SIG Group AG Reports Quarter-on-Quarter Improvement in Key Performance Indicators

SIG Group AG has reported a sequential improvement in key performance indicators (KPIs) for Q2 2024, as detailed in their H1 2024 results. Revenue grew by 5.7% at constant currency in Q2, following a stagnant Q1, leading to a 3.0% growth for H1 2024. Despite this, the adjusted EBITDA margin for the half year decreased to 23.5% from 24.9% in H1 2023.

CEO Samuel Sigrist noted significant revenue growth in the carton segment, contrasting with lower-than-expected performance in the bag-in-box segment due to production constraints. The company anticipates improvements in this area going forward. Guidance for 2024 has been updated to reflect 4% revenue growth and an adjusted EBITDA margin in the lower end of the 24-25% range.

Regionally, Europe saw a 6.4% revenue increase, while IMEA experienced 11.0% growth. The Americas faced a decline, with a 4.1% revenue drop. Adjusted net income fell to €120.2 million, primarily due to higher interest expenses.

SIG confirmed mid-term guidance, expecting revenue growth in the upper half of the 4-6% range and an adjusted EBITDA margin above 27%. The company's net leverage ratio increased to 3.2x from 2.7x, with a target reduction to 2.5x by year-end.