Highlights • Strong financial performance, good momentum ◦ Higher sales volumes, higher average selling prices and effective cost control ◦ Underlying EBITDA of €709 million, with margin of 19.5% ◦ Cash generated from operations of €552 million ◦ Balance sheet at 1.5x net debt to underlying EBITDA • Investing through-the-cycle ◦ Completed acquisition of Olmuksan, strengthening our position in the fast growing Turkish corrugated market (€88 million on an implied 100% EV basis) ◦ Good progress on capital investment projects, delivering growth, sustainability benefits and enhanced cost competitiveness (€286 million capital investments in the period) ◦ Approved €125 million upgrade and expansion of Kuopio containerboard mill (Finland) and further investment in corrugated plants to support strong growth in eCommerce • Launched Mondi Action Plan 2030 (MAP2030), our sustainability framework for the next decade • Signed €750 million revolving credit facility aligning financing with MAP2030 and extending debt maturity profile • Interim dividend declared of 20.0 euro cents per share • Well-positioned for growth in packaging markets, with cost-advantaged asset base, strong financial position and unique portfolio of sustainable solutions
Intertape Polymer Group Inc. (TSX:ITP) (the “Company” or “IPG”) today released results for its fourth quarter and year ended December 31, 2021. 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, 2021 and 2020 and for the three-year period ended December 31, 2021 (“Financial Statements”).
“Strong demand and the effectiveness of our pricing strategy drove revenue growth of more than 20% and 26% in the quarterly and annual periods, respectively, with record sales of more than $1.5 billion in 2021,” said Greg Yull, President and CEO of IPG. “This increase in revenue consisted of organic growth from volume/mix of 12% in 2021 and price increases to offset higher input costs. The global supply chain challenges continued in the fourth quarter and into 2022 which have impacted our production. Our procurement and sales teams are effectively managing a difficult situation to ensure our key customers have sufficient supply of our essential packaging and protective solutions. The business is stronger today than when we entered the pandemic. Our competitive position and the investments we are making in our high growth markets put us in a great position for continued growth in the 2022 and beyond.”
Fourth Quarter 2021 Highlights (as compared to fourth quarter 2020):
• Revenue increased 20.2% to $413.7 million primarily due to the impact of higher selling prices and an increase in volume/mix primarily driven by certain tapes and dispensing machines.
• Gross margin decreased to 19.7% from 25.7% primarily due to the unfavourable mathematical impact of Dollar Spread Maintenance(2) and an increase in plant operating costs including costs associated with supply chain disruptions and labor shortages, partially offset by a favourable product mix.
• Selling, general and administrative expenses (“SG&A”) decreased $9.9 million to $43.5 million primarily due to a decrease in the fair value of cash-settled share-based compensation awards in the fourth quarter of 2021 compared to a significant increase in the fourth quarter of 2020, partially offset by an increase in costs resulting from the growth of the business in 2021 and the non-recurrence of cost saving measures implemented in response to COVID-19 related uncertainty in 2020.
• Net earnings attributable to the Company’s shareholders (“IPG Net Earnings”) decreased $8.0 million to $9.1 million primarily due to an increase in finance costs mainly due to an increase in the NCI Put Options Revaluation(3) and a decrease in gross profit, partially offset by a decrease in SG&A.
Fiscal Year 2021 Highlights (as compared to fiscal year 2020):
• Revenue increased 26.3% to $1,531.5 million primarily due to the impact of higher selling prices in all product categories driven by significant increases in the cost of raw materials and freight as well as an increase in volume/mix. 1
• Gross margin decreased to 22.2% from 23.8% primarily due to the unfavourable mathematical impact of Dollar Spread Maintenance.
• IPG Net Earnings decreased $4.9 million to $67.8 million primarily due to (i) an increase in finance costs mainly due to the 2018 Senior Unsecured Notes Redemption Charges(5), the non-recurrence of the Nortech Contingent Consideration Gain(6) and an increase in the NCI Put Options Revaluation, and (ii) an increase in SG&A, partially offset by an increase in gross profit.
details at: https://www.itape.com/investor%20relations/press%20releases%20and%20reports