Quarterly Report • Nov 2, 2023
Quarterly Report
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Third quarter 2023 report
Elopak is a leading global supplier of liquid carton packaging and filling equipment. We use renewable, recyclable and sustainably sourced materials to provide innovative packaging solutions. Our iconic Pure-Pak® cartons are designed with the environment, safety, and convenience front of mind. They offer a natural and convenient alternative to plastic bottles and fit within a low carbon circular economy.
As worldwide makers of carton-based packaging, we are committed to remaining our customers' partner and the consumers' favorite, through relentlessly developing new solutions for an expanding range of content. Applying market-leading technology, skills, and natural material sourcing, we always aim to provide the highest quality products that leave the world unharmed.
Elopak was founded in Norway in 1957. Today, Elopak has its head office in Oslo, employs 2,600 people and sells in excess of 14 billion cartons every year across more than 70 countries. Our customers are private companies in food and retail. Elopak is a UN Global Compact participant member. We have set Science Based Targets to reduce emissions in line with the 1.5-degree trajectory and aim to be Net-Zero by 2050. In 2023, we achieved a gold rating by EcoVadis and were rated top 2% sustainable companies in the world.
As worldwide makers of carton-based packaging, we are committed to remaining our customers' partner and the consumers' favorite, through relentlessly developing new solutions for an expanding range of content.
Applying market-leading technology, skills and natural material sourcing, we always aim to provide the highest quality products that leave the world unharmed.
| Quarter ended September 30 | Year to date ended September 30 | |||||
|---|---|---|---|---|---|---|
| (EUR 1.000.000) | 2023 | 2022 | Change | 2023 | 2022 | Change |
| Revenues | 283,5 | 272,4 | 4% | 844,9 | 756,6 | 12% |
| EBITDA1) | 46.4 | 30.7 | 51% | 126.7 | 75.6 | 68% |
| Adjusted EBITDA1) | 48.3 | 32.0 | 51% | 130.8 | 83.5 | 57% |
| Adjusted EBITDA margin | 17.0% | 11.8% | 45% | 15.5% | 11.0% | 40% |
| Profit from continuing operations | 19.5 | 13.5 | 44% | 54.8 | 23.3 | 135% |
| Adjusted profit for the period1) | 19.5 | 13.7 | 42% | 54.8 | 31.9 | 72% |
| Net debt1) | 347,8 | 346,7 | - | - | - | - |
| Leverage ratio1) | 2.1 | 3.3 | - | - | - | - |
| Adjusted basic and diluted earnings per share (in EUR) | 0.07 | 0.05 | - | 0.20 | 0.12 | - |
1) Definition of Alternative Performance Measures, including specification of adjustments, at the end of this report
Q3
283 272 +4% GROUP 2022 2023
YTD
The strong financial performance in the third quarter of 2023 demonstrates, yet again, Elopak's ability to maneuver through volatile market conditions. In a historical context, Q3 2023 was the best quarter ever, testifying to our success in delivering on our strategy as well as our mid-term targets for revenue growth and profitability.
In Americas, revenue from new customers is the main growth driver and stable operations contribute to improved profitability. We have successfully commissioned new filling machines to both new and existing customers in the quarter. Regarding the recently announced decision to build a new plant in the US, I am happy to share the location which will be in Arkansas. This location will enable us to respond to the customers' request for Elopak solutions. The plant will employ over 100 employees in the first phase. Production will commence in Q4 2024.
In Europe, inflationary pressure has affected dairy consumption somewhat negatively. We are addressing this by expanding our product portfolio, like e-Sense, our Pure-Fill platform, and tethered cap solutions, while simultaneously developing new positions in segments that are actively moving from plastic to carton packaging. Over time this will diversify our business and increase our addressable market significantly. In Q3, we continued to commission new filling machines both within the fresh- and aseptic segments. We see good interest in our aseptic Pure-Fill platform and the first machines are in full production.
In Middle East and North Africa (MENA), inflationary pressure continues to have a certain negative effect on dairy consumption and access to raw milk. Despite these challenges we have managed to successfully retain our volumes and improved our profitability in the region versus the comparable period last year.
Our operations in India are developing at a high pace. With stable operations and the onboarding of new customers, we continue to grow our revenues. India is the fastest growing carton market for milk and juice in the world with increasing consumer focus on sustainability. Elopak is still in the initial stages of ramping up our business in the country, and we are putting in solid efforts to increase our offering and establish Elopak as a leading player on the Indian market.
The increased focus on sustainability both from consumers and regulators are resulting in heightened interest from FMCG companies, many of which are testing non-food products in carton packaging. The potential in this segment is significant, as most household chemical products today are packaged in PET/HDPE plastic packaging. A good example is the UK-based SMOL brand which aspires to offer its customers a more sustainable way to buy household products. SMOL now offers washing-up liquid and fabric conditioner refills in D-PAK™ cartons through an online subscription service. Furthermore, we also see good traction in traditional segments. For example, Freshways Dairy, the second largest independent milk processor in the UK, has launched its carton-packaged milk brand to reduce plastic waste. Freshways cartons also feature tethered caps, which will be mandatory in the EU from July 2024.
We are in the business of sustainable, fiber-based packaging for high quality products around the world. Sustainability is not something we do, it is something we are. Reporting on our performance is important to ensure progress in reaching our sustainability ambitions. In Q3, Elopak was awarded the EcoVadis Gold rating. Our score improved from last year and places us in the top 2% of all rated companies worldwide. This reflects our continued commitment to environmental, social, and ethical excellence in our business conduct. In addition, we were also awarded an A+ score for excellent Environmental Social and Governance (ESG) reporting by sustainability consultancy Position Green. This places Elopak in the top 5% of companies among the 100 largest listed companies in Sweden, Denmark, and Norway.
We continue to pay close attention to how inflationary pressure and increased interest rates impact consumption and consumer behavior. The volatile macro-economic and the present geo-political conditions cause supply chain challenges affecting the industry in general, including Elopak's filling machine and spare parts business. This situation is expected to gradually improve. We expect to achieve full year revenue of above EUR 1,1 billion, well above our mid-term organic growth target of 2-3%. Based on our estimated full year revenue, we expect to deliver full year adjusted EBITDA above 170 million.
I am happy to report yet another quarter of strong and profitable growth. Our improved cash flow and solid balance sheet enable us to respond to the continued interest from multiple segments across the world in sustainable, fiber-based packaging solutions. With a broadened product portfolio, we will be able to actively participate in the current plastic-to-carton packaging trend, thereby contributing to a better future.
Thomas Körmendi Chief Executive Officer - CEO
In the third quarter of 2023, revenues increased 4% compared to the same period last year, or EUR 11.1 million. Adjusting for currency translation effects, the increase is 5%, or EUR 13.2 million.
In EMEA, revenues grew by EUR 13.3 million compared to the same quarter last year. The organic revenue development in EMEA in the quarter was mainly a result of price adjustments in the beginning of the year. In terms of volumes, the development in the quarter was stable. Pure-Pak® Fresh and Aseptic volumes decreased slightly as inflation continues to restrain consumption across segments and geographies. Roll-Fed volumes developed positively mainly from the contribution of India, and filling machine placements improved.
The Americas business continued to perform well, with total revenue growth of 5% compared to the third quarter of 2022. Volumes continued to grow supported by onboarding of new customers, as well as organic growth, with positive development in both fresh dairy and fresh juice.
Year to date 2023, Group revenues increased by 12%, or EUR 88.2 million. Adjusting for currency translation and acquisition effects, revenue growth is 9%, or EUR 70.0 million.
In EMEA, year to date revenues increased EUR 63.1 million compared to last year with an organic revenue growth of EUR 41.1 million, adjusted for currency translation and acquisition effects. The main drivers behind the organic revenue growth were pricing and higher Roll Fed volumes.
In Americas, year to date revenues increased by EUR 22.4 million compared to last year. The organic revenue growth was EUR 26.2 million, mainly a result of volume growth in the Fresh Dairy segment, favorable product mix and price increases from pass-through of raw material cost increases. Currency translation effects had a EUR 3.8 million negative impact, due to weaker USD against Euro."
Group Adjusted EBITDA in the third quarter of 2023 increased by EUR 16.3 million, from EUR 32.0 million in 2022 to EUR 48.3 million in 2023. The adjusted EBITDA margin was 17.0% (11.8%).
In EMEA, adjusted EBITDA increased by EUR 15.7 million compared to the same quarter last year. Adjusted EBITDA-margin in the quarter was 18.1% (11.8%). The margin recovery compared to a weak Q3 2022 was primarily driven by price adjustments in the beginning of the year, partially offset by liquid board cost increase. MENA delivered stable volumes versus the comparable period, although improving on profitability. India delivered volume accretive growth and continued to ramp up the business in line with plan. The EMEA region also had an effect of EUR 2 million related to one-offs in the quarter.
In Americas, adjusted EBITDA increased by EUR 2.9 million compared to the same quarter last year. Adjusted EBITDA-margin was 22.8% (19,7%). The improved profitability is a consequence of volume growth, a more favorable product mix, and solid operational cost control.
On a year-to-date basis, adjusted EBITDA for the
Group increased by 57%, or by EUR 47.4 million to EUR 130.8 million. The increase is mainly a result of the price adjustments in EMEA, onboarding of new customers in Americas, as well as margin accretive growth in new markets. In EMEA, adjusted EBITDA year to date increased by EUR 40.4 million. Adjusted EBITDA margin was 16.4% (11,3%). In Americas adjusted EBITDA increased by EUR 10.7 million. Adjusted EBITDA margin was 22.1% (19.0%).
In the third quarter of 2023, operating profit increased by EUR 16.7 million, from EUR 13.7 million to EUR 30.4 million in 2023. Depreciation, amortization, and impairment losses were EUR 1.1 million lower than the same period last year. This is mainly due to the comparative period including intangible assets related to acquired business in MENA, of which some components have been fully amortized. The remaining operating profit development is primarily a result of the factors explained above in adjusted EBITDA section.
Year to date operating profit increased by EUR 54.9 million to EUR 80.5 million. The operating profit in the comparable period was affected negatively from one-time effects of EUR 8.7 million related to impairment in Ukraine and transactions costs related to acquisition of Naturepak and GLS. The remaining profit development is a result of the factors explained above in the adjusted EBITDA section.
The following table provides a reconciliation from reported operating profit to EBITDA and adjusted EBITDA. For further details and definitions, please refer to the APM section in the back of this report.
In the third quarter of 2023, profit after tax from continuing operations increased to EUR 19.4 million in 2023, up by EUR 6.2 million, from EUR 13.2 million in the same period of 2022.
Share of net income from joint ventures was EUR 1.9 million in the quarter, an increase of EUR 0.4 million from the same period in 2022. The improved performance is mainly driven by higher volume, as well as favorable purchasing effects.
Net Financial expenses increased by EUR 7.7 million compared to last year mainly driven by higher interest rates, unrealized fair value losses on interest rate derivatives and unfavorable currency effects.
Tax expense for the quarter was EUR 7.3 million,
2) Share of net income and impairment on investment from joint ventures included in adjusted figures 3) See reconciliation of net income from joint ventures
| Quarter ended September 30, |
September 30, | Year to date ended |
|---|---|---|
which is an increase of EUR 3.3 million compared to same period last year. The tax expense in the quarter is impacted by currency translation effects. The expected tax at current statutory tax rates for the Group is approximately 24%, depending on the relative mix of profits and losses taxed at varying rates in the jurisdictions in which Elopak operates.
Profit after tax from continued operations year to date increased by EUR 32.9 million, in line with the development of the operating result and the increase in financial and income tax expense.
For the year-to-date 2023, cash flow from opera tions was EUR 107.7 million, reflecting strong earn ings. The Group's cash flow from working capital was EUR -4.5 million mainly due to increased inven tories, down-payment of trade payables, offset by prepayments from customers. The inventory of filling machines increased during the first half of the year; however third quarter placements were satisfactory, and we remain positive on the outlook as the pipeline for deliveries is healthy.
Net cash flow used in investing activities was EUR -13.3 million, reflecting a low level of manufacturing plant projects in Europe and Americas and delayed place ment of filling machines, although spend will pick up in the fourth quarter. Furthermore, Elopak received installments from the sale of its Russian subsidiary amounting to EUR 4.9 million, as well as dividends from Joint Ventures of EUR 0.9 million. In the comparable period the main investment was the acquisition of Naturepak and GLS India.
Net cash flow from financing activities was EUR -91.5 million, reflecting down payment on bank loans, dividend paid to our shareholders, increased interest expenses and normal level of lease payments.
Net interest-bearing bank debt has decreased from EUR 300.8 million at year end 2022 to EUR 252.2 million as of end of September. The main reason for the decrease is down-payment of debt on the back of strong cash from operations year to date. Year to date, lease liability according to IFRS 16 increased EUR 5.0 million to EUR 95.7 million. Consequently, the Leverage Ratio as of end of September 2023 was 2.1x which is a significant improvement from 3.3x reported as of December 31, 2022.
For a specification of the net debt, please refer to the APM section.
Equity increased by EUR 39.5 million, from EUR 268.0 million as of December 31, 2022, to EUR 307.5 million as of September 30, 2023. Total comprehensive income year to date 2023 was EUR 58.6 million.
The Board confirms that the accounts are presented under a going concern assumption.
| Year to date ended 30 Sep | ||
|---|---|---|
| (EUR 1,000) | 2023 | 2022 |
| Net cash flow from operations | 107,729 | 25,437 |
| Net cash flow from investing activities | -13,337 | -112,753 |
| Net cash flow from financing activities | -91,492 | 82,319 |
| Foreign currency translation on cash | -108 | 5,566 |
| Net increase/decrease in cash | 2,793 | 569 |
Condensed consolidated quarterly financial statements
| September 30 | Quarter ended | Year to date ended September 30 |
Full year | |||
|---|---|---|---|---|---|---|
| (EUR 1,000) | NOTE | 2023 | 2022 | 2023 | 2022 | 2022* |
| Revenues | 3 | 283,460 | 272,382 | 844,877 | 756,639 | 1,023,696 |
| Other operating income | 33 | 42 | 35 | 58 | 157 | |
| Total income | 4 | 283,493 | 272,425 | 844,912 | 756,697 | 1,023,853 |
| Cost of materials | -175,449 | -184,043 | -532,580 | -507,562 | -681,474 | |
| Payroll expenses | -46,517 | -44,509 | -140,995 | -131,919 | -176,721 | |
| Depreciation and amortization expenses | 5 | -15,658 | -15,765 | -45,652 | -44,805 | -61,528 |
| Impairment of non-current assets | -400 | -1,267 | -567 | -5,165 | -6,599 | |
| Other operating expenses | -15,094 | -13,187 | -44,592 | -41,577 | -55,757 | |
| Total operating expenses | -253,118 | -258,771 | -764,386 | -731,028 | -982,079 | |
| Operating profit | 4 | 30,375 | 13,654 | 80,526 | 25,669 | 41,774 |
| Financial income and expenses | ||||||
| Share of net income from joint ventures | 1,894 | 1,455 | 4,102 | 3,387 | 4,378 | |
| Financial income | 2,664 | 3,069 | 7,084 | 10,917 | 10,305 | |
| Financial expenses | -7,713 | -2,059 | -21,669 | -8,231 | -13,033 | |
| Foreign exchange gain/loss | -494 | 1,150 | -474 | -1,016 | 2,983 | |
| Profit before tax from continuing operations | 26,726 | 17,269 | 69,569 | 30,726 | 46,407 | |
| Income tax | 6 | -7,348 | -4,067 | -13,671 | -7,726 | -12,188 |
| Profit from continuing operations | 19,378 | 13,202 | 55,898 | 23,000 | 34,220 | |
| Discontinued operations Russia | 7 | - | -10,095 | -1,339 | -23,622 | -23,622 |
| Profit/loss | 19,378 | 3,107 | 54,559 | -622 | 10,598 | |
| Profit attributable to: | ||||||
| Elopak shareholders | 19,479 | 3,404 | 53,475 | -84 | 10,857 | |
| Non-controlling interest | -101 | -298 | 1,084 | -538 | -259 | |
| Basic and diluted earnings per share from continuing operations (in EUR) |
0.07 | 0.05 | 0.20 | 0.09 | 0.13 | |
| Basic and diluted earnings per share from discontinued operations (in EUR) |
0.00 | -0.04 | 0.00 | -0.09 | -0.09 | |
| Basic and diluted earnings per share attributable to Elopak shareholders (in EUR) |
0.07 | 0.01 | 0.20 | 0.00 | 0.04 |
*Audited
| (EUR 1,000) | 2023 | 2022 | 2023 | 2022 | 2022* |
|---|---|---|---|---|---|
| Items that will not be reclassified subsequently to profit or loss | |||||
| Actuarial gains/losses on defined benefit pension plans, net of tax | -29 | 21 | 54 | 47 | 20 |
| Items reclassified subsequently to net income upon derecognition | |||||
| Exchange differences on translation foreign operations Elopak shareholders |
2,802 | 14,623 | 5,278 | 21,589 | 6,406 |
| Exchange differences on translation foreign operations non-controlling interest |
133 | 375 | 36 | 385 | -467 |
| Net value gains/losses on cash flow hedges, net of tax | 1,844 | -4,832 | -1,297 | -7,596 | -6,972 |
| Quarter ended September 30 |
Year to date ended September 30 |
Full year | ||||
|---|---|---|---|---|---|---|
| (EUR 1,000) | 2023 | 2022 | 2023 | 2022 | 2022* | |
| Items that will not be reclassified subsequently to profit or loss | ||||||
| Actuarial gains/losses on defined benefit pension plans, net of tax | -29 | 21 | 54 | 47 | 20 | |
| Items reclassified subsequently to net income upon derecognition | ||||||
| Exchange differences on translation foreign operations Elopak shareholders |
2,802 | 14,623 | 5,278 | 21,589 | 6,406 | |
| Exchange differences on translation foreign operations non-controlling interest |
133 | 375 | 36 | 385 | -467 | |
| Net value gains/losses on cash flow hedges, net of tax | 1,844 | -4,832 | -1,297 | -7,596 | -6,972 | |
| Other comprehensive income, net of tax | 4,749 | 10,187 | 4,071 | 14,426 | -1,013 | |
| Total comprehensive income | 24,127 | 13,294 | 58,630 | 13,803 | 9,584 | |
| Total comprehensive income attributable to: | ||||||
| Elopak shareholders | 24,095 | 13,207 | 57,510 | 13,957 | 10,310 | |
| Non-controlling interest | 32 | 87 | 1,120 | -153 | -726 |
*Audited
Skøyen, November 1, 2023
Sanna Suvanto-Harsaae
Board member
Håvard Grande Urhamar
Board member
Anna Belfrage Board member
Anette Bauer Ellingsen
Board member
Sid Johari Board member
Thomas Körmendi CEO
Dag Mejdell
Chairperson
| (EUR 1,000) | September 30, September 30, December 31, | |||
|---|---|---|---|---|
| ASSETS | NOTE | 2023 | 2022 | 2022* |
| Non-current assets | ||||
| Development cost and other intangible assets | 62,860 | 72,043 | 71,331 | |
| Deferred tax assets | 22,064 | 22,369 | 22,414 | |
| Goodwill | 105,600 | 107,987 | 104,958 | |
| Property, plant and equipment | 194,984 | 206,486 | 201,975 | |
| Right-of-use assets | 5 | 79,716 | 60,027 | 76,784 |
| Investment in joint ventures | 41,065 | 36,732 | 34,673 | |
| Other non-current assets | 17,415 | 19,565 | 19,841 | |
| Total non - current assets | 523,705 | 525,208 | 531,976 | |
| Current assets | ||||
| Inventory | 206,324 | 180,069 | 187,207 | |
| Trade receivables | 107,923 | 105,065 | 102,197 | |
| Other current assets | 118,402 | 103,652 | 109,214 | |
| Cash and cash equivalents | 28,676 | 24,831 | 25,883 | |
| Total current assets | 461,324 | 413,617 | 424,502 | |
| Total assets | 4 | 985,029 | 938,825 | 956,479 |
*Audited
| (EUR 1,000) | September 30, September 30, December 31, | |||
|---|---|---|---|---|
| EQUITY AND LIABILITIES | NOTE | 2023 | 2022 | 2022* |
| EQUITY | ||||
| Share capital | 8 | 50,110 | 50,155 | 50,155 |
| Other paid-in capital | 8 | 70,626 | 70,451 | 69,987 |
| Currency translation reserve | -22,199 | -12,293 | -27,477 | |
| Cash flow hedge reserve | -4,055 | -3,381 | -2,758 | |
| Retained earnings | 203,479 | 158,671 | 169,584 | |
| Attributable to Elopak shareholders | 297,961 | 263,602 | 259,491 | |
| Non-controlling interest | 9,580 | 9,223 | 8,477 | |
| Total equity | 307,541 | 272,825 | 267,967 | |
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Pension liabilities | 2,450 | 2,386 | 2,668 | |
| Deferred taxes | 6 | 16,870 | 18,499 | 17,240 |
| Non-current liabilities to financial institutions | 259,333 | 284,333 | 304,033 | |
| Non-current lease liabilities | 77,756 | 59,988 | 73,536 | |
| Other non-current liabilities | 4,972 | 2,649 | 1,867 | |
| Total non-current liabilities | 361,381 | 367,856 | 399,344 | |
| Current liabilities | ||||
| Current liabilities to financial institutions | 20,794 | 12,713 | 21,682 | |
| Trade payables | 112,634 | 142,284 | 124,038 | |
| Taxes payable | 5,915 | 2,235 | 2,198 | |
| Public duties payable | 27,953 | 24,671 | 22,682 | |
| Current lease liabilities | 17,920 | 13,821 | 17,139 | |
| Other current liabilities | 130,891 | 102,420 | 101,429 | |
| Total current liabilities | 316,107 | 298,145 | 289,167 | |
| Total liabilities | 677,488 | 666,001 | 688,512 | |
| Total equity and liabilities | 985,029 | 938,825 | 956,479 |
*Audited
| Currency | ||||||||
|---|---|---|---|---|---|---|---|---|
| September 30, 2023 | Other | trans | Cash flow | Non-con | ||||
| Share | paid in | lation | hedge | Retained | trolling | Total | ||
| (EUR 1,000) | NOTE | capital | capital | reserve | reserve | earnings | interests | equity |
| Total equity 01.01 | 50,155 | 69,987 | -27,477 | -2,758 | 169,584 | 8,477 | 267,967 | |
| Profit for the period | - | - | - | - | 53,475 | 1,084 | 54,559 | |
| Other comprehensive income for the period net of tax | - | - | 5,278 | -1,297 | 54 | 36 | 4,071 | |
| Total comprehensive income for the period | - | - | 5,278 | -1,297 | 53,529 | 1,120 | 58,630 | |
| Dividend paid | - | - | - | - | -19,634 | -16 | -19,650 | |
| Share based payments | - | 1,060 | - | - | - | - | 1,060 | |
| Treasury shares | -44 | -422 | - | - | - | - | -466 | |
| Total capital transactions in the period | 8 | -44 | 638 | - | - | -19,634 | -16 | -19,056 |
| Total equity 30.09 | 50,110 | 70,625 | -22,199 | -4,055 | 203,479 | 9,580 | 307,541 | |
| Currency | |||||||
|---|---|---|---|---|---|---|---|
| September 30, 2022 | Share | Other paid in |
trans lation |
Cash flow hedge |
Retained | Non-con trolling |
Total |
| (EUR 1,000) NOTE |
capital | capital | reserve | reserve | earnings | interests | equity |
| Total equity 01.01 | 50,155 | 70,236 | -33,883 | 4,215 | 178,330 | - 269,054 | |
| Profit for the period | - | - | - | - | -85 | -538 | -623 |
| Other comprehensive income for the period net of tax | - | - | 21,589 | -7,596 | 47 | 385 | 14,426 |
| Total comprehensive income for the period | - | - | 21,589 | -7,596 | -38 | -153 | 13,803 |
| - | |||||||
| Dividend paid | - | - | - | - | -19,623 | - | -19,623 |
| Settlement of share-based bonus 2021 | - | -330 | - | - | - | - | -330 |
| Provision for share-based bonus 2022 | - | 554 | - | - | - | - | 554 |
| Acquisition of GLS Elopak | - | - | - | - | - | 9,376 | 9,376 |
| Treasury shares | -1 | -8 | - | - | - | - | -9 |
| Total capital transactions in the period | -1 | 215 | - | - | -19,623 | 9,376 | -10,032 |
| Total equity 30.09 | 50,155 | 70,451 | -12,293 | -3,381 | 158,671 | 9,223 | 272,825 |
| Year to date ended September 30 | Full year | |||
|---|---|---|---|---|
| (EUR 1,000) | NOTE | 2023 | 2022 | 2022* |
| Profit before tax from: | ||||
| Continuing operations | 69,569 | 30,726 | 46,407 | |
| Discontinued operations | -1,339 | -22,825 | -22,825 | |
| Profit before tax (including discontinued operations) | 68,230 | 7,901 | 23,583 | |
| Interest to financial institutions | 8,743 | 3,225 | 5,658 | |
| Lease liability interest | 4,956 | 3,250 | 4,575 | |
| Profit before tax and interest paid | 81,929 | 14,376 | 33,815 | |
| Depreciation, amortization and impairment losses | 46,219 | 56,648 | 76,118 | |
| Net gains(-), losses from disposals, impairments and change in | -399 | 500 | 500 | |
| fair value of financial assets and liabilities | -978 | 11,892 | 2,297 | |
| Net unrealised currency gain(-)/loss | -4,102 | -3,387 | -4,378 | |
| Income from joint ventures | -38 | 28 | 137 | |
| Net gain(-)/loss on sale of non-current assets | -10,396 | -8,275 | -13,683 | |
| Income taxes paid | -5,418 | -8,504 | -10,615 | |
| Change in trade receivables | ||||
| Change in other current assets | -13,375 -18,130 |
-9,107 -28,727 |
-16,391 -39,175 |
|
| Change in inventories | -11,100 | 19,193 | 4,893 | |
| Change in trade payables | 43,684 | -18,587 | -8,117 | |
| Change in other current liabilities | -166 | -613 | -307 | |
| Change in net pension liabilities | 107,729 | 25,437 | 25,094 | |
| Net cashflow from operating activities | -19,704 | -29,461 | -43,714 | |
| Purchase of non-current assets | - | -88,133 | -88,262 | |
| Acquisition of subsidiaries and joint ventures 1) | - | 1,200 | 1,232 | |
| Proceeds from sale of non-current assets | 4,883 | - | - | |
| Proceeds from sale of financial assets and businesses | 7 | 923 | - | - |
| Dividend from joint ventures Change in other non-current assets |
560 | 3,641 | 4,735 | |
| Net cash flow from investing activities | -13,337 | -112,753 | -126,009 | |
| Proceeds of loans from financial institutions | 864,295 | 873,387 | 1,178,067 | |
| Repayment of loans from financial institutions | -914,846 | -753,499 | -1,030,217 | |
| Interest to financial institutions | -8,743 | -3,225 | -5,658 | |
| Lease payments | -12,312 | -14,945 | -19,770 | |
| Dividend paid to equity holders of Elopak ASA | -19,634 | -19,623 | -19,623 | |
| Purchase of treasury shares | -252 | 224 | -241 | |
| Net cash flow from financing activities | -91,492 | 82,319 | 102,559 | |
| Effects of exchange rate changes on cash and cash equivalents | -108 | 5,566 | -22 | |
| Net change in cash and cash equivalents | 2,793 | 569 | 1,621 | |
| Cash and cash equivalents at the beginning of the year | 25,883 | 24,262 | 24,262 | |
| Cash and cash equivalents at the end of the period | 28,676 | 24,831 | 25,883 |
*Audited
1) Reclass of EUR 9,223 thousand in 2022 from financing to investing activities to aggregate items related to the acquisition of Elopak GLS
| Revenues specified by geographical area | Quarter ended September 30 Year to date ended September 30 | ||||
|---|---|---|---|---|---|
| (EUR 1,000) | 2023 | 2022 | 2023 | 2022 | |
| USA | 51,781 | 51,508 | 155,705 | 139,395 | |
| Germany | 37,918 | 43,673 | 119,261 | 122,379 | |
| Canada | 21,863 | 17,857 | 58,902 | 48,768 | |
| Netherlands | 14,372 | 13,804 | 44,687 | 41,090 | |
| Norway | 6,988 | 5,571 | 21,317 | 19,161 | |
| Other | 150,538 | 139,969 | 445,005 | 385,847 | |
| Total revenues | 283,460 | 272,382 | 844,877 | 756,639 |
The revenues are specified by location (country) of the customer.
(EUR 1,000)
The Elopak Group consists of Elopak ASA and its subsidiaries. Elopak ASA is a public limited company incorporated in Norway and listed on Oslo Stock Exchange. The Elopak Group is a leading global supplier of carton packaging and filling equipment, which supplies both the fresh and aseptic segments. The consolidated financial information has not been subject to audit or review.
All numbers are presented in EUR 1,000 unless otherwise is clearly stated. The subtotals in some of the tables may not equal the sum of the amounts shown due to rounding. Certain amounts in the comparable periods in the note disclosures have been reclassified to conform to current period presentation. This is particularly relevant for discontinued operations, which have been removed from the notes, which include continuing operations only. See note 7 Discontinued operations for more details.
The Board of Directors approved the condensed consolidated interim financial statements for the period ended September 30, 2023 on November 1, 2023.
| Quarter ended September 30, 2023 | EMEA | Americas | Other and eliminations |
Total |
|---|---|---|---|---|
| Cartons and closures | 189,600 | 67,765 | -1,371 | 255,993 |
| Equipment | 16,287 | 3,967 | -5,918 | 14,336 |
| Service | 13,519 | - | -365 | 13,154 |
| Other | 1,814 | 350 | -2,187 | -24 |
| Total revenues | 221,221 | 72,081 | -9,842 | 283,460 |
| Quarter ended September 30, 2022 | EMEA | Americas | Other and eliminations |
Total |
| Cartons and closures | 177,142 | 66,199 | -1,231 | 242,110 |
| Equipment | 11,183 | 2,135 | -1,013 | 12,305 |
| Service | 11,362 | - | -157 | 11,205 |
| Other | 8,174 | 499 | -1,912 | 6,761 |
| Total revenues | 207,861 | 68,833 | -4,312 | 272,382 |
| Other and |
| uarter ended September 30, 2022 | |
|---|---|
| artons and closures |
| Quarter ended September 30, 2023 | EMEA | Americas | Other and eliminations |
Total |
|---|---|---|---|---|
| Cartons and closures | 189,600 | 67,765 | -1,371 | 255,993 |
| Equipment | 16,287 | 3,967 | -5,918 | 14,336 |
| Service | 13,519 | - | -365 | 13,154 |
| Other | 1,814 | 350 | -2,187 | -24 |
| Total revenues | 221,221 | 72,081 | -9,842 | 283,460 |
| Quarter ended September 30, 2022 | EMEA | Americas | Other and eliminations |
Total |
| Cartons and closures | 177,142 | 66,199 | -1,231 | 242,110 |
| Equipment | 11,183 | 2,135 | -1,013 | 12,305 |
| Service | 11,362 | - | -157 | 11,205 |
| Other | 8,174 | 499 | -1,912 | 6,761 |
| Total revenues | 207,861 | 68,833 | -4,312 | 272,382 |
| Other and |
The condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS), IAS 34 "Interim Financial Reporting". The condensed interim financial statements do not include all information and disclosures required in the annual financial statement and should be read in conjunction with the Group's Annual Report for 2022, which has been prepared according to IFRS as adopted by EU. The accounting policies applied in the preparation of the consolidated interim financial statements are consistent with those applied in the preparation of the annual IFRS financial statements for the year ended December 31, 2022.
The preparation of interim financial statements requires the Group to make certain estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income, and expenses. Estimates and judgements are continually evaluated by the company based on historical experience and other factors, including expectations of future events that are deemed to be reasonable under the circumstances. Actual results may differ from these estimates. The most significant judgements used in preparing these interim financial statements and the key areas of estimation uncertainty are the same as those applied in the consolidated annual report for 2022.
The annual report for 2022 provides a description of the uncertainties and risks for the business.
The Group's revenues consist of revenue from contracts with customers (99%) and rental income from lease of filling equipment (1%). Revenues are primarily derived from the sale of cartons and closures, sales and rental income related to filling equipment and service. The tables include continuing operations only.
| Year to date ended September 30, 2023 | EMEA | Americas | eliminations | Total |
|---|---|---|---|---|
| Cartons and closures | 577,863 | 205,268 | -3,138 | 779,993 |
| Equipment | 27,048 | 3,993 | -5,947 | 25,094 |
| Service | 38,519 | - | -808 | 37,711 |
| Other | 7,556 | 967 | -6,442 | 2,080 |
| Total revenues | 650,986 | 210,228 | -16,335 | 844,877 |
| Other and | ||||
|---|---|---|---|---|
| Year to date ended September 30, 2022 | EMEA | Americas | eliminations | Total |
| Cartons and closures | 500,680 | 184,248 | -2,827 | 682,101 |
| Equipment | 30,235 | 2,153 | -9,823 | 22,564 |
| Service | 34,290 | - | -431 | 33,860 |
| Other | 22,701 | 1,427 | -6,014 | 18,114 |
| Total revenues | 587,906 | 187,828 | -19,094 | 756,639 |
Information reported to the Group's chief operating decision makers, the Group Leadership Team, for the purpose of resource allocation and assessment of segment performance is focused on two key geographical regions – EMEA and Americas. Key figures representing the financial performance of these segments are presented in the following note. GLS Elopak is included in EMEA. The tables include continuing operations only.
| Other and | ||||
|---|---|---|---|---|
| Quarter ended September 30, 2023 | EMEA | Americas | eliminations | Total |
| Revenue from contracts with customers | 211,527 | 71,744 | 189 | 283,460 |
| Other income | 33 | - | - | 33 |
| Total revenue and other operating income from external customers |
211,561 | 71,744 | 189 | 283,493 |
| Revenue from other group segments | 9,693 | 337 | -10,031 | - |
| Total revenue and other operating income | 221,254 | 72,081 | -9,842 | 283,493 |
| Operating expenses 1) | -181,100 | -57,530 | 1,570 | -237,060 |
| Depreciation and amortization | -13,223 | -1,831 | -604 | -15,658 |
| Impairment | -400 | - | - | -400 |
| Operating profit | 26,531 | 12,721 | -8,877 | 30,375 |
| EBITDA 2) | 40,154 | 14,552 | -8,272 | 46,433 |
| Adjusted EBITDA 2) | 40,152 | 16,447 | -8,272 | 48,327 |
| Total assets | 1,002,129 | 189,911 | -207,010 | 985,029 |
| Purchase of non-current assets during the quarter | 4,347 | 442 | -255 | 4,535 |
| Other and | ||||
|---|---|---|---|---|
| Year to date ended September 30, 2023 | EMEA | Americas | eliminations | Total |
| Revenue from contracts with customers | 634,973 | 209,275 | 629 | 844,877 |
| Other income | 35 | - | - | 35 |
| Total revenue and other operating income from external customers |
635,008 | 209,275 | 629 | 844,912 |
| Revenue from other group segments | 16,012 | 953 | -16,964 | - |
| Total revenue and other operating income | 651,019 | 210,228 | -16,335 | 844,912 |
| Operating expenses 1) | -544,120 | -167,893 | -6,153 | -718,167 |
| Depreciation and amortization | -38,488 | -5,332 | -1,832 | -45,652 |
| Impairment | -567 | - | - | -567 |
| Operating profit | 67,843 | 37,003 | -24,320 | 80,526 |
| EBITDA 2) | 106,899 | 42,335 | -22,489 | 126,745 |
| Adjusted EBITDA 2) | 106,889 | 46,447 | -22,489 | 130,847 |
| Total assets | 1,002,129 | 189,911 | -207,010 | 985,029 |
| Purchase of non-current assets during the year | 19,282 | 411 | 11 | 19,704 |
| Other and | ||||
|---|---|---|---|---|
| Quarter ended September 30, 2022 | EMEA | Americas | eliminations | Total |
| Revenue from contracts with customers | 203,863 | 68,355 | 164 | 272,382 |
| Other income | 42 | - | - | 42 |
| Total revenue and other operating income from external customers |
203,905 | 68,355 | 164 | 272,425 |
| Revenue from other group segments | 3,999 | 478 | -4,477 | - |
| Total revenue and other operating income | 207,904 | 68,833 | -4,312 | 272,425 |
| Operating expenses 1) | -183,115 | -56,773 | -1,851 | -241,739 |
| Depreciation and amortization | -13,140 | -1,940 | -686 | -15,765 |
| Impairment | -1,267 | - | - | -1,267 |
| Operating profit | 10,383 | 10,120 | -6,850 | 13,654 |
| EBITDA 2) | 24,789 | 12,060 | -6,163 | 30,686 |
| Adjusted EBITDA 2) | 24,466 | 13,588 | -6,016 | 32,038 |
| Total assets | 967,652 | 175,468 | -204,294 | 938,825 |
| Purchase of non-current assets during the quarter | 4,658 | 2,305 | 714 | 7,677 |
The Group leases several assets including buildings, plants, cars and filling machines.
| (EUR 1,000) | ||||
|---|---|---|---|---|
| Property and | Office and | |||
| September 30, 2023 | buildings | Machinery | transport | Total |
| Carrying amount 1.1 | 52,148 | 13,968 | 10,668 | 76,784 |
| Additions and adjustments | 3,722 | 7,257 | 2,699 | 13,678 |
| Disposals | - | -7 | -88 | -95 |
| Current year depreciation charge | -3,370 | -4,396 | -2,884 | -10,651 |
| Carrying amount at 30.09 | 52,499 | 16,822 | 10,395 | 79,716 |
| Property and | Office and | |||
| September 30, 2022 | buildings | Machinery | transport | Total |
| Carrying amount 1.1 | 38,652 | 12,986 | 11,314 | 62,952 |
| Additions and adjustments | 13 | 6,922 | 3,036 | 9,971 |
| Disposals | -2,177 | - | -295 | -2,472 |
| Current year depreciation charge | -3,487 | -4,020 | -2,914 | -10,421 |
| Impairment losses | - | -4 | - | -4 |
| Carrying amount at 30.09 | 33,001 | 15,885 | 11,141 | 60,027 |
| Property and | Office and | |||
| December 31, 2022 | buildings | Machinery | transport | Total |
| Carrying amount 1.1 | 38,652 | 12,986 | 11,314 | 62,952 |
| Additions and adjustments | 22,258 | 6,307 | 3,278 | 31,842 |
| Disposals | -3,956 | -28 | -100 | -4,084 |
| Current year depreciation charge | -4,806 | -5,288 | -3,823 | -13,918 |
| Impairment losses | - | -8 | - | -8 |
| Carrying amount at 31.12 | 52,148 | 13,968 | 10,668 | 76,784 |
| Property and | Office and | |||
|---|---|---|---|---|
| September 30, 2023 | buildings | Machinery | transport | Total |
| Carrying amount 1.1 | 52,148 | 13,968 | 10,668 | 76,784 |
| Additions and adjustments | 3,722 | 7,257 | 2,699 | 13,678 |
| Disposals | - | -7 | -88 | -95 |
| Current year depreciation charge | -3,370 | -4,396 | -2,884 | -10,651 |
| Carrying amount at 30.09 | 52,499 | 16,822 | 10,395 | 79,716 |
| Property and | Office and | |||
| September 30, 2022 | buildings | Machinery | transport | Total |
| Carrying amount 1.1 | 38,652 | 12,986 | 11,314 | 62,952 |
| Additions and adjustments | 13 | 6,922 | 3,036 | 9,971 |
| Disposals | -2,177 | - | -295 | -2,472 |
| Current year depreciation charge | -3,487 | -4,020 | -2,914 | -10,421 |
| Impairment losses | - | -4 | - | -4 |
| Carrying amount at 30.09 | 33,001 | 15,885 | 11,141 | 60,027 |
| Property and | Office and | |||
| December 31, 2022 | buildings | Machinery | transport | Total |
| Carrying amount 1.1 | 38,652 | 12,986 | 11,314 | 62,952 |
| Additions and adjustments | 22,258 | 6,307 | 3,278 | 31,842 |
| Disposals | -3,956 | -28 | -100 | -4,084 |
| Current year depreciation charge | -4,806 | -5,288 | -3,823 | -13,918 |
| Impairment losses | - | -8 | - | -8 |
| Carrying amount at 31.12 | 52,148 | 13,968 | 10,668 | 76,784 |
| Property and | Office and | |||
|---|---|---|---|---|
| September 30, 2023 | buildings | Machinery | transport | Total |
| Carrying amount 1.1 | 52,148 | 13,968 | 10,668 | 76,784 |
| Additions and adjustments | 3,722 | 7,257 | 2,699 | 13,678 |
| Disposals | - | -7 | -88 | -95 |
| Current year depreciation charge | -3,370 | -4,396 | -2,884 | -10,651 |
| Carrying amount at 30.09 | 52,499 | 16,822 | 10,395 | 79,716 |
| Property and | Office and | |||
| September 30, 2022 | buildings | Machinery | transport | Total |
| Carrying amount 1.1 | 38,652 | 12,986 | 11,314 | 62,952 |
| Additions and adjustments | 13 | 6,922 | 3,036 | 9,971 |
| Disposals | -2,177 | - | -295 | -2,472 |
| Current year depreciation charge | -3,487 | -4,020 | -2,914 | -10,421 |
| Impairment losses | - | -4 | - | -4 |
| Carrying amount at 30.09 | 33,001 | 15,885 | 11,141 | 60,027 |
| Property and | Office and | |||
| December 31, 2022 | buildings | Machinery | transport | Total |
| Carrying amount 1.1 | 38,652 | 12,986 | 11,314 | 62,952 |
| Additions and adjustments | 22,258 | 6,307 | 3,278 | 31,842 |
| Disposals | -3,956 | -28 | -100 | -4,084 |
| Current year depreciation charge | -4,806 | -5,288 | -3,823 | -13,918 |
| Impairment losses | - | -8 | - | -8 |
| Carrying amount at 31.12 | 52,148 | 13,968 | 10,668 | 76,784 |
| Other and | ||||
|---|---|---|---|---|
| Year to date ended September 30, 2022 | EMEA | Americas | eliminations | Total |
| Revenue from contracts with customers | 569,889 | 186,426 | 324 | 756,639 |
| Other income | 58 | - | - | 58 |
| Total revenue and other operating income from external customers |
569,948 | 186,426 | 324 | 756,697 |
| Revenue from other group segments | 18,017 | 1,402 | -19,419 | - |
| Total revenue and other operating income | 587,964 | 187,828 | -19,094 | 756,697 |
| Operating expenses 1) | -522,953 | -155,532 | -2,573 | -681,058 |
| Depreciation and amortization | -37,442 | -5,313 | -2,050 | -44,805 |
| Impairment | -5,165 | - | - | -5,165 |
| Operating profit | 22,403 | 26,983 | -23,718 | 25,669 |
| EBITDA 2) | 65,010 | 32,296 | -21,668 | 75,639 |
| Adjusted EBITDA 2) | 66,516 | 35,772 | -18,817 | 83,471 |
| Total assets | 967,652 | 175,468 | -204,294 | 938,825 |
| Purchase of non-current assets during the year | 32,245 | 4,838 | -7,621 | 29,461 |
1) Operating expenses include cost of materials, payroll expenses, and other operating expenses.
2) See the APM disclosure for the reconciliation of EBITDA and adjusted EBITDA.
The Group has one significant purchase option for the purchase of the High Bay warehouse lease agreement. This purchase option can be exercised in 2042 and the purchase price is market value at exercise date. An exercise of the purchase option is not considered to be reasonably certain, hence it is not recognized.
In 2023, expenses related to short-term leases were EUR 66 thousand, expenses related to low value assets were EUR 445 thousand and expenses related to variable payments not included in the measurement of lease liabilities were EUR 135 thousand.
The Group has signed contracts for Tethered Cap lines with a lease term of 5 years and a nominal value of EUR 29,382 thousand, which will commence at different stages during 2023 and Q1 2024. The Group has entered into an agreement for the development of the US Plant, which represents a total commitment of EUR 2,105 thousand.
In 2017, the Norwegian tax office classified dividends from Elopak Systems AG as taxable income for Elopak ASA, and at the time the full tax amount of approximately 7 MEUR was recognized as a tax cost. Elopak ASA does not consider the distribution as taxable income. On June 22, 2023 the Oslo district court ruled in favor of the tax office, Elopak ASA has appealed the ruling.
On July 15, 2022 Elopak ASA and Packaging Management and Investing LLC, a company beneficially owned by management of JSC Elopak, reached an agreement for the sale and purchase of all of Elopak's shares in JSC Elopak. This represented a full divestment by Elopak from its existing Russian operations.
Transfer of the shares in JSC Elopak was carried out in February 2023 after officially approval from the Russian Government. However, the terms of the SPA implied that Elopak lost control of JSC Elopak on the date it was signed, hence the entity was deconsolidated from Q3 2022.
As Elopak's operations in Russia represented a single major geographical area of operations and previously have been presented as a separate reporting segment, this agreement led to Elopak presenting the operations in Russia as discontinued operations in the consolidated statement of comprehensive income and in the statement of cash flows. Comparative figures have been reclassified, and all note disclosures presenting details from the statement of comprehensive income have been restated to conform to current period presentation, including only continuing operations.
The purchase price is payable in five annual instalments. The receivable was measured and recognized at the share's fair value on the transaction date. After initial recognition the receivable is being measured at amortized cost. Elopak ASA received the first instalment in June 2023 and part of the second installment in July 2023.
One of Elopak's former customers in Russia has won a legal claim against JSC Elopak which then has been put forward to Elopak ASA as a reimbursable claim. The legal claim has been appealed. The claim represents a contingent liability which has been recognized in the statement of comprehensive income as part of discontinued operations.
| Quarter ended | Year to date ended | ||||
|---|---|---|---|---|---|
| September 30 | September 30 | Full year | |||
| (EUR 1,000) | 2023 | 2022 | 2023 | 2022 | 2022 |
| Revenues | - | - | - | 18,184 | 18,184 |
| Total income | - | - | - | 18,184 | 18,184 |
| Cost of materials | - | - | - | -15,197 | -15,197 |
| Payroll expenses | - | - | - | -2,311 | -2,311 |
| Depreciation, amortization and impairment | - | - | - | - 9,921 | -9,921 |
| Other operating expenses | - | -1,339 | -1,034 | -1,034 | |
| Total operating expenses | - | - | -1,339 | - 28,463 | -28,463 |
| Operating profit | - | - | -1,339 | -10,278 | -10,278 |
| Net financial income | - | - | - | -2,452 | -2,452 |
| Profit before tax | - | - | -1,339 | -12,730 | -12,730 |
| Income tax | - | - | - | -797 | -797 |
| Results from discontinued operations, net of tax | - | - | -1,339 | -13,527 | -13,527 |
| Loss on sale of discontinued operations | - | -10,095 | - | -10,095 | -10,095 |
| Income tax on gain on sale | |||||
| Profit/loss from discontinued operations | - | 10,095 | -1,339 | -23,622 | -23,622 |
| Net cash flow from operating activities | - | - | - | 1,834 | 1,834 |
| Net cash flow from investing activities | - | - | - | - | - |
| Net cash flow from financing activities | - | - | - | -186 | -186 |
| Foreign currency translations | - | - | - | 635 | 635 |
| Net change in cash and cash equivalents | - | - | - | 2,283 | 2,283 |
As of September 30, 2023, the share capital is NOK 376,906,620 (EUR 50,155,321) and the total number of ordinary shares issued for Elopak ASA is 269,219,014, each with a face value of NOK 1.4 (EUR 0.19). All shares have equal voting rights and all authorized shares are issued and fully paid.
Elopak ASA's ordinary general meeting on May 11, 2023 approved a buy-back program for the repurchase of up to 300,000 shares for a maximum aggregate amount of NOK 9,000,000. The buy-back will be conducted during the period from September 11, 2023 to and including October 4, 2023. The shares acquired under the share buy-back program will be used to meet the Company's obligations towards employees who participate in the Company's long-term incentive plan. As of September 30, 2023, the balance of treasury shares is 239,601. The treasury share capital is EUR 44 thousand and the treasury share premium is EUR 422 thousand.
The Board approved a dividend of NOK 0.86 per share for the financial year 2022 on May 12, 2023. The dividend payment was EUR 19,634 thousand based on 269 219 014 outstanding shares, of which EUR 11,747 thousand was paid to Ferd AS.
| 2022 | Ordinary shares issued |
Treasury shares |
Ordinary shares outstanding |
|---|---|---|---|
| Shares at 1.1 | 269,219,014 | - | 269,219,014 |
| Treasury shares purchased | - | -170,000 | -170,000 |
| Treasury shares re-issued | - | 164,481 | 164,481 |
| Shares at 31.12 | 269,219,014 | -5,519 | 269,213,495 |
Number of shares
| Ordinary shares | Treasury | Ordinary shares | |
|---|---|---|---|
| 2023 | issued | shares | outstanding |
| Shares at 1.1 | 269,219,014 | -5,519 | 269,213,495 |
| Treasury shares purchased | - | -234,082 | -234,082 |
| Treasury shares re-issued | - | - | - |
| Shares at 30.9 | 269,219,014 | -239,601 | 268,979,413 |
| Quarter ended September 30 Year to date ended September 30 | |||||
|---|---|---|---|---|---|
| (EUR 1,000, except number of shares) | 2023 | 2022 | 2023 | 2022 | 2022 |
| Profit attributable to Elopak shareholders | 19,479 | 3,404 | 53,475 | -84 | 10,857 |
| Issued ordinary shares at beginning of period, adjusted for share split in the period |
269,213,495 | 269,219,014 | 269,213,495 | 269,219,014 | 269,219,014 |
| Effect of shares issued | -25,677 | -5,519 | -8,653 | -2,183 | -3,024 |
| Weighted-average number of ordinary shares in the period |
269,187,818 | 269,213,495 | 269,204,842 | 269,216,831 | 269,215,990 |
| Basic and diluted earnings per share attributable to Elopak shareholders (in EUR) |
0.07 | 0.01 | 0.20 | 0.00 | 0.04 |
| September 30, 2023 | September 30, 2022 | December 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| (EUR 1,000) | Assets Liabilities | Total | Assets Liabilities | Total | Assets Liabilities | Total | |||
| Currency derivatives | 465 | 7,724 | -7,259 | 245 | 3,850 | -3,605 | 747 | 1,280 | -534 |
| Commodity derivatives | 23 | 296 | -274 | 1,297 | 2,811 | -1,514 | - | 3,318 | -3,318 |
| Interest derivatives | 6,540 | - | 6,540 | 6,855 | 8 | 6,847 | 7,063 | - | 7,063 |
| Total | 7,028 | 8,020 | -992 | 8,397 | 6,669 | 1,728 | 7,810 | 4,598 | 3,212 |
The full fair value of a derivative is classified as "Other non-current assets or "Other non-current liabilities" if the remaining maturity of the derivative is more than 12 months and, as "Other current assets" or "Other current liabilities", if the maturity of the derivative is less than 12 months. The fair value estimation of derivative financial instruments has been arrived at by applying a level 2 valuation methodology which uses inputs other than unadjusted quoted prices for identical assets and liabilities, with changes in fair value are therefore recognized in the income statement. No other material financial assets or liabilities are measured at fair value through profit or loss.
Where eligible, derivatives used for hedging are designated in cash flow hedge accounting relationships.
The Group prepares and reports its consolidated financial statements in accordance with International Financial Reporting Standards as issued by the IASB and as endorsed by the EU (IFRS). In addition, the Group presents several Alternative Performance Measures (APMs).
In accordance with European Securities and Market Authority (ESMA) guidelines dated May 10, 2015, an APM is understood as a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework (IFRS). It should be noted that these measures do not have any standardized meaning prescribed by IFRS and therefore are not necessarily comparable to the calculation of similar measures used by other companies. The APMs are regularly reviewed by the Group's management. The APMs are reported in addition to but are not substitutes for the Group's consolidated financial statements, prepared in accordance with IFRS.
The APMs provide supplementary information to measure the Group's performance and to enhance comparability between financial periods. The APMs also provide measures commonly reported and widely used by investors, lenders, and other stakeholders as an indicator of the Group's performance. These APMs are among other, used in planning for and forecasting future periods, including assessing our ability to incur and service debt including covenant compliance. APMs are defined consistently over time and are based on the Group's consolidated financial statements (IFRS).
Organic revenue is a measure of revenue adjusted for currency effects and effects of acquisition and disposal of operations. The Group presents this APM because management considers it to provide useful supplemental information for understanding the Group's revenue development over time for comparability purposes.
EBITDA is a measure of earnings before interest, taxes, depreciation, amortization, and impairments. The Group presents this APM because management considers it to provide useful supplemental information for understanding the overall picture of profit generation in the Group's operating activities and for comparing its operating performance with that of other companies.
Adjusted EBITDA is a measure of EBITDA adjusted for certain items affecting comparability (the Adjustment items) and further including the Group's share of net income from joint ventures (continued operations) presented as part of financial income and expenses. The Group presents this APM because management considers it to be an important supplemental measure for understanding the underlying profit generation in the Group's operating activities and comparing its operating performance with that of other companies.
Adjusted profit attributable to Elopak shareholders represents the Group's profit attributable to Elopak shareholders adjusted for certain items affecting comparability, taking into account the Adjustment items, related estimated calculatory tax effects based on a 24% statutory tax rate and excluding historical share of net income from joint ventures that have been discontinued. The Group presents this APM because management considers
Alternative Performance Measures (APMs) it to provide useful supplemental information for understanding the Group's profit attributable to Elopak shareholders and for comparability purposes with other companies.
Adjusted EPS represents adjusted profit attributable to Elopak shareholders divided by weighted average number of ordinary shares – basic and diluted. Elopak presents adjusted basic and diluted earnings per share because management considers it to be an important supplemental measure for understanding the Group's underlying profit for the year (period) on a per share basis and comparing its profit for the year (period) on a per share basis with that of other companies in the industry.
Net debt is a measure of borrowings (including liabilities to financial institutions before amortization costs and including lease liabilities) less cash and cash equivalents for the period. The Group presents this APM because management considers it as a useful indicator of the Group's indebtedness, financial flexibility and capital structure because it indicates the level of borrowings after taking into account cash and cash equivalents within the Group's business that could be utilized to pay down outstanding borrowings. Net debt is also used for monitoring the Group's financial covenants compliance by management.
Leverage ratio is a measure of net debt divided by adjusted EBITDA. The Group presents this APM because management considers it as a useful indicator of the Group's ability to meet its financial obligations. Net debt/ adjusted EBITDA is also used for monitoring the Group's financial covenants compliance by management.
| Quarter ended September 30, | Year to date ended September 30, | |||
|---|---|---|---|---|
| (EUR 1,000) | 2023 | 2022 | 2023 | 2022 |
| Impairment non-current assets Ukraine | - | -126 | - | 3,776 |
| Impairment current assets Ukraine | - | - | - | 1,494 |
| Onerous contracts | - | -250 | - | 100 |
| Transaction costs | - | 147 | - | 2,850 |
| Total adjusted items | - | -229 | - | 8,221 |
| Calculatory tax effect 1) | - | 404 | - | 430 |
| Total adjusted items net of tax | - | 175 | - | 8,651 |
| Quarter ended September 30, | Year to date ended September 30, | ||||
|---|---|---|---|---|---|
| (EUR 1,000) | 2023 | 2022 | 2023 | 2022 | |
| Total revenue and other operating income | 283,493 | 272,425 | 844,912 | 756,697 | |
| Currency effect | 2,112 | 10,975 | 5,377 | 20,787 | |
| Acquisition and disposal effect | - | - | -23,556 | -350 | |
| Organic revenue | 285,606 | 283,400 | 826,733 | 777,134 |
1)Calculatory tax effect on adjusted items at 24%
| Quarter ended September 30, | Year to date ended September 30, | |||
|---|---|---|---|---|
| (EUR 1,000) | 2023 | 2022 | 2023 | 2022 |
| Profit from continuing operations | 19,479 | 13,499 | 54,814 | 23,298 |
| Total adjusted items net of tax | - | 175 | - | 8,651 |
| Adjusted profit | 19,479 | 13,674 | 54,814 | 31,948 |
| Year to date ended September 30, | ||||
|---|---|---|---|---|
| (EUR 1,000) | 2023 | 2022 | ||
| Bank debt 1) | 260,000 | 285,000 | ||
| Overdraft facilities | 20,794 | 12,713 | ||
| Cash and equivalents | -28,676 | -24,831 | ||
| Lease liabilities | 95,676 | 73,810 | ||
| Net debt | 347,794 | 346,692 | ||
| 1) Bank debt is excluding amortized borrowing costs of EUR 667 thousand as of September 30, 2023 and EUR 667 thousand as of September 30, 2022 |
Leverage ratio 2) 2.1 3.3
2) Leverage ratio is calculated based on last twelve months adjusted EBITDA of EUR 167,539 thousand as of September 30, 2023 and EUR 104,287 thousand as of September 30, 2022.
| Quarter ended September 30, | Year to date ended September 30, | |||
|---|---|---|---|---|
| (EUR 1,000 except number of shares) | 2023 | 2022 | 2023 | 2022 |
| Weighted-average number of ordinary shares | 269,187,818 | 269,213,495 | 269,204,842 | 269,216,831 |
| Profit from continuing operations | 19,479 | 13,499 | 54,814 | 23,298 |
| Adjusted profit | 19,479 | 13,674 | 54,814 | 31,948 |
| Basic and diluted earnings per share (in EUR) | 0.07 | 0.05 | 0.20 | 0.09 |
| Adjusted basic and diluted earnings per share (in EUR) | 0.07 | 0.05 | 0.20 | 0.12 |
| Quarter ended September 30, | Year to date ended September 30, | |||
|---|---|---|---|---|
| (EUR 1,000) | 2023 | 2022 | 2023 | 2022 |
| Lala Elopak S.A. de C.V. | 1,235 | 1,003 | 2,784 | 2,162 |
| Impresora Del Yaque | 661 | 525 | 1,329 | 1,314 |
| Elopak Nampak Africa Ltd | -1 | -73 | -10 | -88 |
| Total share of net income joint ventures | 1,894 | 1,455 | 4,102 | 3,387 |
| Share of net income joint ventures continued operations | 1,894 | 1,455 | 4,102 | 3,387 |
| Share of net income continued operations | 1,894 | 1,455 | 4,102 | 3,387 |
We confirm to the best of our knowledge that the condensed set of financial statements for the period January 1 to September 30, 2023, has been prepared in accordance with IAS 34 – Interim Financial Reporting, and gives a true and fair view of the Elopak Group's assets, liabilities, financial position and result for the period. We also confirm to the best of our knowledge that the financial review includes a fair review of significant events that have occurred during the financial period and their impact on the financial statements, any significant related parties transactions and a description of the principal risks and uncertainties for the financial period.
Elopak Group Consolidated Financial Statements
Skøyen, November 1, 2023 Board of Directors in Elopak ASA
Sanna Suvanto-Harsaae
Board member
Trond Solberg Board member
Håvard Grande Urhamar
Board member
Anna Belfrage Board member
Anette Bauer Ellingsen Board member
Sid Johari Board member
Thomas Körmendi CEO
| Quarter ended September 30, | Year to date ended September 30, | |||
|---|---|---|---|---|
| (EUR 1,000) | 2023 | 2022 | 2023 | 2022 |
| Operating profit | 30,375 | 13,654 | 80,526 | 25,669 |
| Depreciation, amortization and impairment adjusted |
16,058 | 17,158 | 46,219 | 46,193 |
| Impairment fixed and long term assets Ukraine | - | -126 | - | 3,777 |
| EBITDA | 46,433 | 30,686 | 126,745 | 75,639 |
| Total adjusted items with EBITDA impact | - | -103 | - | 4,444 |
| Share of net income from joint ventures (continued operations) 2) 3) |
1,894 | 1,455 | 4,102 | 3,387 |
| Adjusted EBITDA | 48,327 | 32,038 | 130,847 | 83,471 |
2) Share of net income and impairment on investment from joint ventures included in adjusted figures
3) See reconciliation of net income from joint ventures
Mirza Koristovic Head of Investor Relations +47 938 70 525
Bent Axelsen Chief Financial Officer +47 977 56 578
The interim report contains certain forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "plans", "targets", "aims", "believes", "expects", "anticipates", "intends", "estimates", "will", "may", "continues", "should" and similar expressions. Any statement, estimate or projections included in the Information (or upon which any of the conclusions contained herein are based) with respect to anticipated future performance (including, without limitation, any statement, estimate or projection with respect to the condition (financial or otherwise), prospects, business strategy, plans or objectives of the Group and/or any of its affiliates) reflect, at the time made, the Company's beliefs, intentions and current targets/aims and may prove not to be correct. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. No representation or warranty is given as to the completeness or accuracy of any forwardlooking statement contained in the Information or the accuracy of any of the underlying assumptions.
February 15, 2024 Quarterly Report – Q4 April 10, 2024 Annual Report May 8, 2024 Quarterly Report – Q1 May 14, 2024 Annual General Meeting August 15, 2024 Half-yearly Report October 30, 2024 Quarterly Report - Q3
Elopak reserves the right to revise the dates
36 Elopak Quarterly Financial Report — Q3 2022 37
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