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Introduction & Market Context
Elopak ASA (OB:ELO) presented its Q2 2025 financial results on August 14, 2025, highlighting stable overall performance driven by strong growth in the Americas region. The sustainable packaging company, which produces 16 billion cartons annually and serves over 70 markets globally, reported modest revenue growth amid ongoing investments in its U.S. manufacturing capabilities.
Elopak shares closed at 49.4 NOK on August 13, up 1.86% ahead of the results presentation, continuing a positive trend that has seen the stock gain 10.3% year-to-date according to previous reports.
Quarterly Performance Highlights
Elopak reported Q2 2025 revenue of €289.6 million, representing a slight increase of 0.4% compared to the same period last year. On a constant currency basis, organic growth reached 2.4% year-over-year, primarily driven by Pure-Pak® cartons in the Americas and increased revenues from filling machine sales.
EBITDA for the quarter came in at €44.7 million with a margin of 15.4%, showing a 2.1% improvement from Q2 2024. When adjusted for the ramp-up costs of the new U.S. plant, which is approaching break-even, the EBITDA margin reached 15.8%.
As shown in the following chart of quarterly revenue and EBITDA performance:
The company’s Board declared a dividend of €0.03 per share for the first half of 2025, following the payment of the first installment of the 2024 dividend (€21.6 million) in May. This dividend declaration signals management confidence in Elopak’s financial position despite ongoing capital expenditures.
Regional Performance Analysis
Elopak’s performance varied significantly by region, with the Americas showing robust growth while EMEA (Europe, Middle East, and Africa) remained relatively flat.
The EMEA region, which accounts for 73% of total revenue, posted Q2 2025 revenue of €219.9 million, a marginal increase of 0.2% year-over-year. EBITDA for the region declined by 3.9% to €34.4 million, with margins contracting to 15.7% from 16.4% in the prior year. Management attributed this margin pressure to increased sales in India and the equipment segment, as well as higher R&D activity in line with the company’s strategy.
The following chart illustrates EMEA’s performance metrics:
In contrast, the Americas region delivered strong results with Q2 2025 revenue of €78.3 million, representing a 7.4% increase year-over-year. On a constant currency basis, organic growth reached an impressive 14%. This growth was primarily driven by strong closure sales in the fresh dairy segment in the United States. EBITDA for the region increased by 6.1% to €17.2 million, with an adjusted margin of 23.6% excluding the new plant ramp-up costs.
The Americas performance is detailed in this chart:
CEO Thomas Körmendi highlighted that the U.S. plant is now in commercial production and is approaching break-even, with the company maintaining its target to be fully ramped-up by the end of 2025.
Strategic Initiatives and Sustainability Focus
Elopak continues to position itself as "a sustainability frontrunner with innovative solutions across multiple packaging segments," focusing on three strategic priorities: realizing global growth, strengthening leadership in core markets, and leveraging the shift away from plastic packaging.
The company showcased several sustainability innovations during the presentation, including:
1. A new Natural White Board for Pure-Pak® cartons launched in Norway with Rørosmeieriet and Coop, featuring a white exterior and brown interior without clay coating. This design significantly reduces polyethylene usage and provides up to 14% decrease in CO2 emissions compared to existing boards.
2. Cartons and closures incorporating recycled polymers, already available through customer Orkla Home and Personal Care. This solution meets expected Packaging and Packaging Waste Regulation requirements and reduces the CO2 footprint by approximately 20% compared to fossil-based polymers.
The following image highlights these sustainability innovations:
Additionally, Elopak presented its advanced Pure-Fill platform for filling ambient products, which offers flexibility for new shapes, formats, and sustainability features, positioning the company for future revenue growth.
Financial Position and Outlook
Despite solid operational performance, Elopak’s financial metrics show some pressure points. The company’s net financial debt increased to €302 million as of June 30, 2025, up from €299 million at the end of Q1 2025. This increase occurred despite generating €42.7 million in cash flow from operations, as the company invested €19.9 million in capital expenditures and paid €22 million in dividends during the quarter.
The following chart illustrates the company’s cash flow and debt position:
Elopak’s leverage ratio remained stable at 2.3x, while Return on Capital Employed (ROCE) continued its declining trend, reaching 14.6% in Q2 2025 compared to 17.7% in Q2 2024. This decline reflects the significant investments in the U.S. plant, with accumulated investments of $80 million between 2024 and YTD 2025, and remaining investments of $18 million planned for the second production line.
The leverage and ROCE trends are shown in this chart:
Earnings per share declined to €0.03 in Q2 2025, down from €0.06 in the same period last year, while cash flow from operations for the first half of 2025 reached €43 million, slightly below the €48 million generated in the first half of 2024.
Looking ahead, management expressed confidence in continuing the strong performance from the first half of 2025, despite acknowledging a "more uncertain and competitive market environment." The company remains focused on completing the ramp-up of its U.S. plant by year-end and continuing to drive growth through sustainable packaging innovations.
Full presentation:
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