allocating the available funds to the Group’s growth projects.
Outlook confirmed
From today’s perspective, in spite of the current geopolitical environment, the Group’s Management Board is confident in the stability of the Group’s business and supply chain. The outlook for 2022 of net sales in a range of €310m and 330m, and for EBITDA before special effects between €35m and €40m is therefore confirmed. Aluflexpack continues to monitor the situation in Ukraine and Russia closely. As of today, the Group expects limited impact on its sales, since net sales to customers from both countries only account for less than 1% of total net sales on an aggregate basis.
Johannes Steurer, the Group’s CEO, says: "2021 marked another successful year for our Group. In the months ahead, our focus will be on implementing a one-of-a-kind expansion project at our plant in Drniš, which will double our foil conversion capacities and further strengthen our vertical integration. Together with targeted cost and efficiency measures, this will lay the foundation for a return to previous profitability levels. At the same time, we will focus more intensively on innovation and sustainability to boost value-adding and sustainable growth over the coming years. There will be a growing need for sustainable and circular packaging solutions – and thanks to our product portfolio and targeted efforts, we are ideally positioned to benefit from this development."
| For the twelve months ended 31 December, | ||||||
| Performance indicator[1] | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
| Net sales (€m) | 144.1 | 160.6 | 181.7 | 207.9 | 239.4 | 266.1 |
| Net sales growth (year-on-year; %) | 8.2% | 11.4% | 13.1% | 14.4% | 15.2% | 11.1% |
| EBITDA (€m) | 14.4 | 18.1 | 21.5 | 19.2 | 36.4 | 42.3 |
| EBITDA before special effects (€m) | 14.4 | 18.1 | 21.6 | 29.5 | 37.4 | 41.8 |
| EBITDA margin before special effects (%) | 10.0% | 11.3% | 11.9% | 14.2% | 15.6% | 15.7% |
| EBIT (€m) | 1.7 | 4.3 | 6.4 | 0.6 | 17.4 | 19.4 |
| EBIT before special effects (€m) | 3.3 | 5.9 | 8.0 | 13.8 | 20.0 | 20.3 |
| EBIT margin before special effects (%) | 2.3% | 3.7% | 4.4% | 6.6% | 8.3% | 7.6% |
| Result for the period (€m) | -0.6 | 0.2 | -1.3 | -3.4 | 9.0 | 14.2 |
| Cash flow from operating activities (€m) | 8.9 | 14.7 | 11.9 | 15.5 | 26.1 | 38.3 |
| Cash flow from investing activities (€m) | -12.6 | -21.1 | -21.2 | -32.8 | -32.9 | -45.9 |
| Cash flow from financing activities (€m) | -1.5 | 8.4 | 24.4 | 60.1 | -11.5 | -20.4 |
| Equity ratio (%) | 19.6% | 16.1% | 13.2% | 61.9% | 61.6% | 60.2% |
| Net debt (cash) | 67.0 | 82.1 | 100.5 | -12.1 | 6.0 | 32.4 |
| Total assets (€m) | 132.0 | 156.6 | 196.9 | 278.4 | 282.7 | 301.7 |
| ROCE (%) | 3.8% | 5.9% | 6.9% | 9.6% | 11.7% | 10.3% |
| Employees (number) | 904 | 1,001 | 1,128 | 1,215 | 1,296 | 1,342 |
About Aluflexpack AG
Aluflexpack produces flexible packaging solutions for end markets such as Coffee & Tea, Pharmaceuticals, Pet food, Confectionery and Dairy. Its long-lasting customer relationships with locally operating companies and large international corporations alike are underpinned by well-established industry insights, flexibility in customer service and development competence. Headquartered in Reinach (Aargau), Switzerland, Aluflexpack has production facilities in Switzerland, France, Poland, Turkey and Croatia. It had 1,342 employees as of 31 December 2021.
Disclaimer
Some of the information contained in this press release may be forward-looking in nature. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, meaning that actual results may differ materially from those in this press release as a result of various factors. Aluflexpack AG is not obliged to publicly update or revise any forward-looking statements.
[1]A detailed reconciliation of the reported and adjusted figures, as well as an overview of additional performance indicators, can be found on pages 59-62 of the Annual Report 2021. The balance sheet figures in this table pertain to end-of-period figures.
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| Emitter: |
Aluflexpack AG Alte Aarauerstrasse 11 5734 Reinach Switzerland |
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|---|---|---|
| Contact Person: | Biko Hüster | |
| Phone: | +436648581139 | |
| E-Mail: | biko.huester@aluflexpack.com | |
| Website: | www.aluflexpack.com | |
| ISIN(s): | CH0453226893 (Share) | |
| Stock Exchange(s): | SIX Swiss Exchange |