2023-10-11 19:02:03
Zurich (awp) – Packaging specialist Aluflexpack is lowering its ambitions for the current financial year and confirming its medium-term expectations.
The management of the Aargau company now expects a net turnover of 360-390 million euros this year (excluding the accounting effects of high inflation in Turkey), it said on Wednesday evening. Previously, the forecast was 390-430 million euros. As for Ebitda operating profit before extraordinary effects, it is expected at 45-50 million euros, compared to 50-55 million previously.
Weaker than expected demand in Europe is the cause of this downward revision, Aluflexpack explained. The weakness in demand is due to consumer restraint and destocking by certain customers. The delay in starting production at the Croatian plant in Drniš also played a role.
In the first half, the group recorded a clear increase in its sales year-on-year, but the progression weakened compared to the first quarter. In August, the company further confirmed its forecasts for 2023. In 2022, turnover stood at 357 million euros and adjusted Ebitda at 46.6 million.
As for the medium term, Aluflexpack confirms its organic turnover forecast of 450-500 million euros in 2025 with an Ebitda margin before extraordinary effects of 14-16%. Demand should normalize and the distribution pipeline gives cause for optimism.
Next year, the company will focus on generating free cash flow and reducing debt, after significant investments in recent years. This new phase begins in a robust position with an independent financing structure and assured liquidity.
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