SIG Capital Markets Day 2023: Creating superior value with innovative packaging solutions for a more sustainable world

Press release
November 22, 2023

SIG Capital Markets Day 2023
Creating superior value with innovative packaging solutions for a more sustainable world

At today’s Capital Markets Day, SIG Group AG (“SIG” or “Company”) will provide a deeper insight into its strategy and business model that delivers crucial nutrition to the growing world population in a safe, sustainable, and affordable way. The Company's mid-term financial guidance remains unchanged.

As a leading aseptic solutions provider of packaging for better – better for customers, for consumers, and for the world – SIG offers a unique portfolio of sustainable carton, bag-in-box, and spouted pouch solutions leveraging its distinctive technological and innovation capabilities. These solutions provide SIG customers with exceptional packaging flexibility and sustainability which are the basis for long-term customer relationships ensuring reliable and recurring revenues and cash flows.

The Capital Markets Day is hosted in Linnich (Germany). At this important production site, the leadership team will demonstrate how it aims to create additional value for customers and shareholders by further leveraging its established packaging platform. Participants will also have the opportunity to experience SIG’s technology and operations on a site visit. In addition, management will show how the Company is driving industry-leading innovation in its five Technology Centers worldwide in the areas of filling, packaging and material science, and present the regional go-to-market strategies.

The Company maintains its mid-term revenue growth guidance of 4-6% at constant currency supported by market growth, share gains driven by packaging innovation and high-performance filler technology as well as emerging market expansion, category and channel developments.

The adjusted EBITDA margin is expected to be above 27% in the mid-term driven by operational leverage, efficiency gains, footprint optimization and innovation.

SIG expects to continue to deliver strong cash generation and the Company maintains its mid-term leverage guidance of towards 2x, with a milestone of around 2.5x at the end of 2024. SIG also expects to maintain its policy of progressive growth of its absolute dividend with a pay-out ratio of at least 50-60% of adjusted net income.

Samuel Sigrist, Chief Executive Officer of SIG, said: "SIG is setting industry standards for the packaging of liquid food and beverages. We aim to supply the growing world population with crucial nutrition in a safe, sustainable, and affordable way. With our established platform, we will drive innovation and expand our business in terms of geography, categories, and channels. Our distinctive business model, as well as our culture of innovation and sustainability uniquely positions SIG to achieve above market growth and deliver superior value to shareholders."

Forward. For better.

Documents and replay

Today’s presentations are available on www.sig.biz/investors where a replay of the stage presentations as well as a summary of the event will be accessible within the next days.

Investor contact:

Ingrid McMahon
Head of Investor Relations
Tel: +41 52 543 1224
Email: Ingrid.mcmahon@sig.biz

Media contact:

Andreas Hildenbrand
Lemongrass Communications
Tel: +41 44 202 5238
Email: andreas.hildenbrand@lemongrass.agency 

About SIG

SIG is a leading solutions provider of packaging for better – better for our customers, for consumers, and for the world. With our unique portfolio of aseptic carton, bag-in-box, and spouted pouch, we work in partnership with our customers to bring food and beverage products to consumers around the world in a safe, sustainable, and affordable way. Our technology and outstanding innovation capabilities enable us to provide our customers with versatile packaging systems and solutions for innovative products and smart operations, all to address the ever-changing needs of consumers. Sustainability is integral to our business and guides us on our journey to create packaging for better - packaging that gives more to people and the planet than it takes out.Founded in 1853, SIG is headquartered in Neuhausen, Switzerland, and is listed on the SIX Swiss Exchange. The skills and experience of our approximately 9,000 employees worldwide enable us to respond quickly and effectively to the needs of our customers in over 100 countries. In 2022, SIG produced 49 billion packs and generated €3.1 billion in pro forma revenue (incl. unaudited revenue from recent acquisitions). SIG has an AA ESG rating by MSCI, a 13.4 (low risk) score by Sustainalytics, a Platinum CSR rating by EcoVadis, and is included in the FTSE4Good Index. For more information, visit our website.

For insights into trends that drive the food and beverage industry, visit the SIG blog.

Disclaimer & cautionary statement

The information contained in this media release and in any link to our website indicated herein is not for use within any country or jurisdiction or by any persons where such use would constitute a violation of law. If this applies to you, you are not authorized to access or use any such information.

This media release contains “forward-looking statements” that are based on our current expectations, assumptions, estimates and projections about us and our industry. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words “may”, “will”, “should”, “continue”, “believe”, “anticipate”, “expect”, “estimate”, “intend”, “project”, “plan”, “will likely continue”, “will likely result”, or words or phrases with similar meaning. Undue reliance should not be placed on such statements because, by their nature, forward-looking statements involve risks and uncertainties, including, without limitation, economic, competitive, governmental and technological factors outside of the control of SIG Group AG (“SIG”, the “Company” or the “Group”), that may cause SIG’s business, strategy or actual results to differ materially from the forward-looking statements (or from past results). For any factors that could cause actual results to differ materially from the forward-looking statements contained in this media release, please see our offering circular for the issue of notes in June 2020. SIG undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. It should further be noted that past performance is not a guide to future performance. Please also note that quarterly results are not necessarily indicative of the full-year results. Persons requiring advice should consult an independent adviser.

The declaration and payment by the Company of any future dividends and the amounts of any such dividends will depend upon SIG’s ability to maintain its credit rating, its investments, results, financial condition, future prospects, profits being available for distribution, consideration of certain covenants under the terms of outstanding indebtedness and any other factors deemed by the Directors to be relevant at the time, subject always to the requirements of applicable laws.

The information contained in this media release is not an offer to sell or a solicitation of offers to purchase or subscribe for securities. This media release is not a prospectus within the meaning of the Swiss Financial Services Act nor a prospectus under any other applicable laws.

Some financial information in this media release has been rounded and, as a result, the figures shown as totals in this media release may vary slightly from the exact arithmetic aggregation of the figures that precede them.

In this media release, we utilize certain alternative performance measures, including but not limited to EBITDA, adjusted EBITDA, adjusted EBITDA margin, net capex, adjusted net income, free cash flow and net leverage ratio that in each case are not defined in International Financial Reporting Standards (“IFRS”). These measures are presented as we believe that they and similar measures are widely used in the markets in which we operate as a means of evaluating a company’s operating performance and financing structure. Our definition of and method of calculating the alternative performance measures stated above may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS or other generally accepted accounting principles, are not measures of financial condition, liquidity or profitability and should not be considered as an alternative to profit from operations for the period or operating cash flows determined in accordance with IFRS, nor should they be considered as substitutes for the information contained in our consolidated financial statements. You are cautioned not to place undue reliance on any alternative performance measures and ratios not defined in IFRS included in this media release.

Alternative performance measures

For additional information about alternative performance measures used by management (including reconciliations to measures defined in IFRS and the refined definitions of adjusted net income, free cash flow and net capital expenditure) is included in the consolidated financial statements for the year ended December 31, 2022 and in the consolidated interim financial statements for the six months ended June 30, 2023.  

Definitions of the Group’s alternative performance measures can be found at the following link:^{https://www.sig.biz/investors/en/performance/definitions}