Record revenues for Elopak

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Elopak said continued high raw material prices impacted the Q4 results. Pic: Elopak

Norwegian-based Elopak ASA, a supplier of carton packaging and filling equipment, said it had a satisfactory end to last year and experienced revenue growth of 12%, compared to the fourth quarter of 2020.

Overall, revenue growth last year was 3.5%, and revenue for the whole of 2021 of €940m ($1.05bn) is the highest Elopak has ever delivered. This led to an operating profit of €121m ($135m).

Adjusted EBITDA of €22.1m ($24.7m) in the fourth quarter of 2021 compared to €26.8m ($30m) in the fourth quarter of 2020, with the adjusted EBITDA margin of 9.3% (12.6% in the fourth quarter of 2020).

Elopak said continued high raw material prices impacted the Q4 results.

The board recommends the AGM to approve a dividend of 0.75 NOK ($0.083)for the year 2021.

"We are pleased to deliver a good result in 2021, despite extraordinary cost increases on both the raw material side and the energy side. Last year was also historic for us, with highlights such as the listing in June and the acquisition of Naturepak in October," said CEO Thomas Körmendi.

Based on the IPO, the acquisition of Naturepak Beverage Packaging Co Ltd, and the environmentally friendly products Pure-TwistFlip and Pure-Pak eSense developed last year, the Elopak CEO said the company is well-positioned for further growth.

"We see that the interest in sustainable solutions is very high, both among our existing and new customers. There is a clear trend that customers want to buy sustainable and environmentally friendly cardboard solutions rather than plastic products. Sustainability has been an integral part of Elopak for many years, and in 2021 we developed several new solutions to meet market demand," Körmendi said.

The company noted EcoVadis, which assesses corporate social responsibility and sustainable procurement, gave Elopak a Platinum EcoVadis rating in the fourth quarter of 2021, meaning Elopak is among the top 1% of the most sustainable companies in all sectors. Körmendi said last year's work, together with the takeover of Naturepak this year, will lay the foundation for a good 2022 for Elopak.

"We delivered a good year in 2021, not least considering the raw material situation in the world. We expect this to be more normalized during the current year. At the same time, we see that the trend towards more sustainable and environmentally friendly cardboard solutions continues, both in Europe and North America. With this backdrop, I am sure that Elopak is well equipped to continue the growth and deliver an even better result in 2022," Körmendi said.