Elopak ASA

Earnings Release • Oct 26, 2022

Elopak’s third quarter (Q3) 2022: Strong performance in challenging times

Elopak’s third quarter (Q3) 2022: Strong performance in challenging times

(Oslo, October 26, 2022) Elopak today reported a 26% revenue growth in Q3, driven by successful price initiatives in EMEA and another strong performance in Americas. Adjusted EBITDA grew by 7%, despite higher input costs.

Highlights from Q3 2022:

• Reported revenue increased by 26%, to EUR 272.4 million, driven by growth in EMEA and Americas

• Organic growth was 15.2% adjusted for currency translation of EUR 13.9 million and new revenue from acquired businesses of EUR 12.1

• Price increases in the quarter compensated for the continued rise in raw material costs of approximately EUR 17 million

• Adjusted EBITDA was EUR 32.0 million, which is an improvement of EUR 2.0 million

• Improved leverage ratio in the quarter from 3.6x to 3.3x as of third quarter 2022

Commenting on Elopak’s performance in the quarter, CEO Thomas Körmendi said:

“I am pleased to announce yet another quarter of strong revenue growth for Elopak. These results demonstrate how we continue to make tangible progress in delivering on our sustainability-driven growth strategy. Key achievements in Q3 include a very strong performance in Americas, successful implementation of price increases on our products in Europe, first installation at customer site of our new aseptic Pure-Fill machine, and a better than expected start to our new business in India.”

“Equally important is that our organic growth is profitable. The margin recovery in Q3 compared to the previous quarter means that we have been successful in mitigating the continued high raw material costs with price increases on our products. We expect both top-line growth and margin improvements to continue also in the next quarter revenue in Q4 to take us above EUR 1 billion for full year 2022 and adjusted EBITDA in Q4 to be in line with Q3.”

“So far, 2022 has been characterized by continued high raw material prices, general inflationary pressure in all markets, supply chain issues following the pandemic and a more uncertain macro-economic environment. We remain optimistic on the longer-term market fundamentals. Elopak sales are mainly to fresh dairy and aseptic milk and juice customers, which have proven to be resilient market segments.”

“We remain committed to delivering on our sustainability-driven growth strategy. Our newly acquired business in MENA is delivering sales according to plan, while our new business in India is already developing significantly better than expected. Field-testing of our aluminum-free Pure-Pak® eSense carton with a major customer in Europe is looking promising. In the long-term, we expect the use of plastic food & beverage packaging to drop significantly, and Elopak is well-positioned to leverage this plastic-to-carton conversion trend.”

As of September 30, 2022, Year to date revenue increased by 18%, to EUR 756.6 million. Year to date adjusted EBITDA was EUR 83.5 million, reflecting a 11.0% margin.

Every quarter ahead of the earnings announcement, Elopak collects earnings estimates from the equity analysts currently covering Elopak. The consensus estimates and the methodology used are published on the Elopak IR webpages here: https://www.elopak.com/consensus/.

The third quarter 2022 results will be presented on Wednesday, October 26, 2022 at 09:00 CET at Felix Conference Centre, Bryggetorget 3, Oslo. Participants are invited to attend the presentation. The presentation will be held in English by CEO Thomas Körmendi and CFO Bent Kilsund Axelsen.

The full report and presentation are available at www.newsweb.no.

A live webcast will be available following this link: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20221026_5

For the full report and quarterly presentation, please visit www.elopak.com/reports-presentations/

Contact

Investors: Mirza Koristovic, Head of IR, Tel: +47 93 87 05 25

Media: Ingrid Lille Thorsen, Director Corporate Communication, Tel: +47 95 89 24 02

About Elopak

Elopak is a leading global supplier of carton packaging and filling equipment. The company’s iconic Pure-Pak® cartons are made using renewable, recyclable and sustainably sourced materials, providing a natural and convenient alternative to plastic bottles that fits within a low carbon circular economy.

Founded in Norway in 1957, Elopak was listed on the Oslo Stock Exchange in 2021. Today it employs 2,500 people and sells in excess of 14 billion cartons annually across more than 70 countries.

Elopak is a UN Global Compact participant with a platinum EcoVadis rating and has been carbon neutral since 2016. For more information, go to elopak.com or follow us @Pure_Pak on Twitter and @Elopak on LinkedIn.