Quadpack Industries has presented its results for fiscal year 2019, maintaining a compound annual growth of 25% since 2015.
Quadpack closed 2019 with a turnover of € 131 million, 25% more than the previous year. Organic growth represented 15%. EBITDA increased by 40%, reaching € 13,6 million with a healthy EBITDA margin of 10,4% (% of net sales). Net income reached € 3.7 million with a net income margin (% of net sales) of 2,8% and earnings per share of € 0.92 and diluted earnings per share of € 0.88.
The net debt / EBITDA ratio remained at 3.0. Quadpack's organic net debt was just € 1,6 million. Dividends were paid for the fourth consecutive year.
Strategic acquisitions
In 2019, Quadpack achieved the highest inorganic growth since it began its M&A activity in 2013, with a positive effect on turnover. In mid-2019, Quadpack made two acquisitions in Germany: the injection molding specialist Louvrette GmbH and the cosmetics business of the engineering company Inotech. The 2019 fiscal year included the mid-year results of both. The agreement of inotech also granted Quadpack exclusive worldwide commercial rights to its innovative bi-injection blow molding (BIBM) technology.
Listing on the stock exchange
This strong position coincided with the transfer to the Euronext Growth stock market in Paris on October 16. Following approval of direct admission by Euronext, the share price was € 32.8 on IPO day, with a market capitalization of € 138 million. The listing on this market will expand the company's means of financing its double-digit growth.
Physical growth
In terms of physical expansion, Quadpack's corporate headquarters in Barcelona, Spain, was complemented with 800m2 of space dedicated to collaborative work areas, a larger test laboratory and a spectacular new showroom. In the Asia-Pacific region, one of Quadpack's three key territories along with Europe and the Americas, the company opened a larger office in Seoul, Korea, to house its sourcing and service teams, as it seeks to balance its presence around the world. The global Quadpackers family grew by 200, with nearly 600 people now spread across four continents.
Sustainability and Innovation
The company made significant progress in the areas of sustainability and innovation. At the close of 2019, Quadpack was named “Preferred Global Partner in Cosmetic Packaging” by sulapac, a Finnish pioneer in biodegradable materials and without microplastics. Quadpack will now develop new packaging formats using Sulapac material for global beauty brands.
An R&D partnership was forged with Inotech's engineering team, to leverage their knowledge in sectors such as automotive, telecommunications, and pharmaceutical technology to come up with new ideas for cosmetic packaging. Inotech's expertise will help Quadpack realize the full potential of BIBM technology, a process that enables the production of containers using two materials in a single pass.
In an exercise of transparency, the company will publish its non-financial information report for the first time.
«We entered the COVID-19 crisis with a strengthened balance sheet, a solid liquidity position and a strong order book and we have reacted quickly, executing a comprehensive risk mitigation plan that ensures our business strategy in the short and medium term, »Said Quadpack CFO Bard Bevelander.
Quadpack CEO,Tim eavesHe said: “The pandemic has been difficult for everyone, but it has also validated our business strategy. The beauty packaging industry is resilient and our small big business model has provided a strong structure, along with the agility to adapt to radically changing circumstances, to the point where we are in a position to help COVID efforts. -19 through our factories and supply chain. It is clear to us that we must continue to invest in innovation, our facilities and our people, and collaborate with industry to create a more sustainable future for all. "
