Sonoco-Alcore S.a.r.l. announces that due to the continued escalation in the cost of European energy, it will raise prices by €100 (£85) / tonne on all recycled paperboard grades sold in the Company’s EMEA regions effective for all shipments made on or after the 14th March 2022. “We are continuing to see considerable price volatility in energy markets and across other cost areas of our business. These cost increases, in conjunction with disruptions to our supply chain, now mean that we have no choice but to react to the situation,” said Phil Wolley, Division Vice President – Paper Europe. “We will continue to monitor events as they develop and take actions necessary to maintain supplies to our customers. We cannot, however, rule out further increases or surcharges being required at this stage.” Sonoco Alcore S.a.r.l. is wholly owned by Sonoco (NYSE:SON) and operates 24 tube and core plants and five paperboard mills in Europe.
Intertape Polymer Group Inc. (TSX:ITP) (the “Company”) today released results for its fourth quarter and year ended December 31, 2020. All amounts in this press release are denominated in US dollars unless otherwise indicated and all percentages are calculated on unrounded numbers. For more information, you may refer to the Company’s management’s discussion and analysis (“MD&A”) and audited consolidated financial statements and notes thereto as of December 31, 2020 and 2019 and for the three-year period ended December 31, 2020 (“Financial Statements”).
“Our business has undergone a structural change that has been in the making since 2016,” said Greg Yull, President and CEO of IPG. “The acquisitions we made in protective packaging and machinery automation have strengthened our product bundle. Our capital investment program during that period targeted the key end markets where we have experienced our highest growth. And the onset of the COVID-19 pandemic in 2020 dramatically altered our e-commerce end market, which third parties estimate significantly pulled forward demand and established a new base level on which future growth is expected to continue. As a result of these changes and the leverage on our asset utilization, our margin profile has improved, our free cash flow generation has increased and our ability to grow with our customers is better today than at any point in the history of the Company. Our results in the fourth quarter with revenue growth of 18% and free cash flow of $64 million prove this out. On the strength of these results, we intend to invest in the highest growth areas of the business within our existing plant footprints while maintaining strong free cash flow in 2021.”
Fourth Quarter 2020 Highlights (as compared to fourth quarter 2019):
• Revenue increased 18% to $344.1 million primarily due to an increase in volume/mix primarily driven by increased demand in products with significant e-commerce or building and construction end-market exposure, including wateractivated tapes, protective packaging, and certain other tape products.
• Gross margin increased to 25.7% from 20.7% primarily due to an increase in spread between selling prices and combined raw material and freight costs and favourable plant performance driven by increased scale providing leverage on both fixed costs and recent investments.
• Selling, general and administrative expenses (“SG&A”) increased $20.9 million to $53.4 million primarily due to a $19.9 million increase in share-based compensation expense resulting from an increase in the fair value of cash-settled awards, including the impact of performance adjustments. Excluding share-based compensation expense, SG&A increased $0.9 million.
• Net earnings attributable to the Company’s shareholders (“IPG Net Earnings”) increased $5.5 million to $17.1 million primarily due to an increase in gross profit, partially offset by increases in SG&A and income tax expense.
• Cash flows from operating activities increased $15.3 million to $88.6 million primarily due to an increase in gross profit, partially offset by an increase in cash taxes paid and a decrease in cash flows from working capital.
• Free cash flows were similar at $63.8 million primarily due to an increase in cash flows from operating activities, largely offset by an increase in capital expenditures.
Fiscal Year 2020 Highlights (as compared to fiscal year 2019):
• Revenue increased 4.7% to $1,213.0 million primarily due to an increase in volume/mix primarily driven by increased demand in products with significant e-commerce or building and construction end-market exposure, including wateractivated tapes, protective packaging, and certain other tape products.
• Gross margin increased to 23.8% from 21.3% primarily due to an increase in spread between selling prices and combined raw material and freight costs and favourable plant performance driven by increased scale.
• IPG Net Earnings increased $31.5 million to $72.7 million primarily due to an increase in gross profit and a gain resulting from a fair value adjustment to the Company’s contingent consideration related to the Nortech Acquisition(2) , partially offset by an increase in SG&A.
• Cash flows from operating activities increased in the year ended December 31, 2020 by $44.6 million to $179.6 million primarily due to an increase in gross profit and an increase in cash flows from working capital, partially offset by an increase in cash taxes paid.
• Free cash flows increased by $46.9 million to $133.8 million due to an increase in cash flows from operating activities and a decrease in capital expenditures.
details at: file:///C:/Users/tom.pankow/Downloads/Intertape%20Polymer%20Group%20Reports%202020%20Fourth%20Quarter%20and%20Annual%20Results.pdf