Elopak continued its strong operational performance in the first quarter of 2022, reporting 9% revenue growth. The performance was negatively impacted by the ongoing conflict in Ukraine, as well as unprecedented high prices of raw materials.
Said Elopak CEO Thomas Körmendi: “We are deeply concerned by the suffering caused as a result of the ongoing conflict in Ukraine, and our overriding priority remains the personal safety and security of our employees in the country. While production remains suspended in Russia, we have resumed some domestic production in Ukraine in support of efforts to maintain supplies of essential goods in the country. We will continue to pay the salaries of our 336 employees in Ukraine and Russia until further notice. The financial impact from the crisis was limited in Q1, but we have made an impairment of EUR 22 million and expect to see further effects in the near term.”
Added Körmendi, commenting on Elopak’s operational performance: “I am very pleased with our strong revenue growth delivered in the quarter. This was primarily driven by our ability to pass through cost increases, in addition to higher volumes in segments in both Europe and Americas. We were however faced with unprecedented high raw material prices and inflationary pressure in the quarter, impacting our margins. The inflationary environment will continue to have a negative impact in the second quarter until our recently announced price increases take effect from June. We expect to see recovering margins in the second half of 2022.”
Elopak remains committed to its growth strategy, as demonstrated by its pursuit of new opportunities in MENA and India.
Concluded Körmendi: “Despite the rough waters in the first quarter, our growth journey continues. With the integration of Naturepak into Elopak financials and continued growth in the MENA region, we expect to strengthen our position and deliver improved margins for the Group in the second half of 2022. Our strategic priorities in the near future will be to capitalize on the opportunities coming from the Naturepak integration and a stronger footprint in India, and at the same manage the uncertainties around Russia and Ukraine and raw material prices.” For more visit elopak.com/reports-presentations/
