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Constantia Flexibles reports record year

July 11, 2014

Sales increased by 29 percent compared to the previous fiscal year

Constantia Flexibles achieved record earnings in the past fiscal year, with sales increasing by 29 percent compared to the previous year, and labels up 45 percent.

Sales including acquisitions on an annualized basis reached 1.7 billion EUR (2.4 billion USD) in 2013. Of this, 25 percent came from the companies acquired, while organic growth accounted for four percent. The annualized operative earnings before interest, taxes, depreciation and amortization (EBITDA) were 240 million EUR (332 million USD), up from 188 million EUR (260 million USD), which corresponds to a 28 percent increase.
 
Constantia Flexibles said its positive results are due to a ‘pleasing sales growth, margin and cost management and an improved product mix by innovations’.
 
The Labels business unit was Constantia Flexibles’ standout performer in 2013, increasing sales by 45 percent to 410 million EUR (567 million USD). Growth was fuelled largely by acquisitions, such as of Spear and Grafo Regia. The supplier said activity in its labels business was characterized by a strategic realignment and efficiency increases, although it noted that sales in 2013 in the were slowed by the cooler weather in important markets, which impacted sales in the soft drink and brewing industries.
 
In food, sales increased by 23 percent in the annual comparison to just over one billion EUR, 18 percent coming from the acquisitions of Aluprint and Parikh Packaging, and five percent was organic due to growth especially in the regions North America and Africa/Middle East. Constantia Flexibles said markets in Western Europe demonstrated stable development, while Eastern Europe recorded significant growth due to consumer behavior approaching Western European standards. North America, with a boom in dairy products, and Asia and Latin America, with their growing middle classes, also demonstrated growth.
 
In 2013, the pharmaceutical market continued to grow in North America, the Middle East/Africa and Asia, especially in the generics sector and due to innovative drug delivery options. Sales in this segment increased by two percent to 275.6 million EUR. This performance has created a ‘solid basis for further successful business’ and for the current fiscal year, Constantia Flexibles said the focus lies on an increased market presence in the growth regions as well as the continued integration of the group, especially the further efficiency and earnings improvement of the acquired companies.‘The good start into the business year 2014 shows that the profitable growth course will be continued,’ it said in its 2013 sales and earnings report.

Thomas Unger, chief executive officer of Constantia Flexibles, said: ‘The acquisitions in Mexico, the US and India last year are milestones in our strategy of globalization. We could achieve significant growth both in sales and in operative earnings. We will continue our path of sustained value increase by profitable growth.’

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