Announcement according to SIX adhoc publication article 53 KR

Reinach (pta006/24.08.2020/07:00) - Aluflexpack AG ("Aluflexpack", "Group"), a leading European manufacturer of premium flexible packaging solutions, managed to start successfully into the financial year 2020. Group net sales for the first six months of 2020 increased by +14.0% to EUR 115.5 million compared to H1 2019 as a result of stable demand in most of the company's end markets, also during the Coronavirus (COVID-19) pandemic. In the reporting period, the Group achieved an EBITDA of EUR 18.3 million. Excluding non-recurring effects, the EBITDA amounts to EUR 17.3 million (H1 2019: EUR 14.0 million). Capital expenditures decreased by -34.3% to EUR 11.2 million (H1 2019: EUR 17.0 million). In light of the current market environment, the Group confirms the outlook given in February 2020: Management expects net sales between EUR 220-230 million and an EBITDA before one-off items in a range of EUR 32-35 million.

Strong growth dynamics in a challenging environment

Aluflexpack is continuing its dynamic growth trajectory. In H1 2020, net sales for the Group amounted to EUR 115.5 million, up from EUR 101.3 million in H1 2019. This corresponds to a purely organic increase in net sales of 14.0%. This growth is a result of the Group's strong positioning in fast growing end markets and resilient demand across most of these markets. Despite a period characterized by uncertainties as well as dynamic markets and supply chains, the Group managed to satisfy customer needs through great responsiveness, uncompromised quality and agility.

"Thanks to close cooperation with all our partners and customers, we experienced no material interruptions in our supply chains. Strict compliance with protective measures and hygiene guidelines amongst our employees, together with good management of our operations, proved essential to ensure business continuity in challenging times: all of our plants have been fully operational up until today and we maintained stable production as well as supplies to our customers. We believe in the stability of our organization, are well equipped and look forward to further business development", says Igor Arbanas, CEO of Aluflexpack.

In H1 2020, Aluflexpack managed to expand business across most end markets, in particular coffee/tea (+39% yoy), pet food (+18%), dairy (+16%) and pharma (+15%). The Group's confectionery sales decreased by -18% due to negative effects of the pandemic on this year's Easter season, business interruptions and disruptions in confectionery sales channels for products the Group is supplying premium packaging for.

Sustainable earnings development

In the first six months of 2020, Aluflexpack achieved an EBITDA of EUR 18.3 million. Adjusted for net positive one-off effects, amongst others, in relation to further income from insurance payments for replacements of fixed assets in connection with the fire incident at the Group's French plant in June 2019, the EBITDA totalled EUR 17.3 million (H1 2019: EUR 14.0 million). This corresponds to a margin of 15.0%. The increase was mainly driven by positive levers from economies of scale and efficiency improvements, which outweighed COVID-19 related temporary cost increases for certain input materials.

Adjusted for one-off items, Aluflexpack's EBIT increased from EUR 6.5 million in the previous period to EUR 9.4 million in H1 2020, underlining the positive effects deriving from investments made over recent years. Net income was positive on a reported level, amounting to EUR 2.7 million in H1 2020 (H1 2019: EUR -8.0 million), and reflects elevated financial expenses as a result of negative valuation effects from outstanding raw materials hedges and foreign exchange losses.

Robust financial profile and business model

Aluflexpack maintains a sound financial profile: As of 30 June 2020, the Group's equity ratio stood at 62.6% (12/2019: 61.9%), including a net cash position of EUR 5.6 million. This gives the Group optionality to look for opportunities in the current environment. Despite the COVID-19 pandemic, the Group's strategic direction and business model remained unchanged in first six months of 2020. In line with its growth strategy, Aluflexpack invested EUR 11.2 million into its platform in H1 2020 (H1 2019: EUR 17.0 million). These investments relate mainly to capacity expansions in the Group's focus end markets that continue to exhibit strong demand trends.

Confirmation of outlook

The Group expects demand for its product solutions to remain firm throughout the rest of the business year 2020. In light of the current market environment and based on current visibility, the Management Board reaffirms the guidance given in February 2020, and expects net sales between EUR 220-230 million and an EBITDA before one-off items between EUR 32-35 million. However, the COVID-19 pandemic adds an element of uncertainty that cannot be entirely assessed from today's perspective.

*A detailed reconciliation from reported to adjusted figures can be found on pages 14 to 16 of Aluflexpack's Interim Report 2020 available on https://ir.aluflexpack.com/publications-3/?lang=en
**Balance sheet figures refer to year-end 2019 numbers.

About Aluflexpack AG

Aluflexpack produces flexible packaging solutions mainly for end markets such as coffee/tea, pharmaceuticals, pet food, confectionery and dairy. Well-established insights, service flexibility and development competence are what underpin long-term customer relationships; both with locally operating companies and large international corporations. Aluflexpack, headquartered in Reinach (AG), Switzerland, has production facilities in Switzerland, France and Turkey and four production facilities in Croatia. The number of employees as of 30 June, 2020 was approximately 1,248. http://www.aluflexpack.com

Disclaimer
Some of the information contained in this press release may be forward-looking statements. Aluflexpack AG cautions that such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. Aluflexpack AG undertakes no obligation to publicly update or revise any forward-looking statements.

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emitter: Aluflexpack AG
address: Alte Aarauerstrasse 11, 5734 Reinach
country: Switzerland
contact person: Lukas Kothbauer
phone: +43 664 8581124
e-mail: lukas.kothbauer@aluflexpack.com
website: www.aluflexpack.com

ISIN(s): CH0453226893 (share)
stock exchanges: listed in SIX Swiss Exchange

[ source: http://www.pressetext.com/news/20200824006 ]