SIG Group (SIGN) H2 2024 earnings summary

Executive summary

• Achieved revenue growth of up to 6% in 2024, with carton segment up 6% and market share gains across all geographies.

• Bag-in-box and spouted pouch revenue declined 5% for the year but rebounded to 2.5% growth in H2 after operational improvements.

• Expanded global manufacturing with new plants in China, India, Mexico, and the USA, and approved further expansion in India.

• Launched key innovations, including Alu-free barrier packaging, recycle-ready bag-in-box, and new aseptic spouted pouch filler.

• Recognized for sustainability with inclusion in Dow Jones Sustainability Index, EcoVadis platinum status, and improved MSCI ESG rating to AAA.

Financial highlights

• Full-year revenue reached €3.33 billion, up 4.3% at constant currency and 3.0% as reported.

• Adjusted EBITDA increased to €820 million, margin at 24.6% (2023: 24.9%).

• Adjusted net income was €308 million, slightly below prior year due to higher depreciation, interest, and tax expense.

• Free cash flow rose to €290 million, up over 30% year-over-year, driven by lower capex and one-off inventory benefit.

• Net leverage reduced to 2.6x; return on capital employed stable at 27%.

• Dividend proposed at CHF 0.49 per share, payout ratio 50–65% of adjusted net income.

Outlook and guidance

• 2025 revenue growth guidance at constant currency: 3–5%; adjusted EBITDA margin expected between 24.5% and 25.5%.

• Net CapEx (including leases) projected at 7–9% of revenue.

• Adjusted effective tax rate forecast at 26–28%; dividend payout expected at 50–60% of adjusted net income.

• Midterm guidance: revenue growth in upper half of 4–6% range, adjusted EBITDA margin above 27%, leverage target towards 2x.