SIG Group (SIGN) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue grew 5.1% at constant currency, with resilience despite demand softness and strong carton performance; bag-in-box and spouted pouch segments showed sequential recovery and improvement.

• Operational bottlenecks in North America eased, improving efficiency and balancing supply and demand.

• Continued investments in India and China, with Indian aseptic sleeves plant on track for completion by end of 2024.

• Sustainability initiatives advanced, including expanded WWF Switzerland partnerships and Forest Positive efforts.

• Board nominated Ola Rollén for election as Chair at the 2025 AGM, marking a leadership transition.

Financial highlights

• Q3 2024 revenue was €825 million (+5.1% constant currency); adjusted EBITDA margin reached 25.0% (€206 million), up from 24.8% in Q3 2023.

• Adjusted net income for Q3 was €77 million; for nine months, adjusted net income was €198 million.

• Net CapEx for nine months was €129 million, down €100.9 million year-over-year.

• Free cash flow for Q3 was €78 million; for nine months, free cash flow improved to €1 million from -€80 million a year ago.

• Net leverage improved to 3.0x at September 30, 2024, from 3.2x a year earlier.

Outlook and guidance

• 2024 guidance confirmed: constant currency revenue growth expected around 4% ±50bps; resin escalator excluded from guidance.

• Adjusted EBITDA margin forecast at lower end of 24–25% range, subject to input costs and FX volatility.

• Net CapEx expected in lower half of 7–9% of revenues; dividend payout targeted at 50–60% of adjusted net income.

• Net leverage targeted to reduce to around 2.5x by year-end 2024.

• Adjusted effective tax rate forecast at 26–28%.