QUADPACK: Pandemic stops trajectory of annual growth / FY net income sees first ever loss -- K Trade Fair

21/07/2021

Plastics News by Plasteurope.com

QUADPACK: Pandemic stops trajectory of annual growth / FY net income sees first ever loss

Slump in demand for cosmetics packaging (Photo: Quadpack)
Cosmetics packaging maker Quadpack (Barcelona / Spain; www.quadpack.com) suffered its first ever income loss and revenue drop as the Covid-19 pandemic depressed profit to a loss of EUR 1.5m in the fiscal year ending January 2021, from a profit of EUR 3.7m the year earlier. Revenues decreased 22% to EUR 131m amidst an 8% slowdown in the global beauty market, which has had a decade of 3-5% growth yearly.

The first-time inclusion of results of Inotechs (Nabburg / Germany; www.inotech.de) cosmetics business and German rival Louvrette (Kierpse; www.louvrette.de), both acquired in 2019, had partly offset the decline in organic revenue growth (see Plasteurope.com of 24.09.2019 and 02.10.2019).

Wage cuts generated savings that helped mitigate a steep fall in operating profit, which had managed to end positive at EUR 0.2m. EBITDA reached EUR 8.5m from EUR 13.6m. EMEA, accounting for 80% of sales in 2020, was the worst hit with a 20% sales decline. The Americas remained resilient during the crisis, posting growth of 8%. Asia-Pacific remained flat.

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