Cabka (CABKA) CMD 2024 summary

Reflecting on past events and performance

• Faced significant headwinds from 2022–2024, including raw material cost spikes, inflation, customer destocking, and US facility flooding.

• Revenue declined from €209m to €180–185m, with gross margin dropping from over 50% to below 40%.

• EBITDA margin fell below 11%, with extra US capex of ~€25m for facility restoration and modernization.

• Actions included pricing adjustments, energy hedging, cost cutting, market diversification, and US plant upgrades.

• Operational improvements have restored gross margin above 50% and EBITDA margin to around 13%.

Current financial and operational overview

• 2024 sales expected at €180–185m, with current capacity at €240m.

• Key segments show volume growth, offsetting a 5% revenue impact from market normalization.

• Focus on in-house production and operational efficiencies has improved margins.

• Fixed cost base remains stable despite inflationary pressures.

• EBITDA margin is around 13%, with further enhancements in sales organization.

Market trends and legislative developments

• Global RTP market expected to grow at 4% CAGR, with reusable and recycled plastics outpacing traditional feedstocks.

• EU Packaging and Packaging Waste Regulation (PPWR) supports focus on reusability, recyclability, and high recycled content (>80%).

• Market trends such as sustainability, digitalization, and automation drive demand for solutions.

• Products are already compliant with upcoming regulatory requirements.

• Pooling and standardized labelling present further growth opportunities.