Elopak (ELO) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2024 results, with 2.2% revenue growth to EUR 1,157m, robust carton and closure sales, and EBITDA margin improving to 15.2%, supported by global expansion and the "Repackaging Tomorrow" strategy.

• Expanded production capacity in India, advanced US plant project in Little Rock, and launched new sustainability initiatives.

• Maintained a solid balance sheet with leverage at 2.1x, despite significant CAPEX investments.

• Proposed dividend of EUR 0.13 per share for 2024, yielding 4.0%, in line with policy.

• Improved safety performance, with TRI reduced to 4.3 from 5.4 in Q3.

Financial highlights

• Q4 core business grew over 6% year-over-year; Q4 revenue declined 1.3% to EUR 283.5m due to timing of filling machine sales; full-year EBITDA margin reached 15.2%.

• Q4 EBITDA was EUR 40.8m (14.4% margin), up from EUR 40.1m (14.0%) in Q4 2023; full-year EBITDA at EUR 176.1m.

• EBIT remained flat at EUR 109m for 2024; ROCE at 15.9%.

• Net debt increased to EUR 370m, mainly due to US and India plant investments; leverage ratio held at 2.1x.

• Adjusted EPS stable at EUR 0.24; adjusted profit attributable to shareholders was EUR 64.8m.

Outlook and guidance

• Confident in meeting 2025 targets, aligned with 2030 goals of 4-6% organic revenue growth and 15-17% EBITDA margin.

• US plant in Little Rock to start production in H1 2025, ramping up in H2; India capacity doubled.

• 2025 expected to be an investment year, with no significant EBITDA margin ramp-up.

• CapEx for 2025 guided at 5-7% of revenues, with $35m remaining for Little Rock plant.

• Focus remains on executing the "Repackaging tomorrow" strategy, leveraging global growth and plastic replacement shift.