Constantia Flexibles sees sales surpass €2bn in 2016

In 2016, the company also achieved record operating profit before exceptional items. Both sales and earnings were boosted by contributions from newly acquired companies in growth markets, which are a key element of Constantia Flexibles’ global strategy.

According to preliminary results, sales increased by 8.6 percent to roughly 2.1 billion EUR (2.2 billion USD) in 2016. Newly-acquired Afripack, Pemara and Oai Hung contributed 152.3 million EUR (164.2 million USD) to sales. Adjusted for exchange rate effects and portfolio changes, organic sales growth was 1.5 percent year-on-year. This growth was achieved in all markets and was generated by volume increases, as well as improvements in the price and product mix, Constantia Flexibles reported. 

‘On behalf of the board of management, I would like to thank our dedicated employees for increasing sales and operating profit in 2016 – our seventh year in succession,’ said Alexander Baumgartner, Constantia Flexibles CEO. ‘We are especially pleased with the margin improvement and aim to further improve profitability by pushing ahead with our global growth strategy, focusing on selective end-markets in attractive regions with our customers.’

In the Labels division, sales increased by 11.8 percent year-on-year to 604.7 million EUR (652.1 million USD) in 2016. The Labels division’s share of Constantia Flexibles’ total sales was 29.1 percent. Market growth in 2016 was characterized by increasing demand for higher value labels, primarily self-adhesive labels, particularly in the global beer market. Constantia Flexibles said the 2013 acquisition of Spear Group allowed it to benefit from this market trend. An additional sales driver was increased global demand for wet-glue labels. Growth was also supported by the continuous expansion of existing business relationships and the addition of new customers in Asia.

Sales in the Food division increased by 6.8 percent to 1.2 billion EUR (1.3 billion USD), with growth in America in 2016 described as ‘especially encouraging’. The business with film-based snack packaging achieved significant sales increases. Sales in Europe declined slightly, primarily due to lower raw materials prices. Sales volumes of film-based packaging for confectionery and ready-made meals increased yet again. Furthermore, additional drivers of innovation, such as portion packs for coffee and tea, gained market share. Sales in the emerging markets were challenging in 2016 due to the difficult political environment in Turkey and neighboring countries.

Last month, Constantia Flexibles acquired Italian dairy lidding company, Alucap near Trento, the area with the highest yoghurt production in Italy. Alucap supplies aluminum die-cut lids and plastic films to local dairies and international food manufacturers.

The Constantia Flexibles Pharma division saw sales increase by 5.6 percent to 312.6 million EUR (337.1 million USD) in 2016. In addition to an increase in sales in the core European region, the share in the emerging markets was significantly improved through the acquisition of Oai Hung; volume growth in the American market in the first half of the year was dampened, primarily in the core pharmaceuticals business, following a very strong growth period in the previous year.