Quadpack manages to buck market weakness in the first half of 2023. The cosmetics packaging company released its 2023 results this week and noted that, despite a 5% year-on-year decline in revenues, its EBITDA grew 29% to €9.4m in the first six months.
The company explained in the press release that they have felt the effects of the weak market, and that, for this reason, revenues have been slightly weaker with a 5% drop. The exact figure was 70.1 million euros. However, despite rising inflation and geopolitical tensions in the first six months of 2023, Quadpack managed to consolidate a 29% increase in EBITDA margin to 9.4 million euros and reduced its net debt by 9% compared to the same period last year. Quadpack explained that geopolitical conflicts, China's slow recovery and high inflation levels are hampering economic growth, and this situation and context is expected to last until 2024.
Quadpack Has highlighted also that this 2023 the company has initiated a new strategy of business that prioritises the financial discipline to turn into an organisation of high performance for later happen to a phase in which it favour the innovation of products. This phase, as it has signalled the own company in his press release, will go accompanied of other actions more on a long-term basis like the improvement of the experience of the customer, an expansion of the capacity of manufacture, strategic associations and the development of new lines of business.
Quadpack has also highlighted that by 2023 the company has embarked on a new business strategy that prioritises financial discipline to become a high-performance organisation and then moves to a phase that favours product innovation. This phase, as the company itself pointed out in its press release, will be accompanied by longer-term actions such as improving the customer experience, expanding manufacturing capacity, strategic partnerships and developing new business lines.
Regarding financial discipline, the cosmetic packaging manufacturer has explained that during 2022 and so far in 2023, the company has undergone an organisational restructuring with the aim of streamlining and making the company more efficient in terms of digitisation and other processes, which is expected to generate recurring annual savings of one million euros.
In terms of sustainability, Quadpack highlights its collaboration with various organisations that help improve the sector's social and environmental practices and highlights product innovations that facilitate recycling.
Alexandra Chauvigné, CEO of Quadpack, has assessed these results as encouraging as the market looks in 2023 and expects the company's acceleration phase to begin in 2024: "Our half-year results are encouraging, considering the global challenges we all face. We are putting the pieces in place to ensure sustainable growth, profitability and positive impact, while meeting our stakeholder obligations. Our strategy has sustained us through a period of market volatility and we are strengthening our base before entering an acceleration phase in 2024. 2023 will be a good year for Quadpack's global team as we become leaner, more agile and more proactive in making a positive impact on the world."