Constantia Flexibles furthers global growth strategy

Sales in the first six months of 2016 topped one billion EUR (1.1 billion USD), up 8.7 percent year-on-year. The acquisitions of Afripack and Pemara, as reported here, contributed 64.3 million EUR (72.6 million USD) to the sales figure. Organic sales growth was 2.9 percent year-on-year. This growth was achieved in all markets and was generated by volume increases as well as improvements in the price/product mix. The Americas and emerging markets regions posted the strongest growth, primarily from the 2013 acquisitions of Globalpack in Mexico, Spear in the USA and Parikh in India.

Constantia Flexibles reported strong results for the full year in 2015, as reported here, and based on its performance so far in 2016, is optimistic for the rest of this year also. Constantia Flexibles CEO Alexander Baumgartner said: ‘We will surpass sales of two billion EUR (2.3 billion USD) for the first time in the company’s history.

‘We will push ahead with our global growth strategy, and in so doing, focus our broad range of packaging solutions even more on the most attractive customer markets and regions.’

The Labels division saw sales increase by 11.4 percent in the first half of 2016 to 304.5 million EUR (344 million USD), with its share of the total sales figure at 29.5 percent. Constantia Flexibles said market growth in the first half of 2016 was characterized by increasing demand for higher value labels, primarily self-adhesive labels, particularly in the global beer market. An additional sales driver was increased global demand for plastic labels, while growth was also supported by the continuous expansion of existing business relationships and gaining new customers in Asia.

Sales in the Food division increased in the first half of the year by 8.1 percent, giving it a 56.6 percent share of total sales, and the Pharma division’s sales increased by 2.1 percent in the period under review. The Pharma division will consolidate the acquisition of Oai Hung in Vietnam, as reported here, for the first time in the second half of the year.

Constantia Flexibles warned that global general economic conditions continue to be a major challenge, with its management observing geopolitical developments very closely, in particular in Russia and Turkey. At the same time, it is carefully watching the impacts from the referendum in the UK. Constantia Flexibles operates plants in all three countries that produce locally, but also supply its global network of customers. Any export possibilities from these markets will also be seized.

And targeted acquisitions will continue to represent an important element in Constantia Flexibles’ global expansion strategy. The sale of Aluprint Plegadizos, the folding carton segment located in Mexico, to the Mexican company Grupo Gondi will be completed by the end of the year as planned.

*currency conversions via xe.com/ucc, and correct as of September 9, 2016