The Klöckner Pentaplast Group is a global leader in providing packaging, printing, and specialty solutions serving the pharmaceutical, medical device, food, beverage, and card markets among others. With a broad portfolio of rigid plastic films and services powered by innovation, kp plays an integral role in the customer value chain by marketing and protecting product integrity, safety, consumer health, and, ultimately, brand reputation.
With the emergence of the plastics industry in the 1960s, kp was founded in 1965. kp has grown from its initial facility in Montabaur, Germany, to current operations in 12 countries with 18 production sites. The company employs more than 3,000 people committed to serving customers worldwide.
* Million Euros
Our success is driven by the following factors:
- Leading market positions in Europe & North America with truly global footprint and a strong and growing presence in emerging markets
- Technological leadership & superior manufacturing capabilities
- Compelling product mix & end-user markets
- Strategic investments in attractive segments
- Sound volume growth
- Good cost management
- Robust and resilient profitability proven through the cycles
- Strong cash flow generation
FY 2012/2013 results reflect that our strategy delivers value for our customers, as kp continues to leverage its leadership position to deliver profitable growth. Net Sales increased by 2% versus prior year to €1,191 million. This robust performance was driven by an increase in volumes for our core markets and demonstrates the success of our focus on quality, continuous innovation, and unique customer relationships. In the next year, we will strengthen our focus on expansion into higher value-add product segments and fast-growing emerging markets. Moreover, we will continue to drive innovation, recruit strong talent, and empower the organization to deliver strong results.
Adjusted EBITDA improved substantially by 14% to €174 million. This marked improvement in our profitability is attributable to significant investments in and a broad set of initiatives focused on operations excellence, sales excellence, and innovation.
The Klöckner Pentaplast Group also increased its available liquidity to €189 million (previous year: €145 million). The strong operational and cash flow performance, coupled with Net working capital improvements, enabled the company to make several voluntary prepayments of its term loan. This contributed to a decrease in Net debt by €90 million to €430 million. This ability to deleverage reflects our solid financial footing and strong liquidity position.
Adjusted EBITDA for the first nine months of the FY 2013/2014 improved by 2.8% versus the same period in the prior year to €133,8 million. For the last twelve months, Adjusted EBITDA increased to €177,3 million. These results clearly reflect that kp’s operational strength is not only robust, but sustainable. The positive effects of our initiatives focused on operational excellence, sales excellence, and innovation are continuing to pay off. We expect these initiatives to deliver further improvements in the coming months.
Additionally, our strong performance has permitted the company to make several voluntary prepayments on its term loan. These payments contributed to a significant deleveraging of kp’s balance sheet. At the end of the third quarter, net debt was more than €84 million below the prior year’s level.
Looking to the future, we will continue to:
- Strengthen our global talent base
- Create value for and innovate with our customers
- Selectively strengthen and expand geographical presence, especially fast-growing Emerging Markets
- Leverage global position in key segments
- Further expand our product portfolio by developing innovative films to meet market needs
- Focus on value-added products and applications
- Continuously improve operating efficiencies
- Maintain technological and production leadership position
- Build strategic partnerships to create integrated solutions for targeted segments
- Implement cost-down/cost-out initiatives to sustain competitive advantage
- Encourage and assist our employees to develop their full potential
- is the preferred film solutions partner worldwide
- anticipates the needs of our customers
- maximizes the power of our employees
- delivers sustainable profitability
Dr. Christian Holtmann (Chief Executive Officer)
Dr. Markus Hölzl (Chief Financial Officer)
Klöckner Pentaplast Group
3585 Klöckner Road, P.O. Box 500
Gordonsville, Virginia, USA 22942