Despite a mixed business environment and large variation between markets during 2016, the Group advanced well. Demand for food packaging continued to grow in Eastern Europe, North America and Southeast Asia. In Middle East and Africa demand was negatively affected by political uncertainty and availability of hard currency. In Western Europe demand growth was moderate. Prices of resin-based raw materials and paperboard remained relatively stable during the year, while prices for recycled fiber were on a somewhat higher level compared to previous year. Currency translation impact on the Group’s net sales and earnings was negative. The majority of the negative currency impact came from the weakening of emerging market currencies and the pound sterling versus euro.
The Group’s net sales grew to EUR 2,865 million (EUR 2,726 million). Comparable net sales growth was 4% in total and 7% in emerging markets. The Group’s profitability improved with Adjusted EBIT* being EUR 268 million (EUR 238 million) and reported EBIT EUR 266 million (EUR 215 million). Adjusted EBIT margin* was 9.4% (8.7%) and Adjusted earnings per share (EPS)* were EUR 1.83 (EUR 1.65). The Group’s free cash flow also improved compared to 2015 and was EUR 100 million (EUR 91 million). The Group’s financial position remains strong, supporting its future growth ambitions.
During the year the Group continued its growth strategy in food and drink packaging. Four acquisitions were completed during the year, the largest of them a folding carton packaging manufacturer based in Northern Ireland and Poland. The Group also continued significant investments in organic growth and announced several projects to build new manufacturing units, for example in Arizona, the U.S., and in Egypt.
* Excluding items affecting comparability (IAC) of EUR -1.7 million in 2016 and EUR -22.6 million in 2015.
