Fedrigoni closes 2024 with revenue up 14.8 percent from 2023

The Fedrigoni Group — a provider of specialty papers for packaging and other creative applications, self-adhesive labels, graphic supports for visual communication and RFID — closed 2024 with adjusted proforma revenue of 2.076bn EUR (2.34bn USD), up 14.8 percent compared to 2023 (1.808bn EUR). Adjusted proforma EBITDA increased by 12.5 percent from 337.7m EUR (380.20m USD) in 2023 to 380m EUR (427.82m USD) in 2024.

Among the key elements in the group's strategy is the global dimension of Fedrigoni, whose revenues in 2024 come 18 percent from the Italian market, while the remaining 82 percent is divided between the rest of Europe (43.2 percent) and the rest of the world (38.8 percent). The latter increased by over 8 percent compared to the previous year, mainly thanks to Fedrigoni North America.

'2024 saw a good recovery in the first half of the year and renewed volatility in the second half, due to the combination of an unfavorable macroeconomic context and a slowdown in the final markets we serve, such as luxury and wine,' said Marco Nespolo, CEO of the Fedrigoni Group. 'Despite everything, we managed to carry out our strategic plan, safeguarding economic performance and expanding (organically and inorganically) our global presence, especially in North America, Latin America and Asia Pacific.'

On the M&A front, the company completed four new deals aimed at expanding the product portfolio and strengthening its global presence: acquisition of a specialty paper plant in China, previously part of the Arjowiggins Group; minority stake in the start-up SharpEnd as part of the company's focus on offering digitized products; acquisition of some assets of Mohawk, the second player in specialty papers in North America; and acquisition of Poli-Tape, a producer of graphic materials for visual communication. The exit from the office paper business was also completed so Fabriano could focus on value-added markets, such as art and drawing, stationery and security papers, minimizing the impact on the people involved thanks to collaboration with the Ministry of Enterprises and Made in Italy, the Marche Region, and the unions.

In addition to continuing to expand in premium labels, graphics and visual communication products, and specialty papers for high-end packaging and creative communication, Fedrigoni is increasingly investing in RFID (UHF, HF and NFC). Fedrigoni's RFID business — represented by Tageos, a manufacturer of RFID inlays and tags that joined the group in 2022 — saw 2024 revenues increase by 132.3 percent compared to the same period in 2023 (128.9m EUR  from 55.5m EUR). Adjusted EBITDA 2024 more than tripled, going from 6.5m EUR (7.32m USD) in 2023 to 21.2m EUR (23.87m USD) in 2024, +226.2 percent.

'Looking ahead to 2025, the first quarter saw a rather soft trend due to the persistence of economic instability,' continued Nespolo. 'The self-adhesive materials business showed an improvement trajectory in the first quarter of 2025 compared to the last quarter of 2024; RFID (not yet consolidated in the balance sheet) maintained its growth trend; the world of specialty papers, on the other hand, showed weak demand, mainly due to the dynamics present in the luxury market. In this context of high volatility, we are implementing countermeasures on volumes and cost structure to ensure some bottom-line growth.'

The direct impact of the US tariffs on the group is mitigated by the presence of production activities in the North American market: a self-adhesive materials production site in North Carolina, an RFID production plant also in North Carolina (built in 2024) and a specialty paper plant in New York state. The company is evaluating potential actions to reduce the impact of tariffs on finished products coming from Europe. Finally, a potential slowdown in volumes could result, symmetrically for all market operators, from a generalized recession linked to the prolongation of the global trade conflict.

Even in 2024, Fedrigoni continued its sustainability commitment. The main focus areas include reducing greenhouse gas emissions, optimizing products according to eco-design and a circular approach, sustainable sourcing, and responsible management of natural resources to improve biodiversity. On the innovation front, the company is prioritizing recycled materials and compostable products, aiming to replace single-use plastics and improve packaging sustainability. Among the most significant projects is the investment in a minority stake in Papkot, an innovative start-up that has developed the first high-strength fiber-based coating technology, completely recyclable and biodegradable, eliminating plastic from single-use packaging. Thanks to its progress, the group achieved a 10-point improvement in the S&P Global Corporate Sustainability Assessment, the platinum rating from EcoVadis, and recognition in the CDP (Carbon Disclosure Project) for environmental management.