SIG Group AG: Third quarter and nine months 2025 trading update
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SIG Group AG / Key word(s): Quarter Results Werbung Werbung MEDIA RELEASE SIG Group AG Third quarter and nine months 2025 trading update
Werbung Werbung Key performance indicators
Non-recurring charges As announced on September 18, 2025, following a strategic review of the business and in light of the prevailing soft market conditions, the Group has recognized non-recurring charges of €320 million pre-tax for the quarter ended September 30, 2025, of which nearly all of the amount is non-cash. It is expected that the remaining part of the charges, up to €40 million, will be booked in the fourth quarter of 2025. Associated cash outflows will also occur in 2026. The non-recurring charges can be categorized as follows: Bag-in-box and spouted pouch: approximately €100 million impairment to the value of the bag-in-box and spouted pouch business reflecting weak consumer sentiment and business performance. This has affected the recoverability of acquisition-related assets. Werbung Werbung Chilled carton: approximately €85 million impairment to the value of the chilled carton business principally reflecting weak market conditions in China, which have impacted the recoverability of assets. Markets and capacities: approximately €75 million impairment related to the assessment of required operating capacities in aseptic carton within the context of the current weaker market environment. Innovation: a charge of approximately €55 million mostly related to equipment, spare parts and the impairment of capitalized development costs. Restructuring/other: approximately €5 million of restructuring costs for severances. In accordance with SIG’s definition of adjusted EBITDA, charges where regional management is held accountable for the delivery of returns on customer projects, such as filling line investments or new product launches, remain included as part of adjusted EBITDA. Impairment of intangible assets, write-down of production-related assets and restructuring costs are excluded from adjusted EBITDA. 2025 Guidance SIG confirms its revised 2025 full year guidance as announced on September 18, 2025. It continues to expect slightly negative to flat revenue growth at constant currency and constant resin. Including the non-recurring charges, the adjusted EBITDA margin for 2025 is expected to be around 21%. Excluding non-recurring charges, the adjusted EBITDA margin is expected to be in the range of 24.0-24.5%. Furthermore, as announced on September 18, 2025, the Board of Directors has proposed to pause the cash dividend for the year ending 2025. This decision was taken in order to prioritize capital discipline. For additional details on the Group’s debt covenants, which are not considered a concern, refer to the Leverage section below. Revenue by region: nine months
Year to date in 2025, revenue performance has been affected by weakening consumer confidence throughout the year. In Q1 2025, volumes benefitted from a more positive expectation about end-consumer demand for the year. This momentum slowed in Q2, which initially appeared specific to a few markets, before Q3 saw a more pronounced decline in orders as customers adjusted inventory levels to reflect the deteriorating consumer sentiment. Revenue by region: third quarter
Europe For the first nine months of 2025, European revenue declined by 2.6% on a constant currency and constant resin basis and declined by 2.5% on a constant currency basis. Growth in the region has been normalizing following exceptional growth of 6.6% at constant currency and constant resin for the first nine months of 2024. The performance year to date reflects several factors including lower availability of raw milk for aseptic processing compared to strong supply conditions in 2024. In addition, 2024 benefitted from the ramp-up of filler placements following wins related to EU regulation on tethered caps in prior years. Germany in particular experienced a soft third quarter, due to an increased conversion of raw milk into cheese and lower export volumes of UHT milk. The juice category in the region has also declined, impacted by a weak summer season. There is a good project pipeline in the region for spouted pouch and in dairy bag-in-box. India, Middle East and Africa For the first nine months of 2025, revenue growth in India, Middle East and Africa (IMEA) was 0.4% on a constant currency and constant resin basis. On a constant currency basis, revenue grew by 0.5% for the period. On the back of a strong prior year comparison of 20% growth, Q3 revenue declined 8.2%. This reflected a slowdown in demand for cartons in the Middle East and Africa. In India, market growth has been lower than expected, which has particularly impacted the on-the-go non-carbonated soft drinks segment. Bag-in-box and spouted pouch revenue growth has been strong, driven by growth in India. Asia Pacific For the first nine months of 2025, revenue growth for Asia Pacific has been stable with growth of 0.1% on a constant currency basis and on a constant currency and constant resin basis. Growth in the third quarter, however, was negative 1.4%. In China, in aseptic carton the region continues to focus on offering differentiated pack sizes and new product launches leading to market share gains despite a soft market environment. In chilled carton, performance has been affected by the competitive market environment and subdued market conditions, while bag-in-box has seen good growth in dairy. Elsewhere in the region, market softness in Thailand and Vietnam led to customer destocking partially offset by a recovery in Indonesia. Americas For the first nine months of 2025, revenue growth in the Americas was 2.6% on a constant currency and constant resin basis, and 4.2% on a constant currency basis. In Q3 2025, revenue declined by 2.8% on a constant currency and constant resin basis. Year to date, in aseptic carton there was good growth in Mexico, Chile, Argentina and Colombia especially in dairy. This was offset by customer destocking in Brazil. In the United States, bag-in-box has experienced a slowdown in Q3 following good growth, especially in syrups and dairy, in the run up to the key 100-days of summer period. The out-of-home dining market has remained soft reflecting subdued consumer confidence. Bag-in-box has also been impacted by a declining market in the retail business, where the wine category is in decline, as well as lower industrial bag volumes. Adjusted EBITDA Adjusted EBITDA for the first nine months of the year amounted to €495.4 million (9M 2024: €575.4 million). The adjusted EBITDA margin of 21.1% for the nine months (9M 2024: 24.0%) was impacted by the non-recurring charges described above. Excluding these charges, adjusted EBITDA was €556.3 million and the margin amounted to 23.7%. At constant currency and excluding non-recurring charges, adjusted EBITDA increased 1.3% compared with the prior nine-month period. Year to date, the appreciation of the Euro particularly against the Brazilian Real, Mexican Peso, US Dollar and Chinese Renminbi has reduced the adjusted EBITDA margin by 50 basis points. Improvements to adjusted EBITDA compared with the first nine months of 2024 were driven by price increases and a favourable product mix as well as lower raw material costs mostly due to a favourable polymer price environment. Higher production costs reflected unabsorbed fixed costs and lower production efficiencies due to weaker than expected volumes in the third quarter. SG&A costs were impacted by wage Inflation and growth investments in the first half of the year, while Q3 saw a slowdown in the rate of increase compared to H1 2025. The table below details the reconciliation of profit for the period to EBITDA and adjusted EBITDA:
Net income and adjusted net income 9M 2025 adjusted net income amounted to €153.0 million (9M 2024: €197.7 million). Excluding non-recurring items, as described above, adjusted net income was €196.9 million which was in line with the prior year period. The decrease in adjusted EBITDA and higher depreciation was offset by lower tax and finance expense. The loss for the period was €130.8 million, which was affected by the non-recurring charges. Excluding those charges, profit for the period was €138.2 million. Details of the reconciliation of profit for the period to adjusted net income can be seen in the table below.
Lower PPA depreciation and amortization for the Onex acquisition reflects the cessation of amortization from Q2 2025 onwards. Net capital expenditure
Net capital expenditure was €168.9 million, in line with the prior-year period. As a percentage of revenue, net capex, including lease payments, remained at around 7%, consistent with the prior year. Free cash flow
The free cash flow result for the nine months ended September 30, 2025 mostly reflected the impact of lower EBITDA compared with the prior period, including unfavorable currency movements against the Euro, and an increase in customer incentive payments for strong volume growth in 2024. In line with the Group’s usual seasonality, peak cashflow generation is expected in the final quarter of the year. Leverage
Net leverage, defined as net debt to adjusted EBITDA, as of September 30, 2025 was 3.3x (September 30, 2024: 3.0x). The increase compared to December 31, 2024 reflects the usual seasonality of the business. Net debt as of September 30, 2025 was broadly in line with the prior period, driven by the translation of US dollar debt into a lower EUR amount offset by a slight increase in gross debt due to the construction of the Indian sleeves plant. The Group’s debt covenants stipulate a net leverage ratio of no more than 4.0 times, reported bi-annually. The calculation is based on net debt to adjusted EBITDA, excluding asset impairments. Based on this calculation, for the last twelve months ending September 30, 2025 the leverage ratio was 3.1 times. Investor Update on October 30, 2025 SIG’s Chair, Ola Rollén, and management will update on the Group’s strategy, capital allocation and mid-term guidance at the investor update on October 30, 2025.
Investor contact: Ingrid McMahon
Andreas Hildenbrand
[1] Constant resin growth excludes the impact of movements in the resin price in the bag-in-box and spouted pouch businesses Any movement in resin costs is directly passed on to customers. [2] unaudited [3] Unaudited [4] For the different adjustments to EBITDA, refer to the adjusted EBITDA table above.
Founded in 1853, SIG is headquartered in Neuhausen, Switzerland, and is listed on the SIX Swiss Exchange. The skills and experience of our approximately 9,600 employees worldwide enable us to respond quickly and effectively to the needs of our customers in over 100 countries. In 2024, SIG produced 57 billion packs and generated €3.3 billion in revenue. SIG has an AAA ESG rating by MSCI, a Platinum CSR rating by EcoVadis, and is included in the FTSE4Good Index. For more information, visit www.sig.biz Disclaimer and cautionary statement The information contained in this media release and in any link to our website indicated herein is not for use within any country or jurisdiction or by any persons where such use would constitute a violation of law. If this applies to you, you are not authorized to access or use any such information. This media release contains “forward-looking statements” that are based on our current expectations, assumptions, estimates and projections about us and our industry. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words “may”, “will”, “should”, “continue”, “believe”, “anticipate”, “expect”, “estimate”, “intend”, “project”, “plan”, “will likely continue”, “will likely result”, or words or phrases with similar meaning. Undue reliance should not be placed on such statements because, by their nature, forward-looking statements involve risks and uncertainties, including, without limitation, economic, competitive, governmental and technological factors outside of the control of SIG Group AG (“SIG”, the “Company” or the “Group”), that may cause SIG’s business, strategy or actual results to differ materially from the forward-looking statements (or from past results). For any factors that could cause actual results to differ materially from the forward-looking statements contained in this media release, please see our prospectus for the offering and listing of senior bonds notes in March 2025. SIG undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. It should further be noted that past performance is not a guide to future performance. Please also note that quarterly results are not necessarily indicative of the full-year results. Persons requiring advice should consult an independent adviser. The declaration and payment by the Company of any future dividends and the amounts of any such dividends will depend upon SIG’s ability to maintain its credit rating, its investments, results, financial condition, future prospects, profits being available for distribution, consideration of certain covenants under the terms of outstanding indebtedness and any other factors deemed by the members of the board of directors to be relevant at the time, subject always to the requirements of applicable laws. Some financial information in this media release has been rounded and, as a result, the figures shown as totals in this media release may vary slightly from the exact arithmetic aggregation of the figures that precede them. In this media release, we utilize certain alternative performance measures, including but not limited to EBITDA, adjusted EBITDA, adjusted EBITDA margin, net capex, adjusted net income, free cash flow and net leverage ratio that in each case are not defined in IFRS Accounting Standards. These measures are presented as we believe that they and similar measures are widely used in the markets in which we operate as a means of evaluating a company’s operating performance and financing structure. Our definition of and method of calculating the alternative performance measures stated above may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS Accounting Standards or other generally accepted accounting principles, are not measures of financial condition, liquidity or profitability and should not be considered as an alternative to profit from operations for the period or operating cash flows determined in accordance with IFRS Accounting Standards, nor should they be considered as substitutes for the information contained in our consolidated financial statements. You are cautioned not to place undue reliance on any alternative performance measures and ratios not defined in IFRS Accounting Standards included in this media release. Alternative performance measures For additional information about alternative performance measures used by management that are not defined in IFRS Accounting Standards, including definitions and reconciliations to measures defined in IFRS Accounting Standards, please refer to the link below: Additional features: File: SIG_Q325_251028_English End of Inside Information |
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| Language: | English |
| Company: | SIG Group AG |
| Laufengasse 18 | |
| 8212 Neuhausen am Rheinfall | |
| Switzerland | |
| Phone: | +41 52 674 61 11 |
| Fax: | +41 52 674 65 56 |
| E-mail: | info@sig.biz |
| Internet: | www.sig.biz |
| ISIN: | CH0435377954 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 2219346 |
| End of Announcement | EQS News Service |
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2219346 28-Oct-2025 CET/CEST
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