According to preliminary results, sales increased by 8.6% to roughly €2.1 billion in 2016. Newly acquired Afripack (Food and Labels), Pemara (Labels) and Oai Hung (Pharma) contributed €152.3 million to sales. Adjusted for exchange rate effects and portfolio changes, organic sales growth was 1.5% year-on-year.
Operative EBITDA at Group level was €301.8 million, an increase of 14.7% compared to the previous year, driven by the aforementioned growth, as well as targeted savings projects and productivity increases. As a result, the EBITDA margin rose to 14.6% compared to 13.9%
The net result remained stable at €57.4 million. The recent acquisitions, mainly in the emerging markets, increased the number of employees (annual average) to 10,180 FTE at the end of the year.
“On behalf of the Board of Management, I would like to thank our dedicated employees for increasing sales and operating profit in 2016 – our seventh year in succession,” said Alexander Baumgartner, CEO of Constantia Flexibles. “We are especially pleased with the margin improvement and aim to further improve profitability by pushing ahead with our global growth strategy, focusing on selective end-markets in attractive regions with our customers.”
Sales of the Food Division increased by 6.8% to €1,204.3 million in 2016. The Food Division’s share of the Constantia Flexibles Group’s total sales was 56.7%. Growth in America in 2016 was especially encouraging for the Food Division. The business with film-based snack packaging achieved significant sales increases.
The Pharma Division’s sales increased by 5.6% to €312.6 million in 2016. The division’s share of Constantia Flexibles’s total sales was 14.2%. In addition to an increase in sales in the core European region, the share in the Emerging Markets was significantly improved through the acquisition of Oai Hung in 2016.
Sales in the Labels Division increased by 11.8% year-on-year to €604.7 million in 2016. The Labels Division’s share of Constantia Flexibles’s total sales was 29.1%. Market growth in 2016 was characterized by increasing demand for higher-value labels (primarily self-adhesive labels), particularly in the global beer market.