Investment story

1. Leading player in aluminium flexible packaging in Europe and MENA

Aluflexpack was founded in Zadar (Croatia) all the way back in 1982. Ever since, aluminium-based flexible packaging solutions have formed the focus of the company’s operations.

Following its acquisition by Montana Tech Components in 2012 and the IPO in 2019, Aluflexpack is now one of the top three players in the field of converted, flexible aluminium-based packaging and barrier solutions in Europe and the MENA region, a success owed in part to the extensive material and process know-how it has built up over the decades. This, combined with state-of-the-art equipment, stringent process controls and a pool of high-quality partners and suppliers, makes Aluflexpack the preferred partner for many customers, from big multinational brand owners to small local companies.

2. Exceptional growth track record

Aluflexpack’s focus on attractive end markets and targeted investments in organic and inorganic growth projects has propelled the company’s exceptional growth and put it ahead of its major peers in the industry.

From 2016 to 2023, Aluflexpack achieved a compound annual growth rate in net sales of 14.9%. In this period, also organic growth averaged more than 10% per year. Supported by the major expansion at its site in Drniš (Croatia) in 2021, Aluflexpack aims at continuing its dynamic growth. By 2025, Aluflexpack targets organic net sales between €450-500m.

3. Focus on defensive end markets 

Aluflexpack’s packaging solutions are mainly for food (including pet food) and pharmaceutical applications, where demand tends to be highly stable.

In these markets, the focus is on fast-growing segments and attractive product categories, such as foil for full-aluminium coffee capsules in the Coffee and Tea end market and blister foil in the Pharmaceuticals end market, thus utilising its highly specialised production capabilities and capitalising on healthcare opportunities in emerging markets. As for the Pet food end market, Aluflexpack has expanded its portfolio of aluminium trays to include highly convenient stand-up pouches.

Beyond these areas of focus, Aluflexpack is also a leading provider of packaging solutions in the Dairy, Confectionery, Other food and Other non-food end markets, for which the company produces various forms of foils/film, lids, containers and pouches.

4. Well-invested and deeply integrated platform

From the time of Aluflexpack’s acquisition by Montana Tech Components in 2012, up until 2023, the company has invested heavily in its platform, both organically and inorganically, transforming itself from a local packaging producer to a leading flexible packaging specialist.

In 2023, Aluflexpack finalised its new facility in Drniš (Croatia), where the company invested approx. €70m, strengthening its integrated value chain and supporting its six value accretive acquisitions in France, Poland, Switzerland, Turkey and Tunisia, which have served as a base for expanding Aluflexpack’s geographical presence, customer pool, technological toolbox and strong competitive position both in Europe and the MENA region.

5. Sustainability at the forefront of our agenda

Sustainability is at the top of Aluflexpack’s agenda, with targeted measures being taken to decarbonise the company’s footprint, drive circularity and enhance product recyclability.

In 2023, the company recorded the following achievements:

• Scope 1 & 2 emission intensity reduced by 4.8% y-o-y
• Waste diversion rate increased to 90.5% as a result of the introduction of better waste management practices (FY 2022: 75.4%)
• Continuous work on development of new circular flexible packaging including monomaterial and recycled content solutions
• New Health, Safety, and Environment (HSE) roadmap with focus on increasing HSE culture and introducing best industry practices

Our strategy

Market positioning

Our objective is to strengthen our position as a global market leader in converted, aluminium-based flexible packaging and barrier solutions, with a focus on fast-growing end markets such as Pharmaceutical, Pet food, Coffee and Tea and Other non-food. We plan to replicate our successful business model in new locations, while continuously improving our products, expanding our product portfolio and exploring opportunities for tapping into adjacent categories.

Sustainability

One of our main sustainability priorities is moving towards net zero scope 1–3 emissions. By enhancing energy efficiency while simultaneously reducing carbon emissions through structured projects, we are confident that we can make a meaningful impact. On top of this, by providing leading brands with more sustainable packaging solutions that have an increased recycled content and follow the concept of the three “Rs” – reduce, reuse and recycle – we hope to enhance our impact even further.

Innovator and solution provider

Our integrated value chain means that we are the development partner and solution provider of choice for many leading multinational brands. We develop smart packaging solutions in collaboration with our partners and suppliers to create durable packaging solutions for our end consumers.

Operational excellence

Using the best entrepreneurial minds and KPIs, we strive to set the industry benchmark for operational excellence by using state-of-the-art equipment in competitive production locations and investing in automation and digitalisation.

Strong organisational set-up

Attracting, retaining and developing talented employees is a fundamental part of our growth course. We strive to create a winning corporate culture in which every single one of our employees can thrive.

The company was listed publicly in order to expand its business through a combination of organic and inorganic investments, with proceeds used primarily to fund a tenfold increase in stand-up pouch capacity (equating to over 1 billion units produced p.a.), as well as to invest in machinery, equipment and infrastructure to meet increasing demand in fast-growing niches in defensive end markets and to pursue consolidation through selective acquisitions in new locations.

The aim of this public listing was to cement Aluflexpack’s position and presence as a leading provider of flexible packaging solutions. Today, Aluflexpack is one of the top three players in the field of converted, flexible aluminium-based flexible packaging in Europe and the MENA region.

Company information

Issuer

• Aluflexpack AG, Switzerland

Listing

• SIX Swiss Exchange

First day of trading

• 28 June 2019

Details of the capital increase

• Initial offering of primary shares: €130–150m (gross proceeds)
• Greenshoe of up to 15% (secondary shares)

Distribution

• Public offering in Switzerland
• International private placements to institutional investors outside the United States pursuant to Regulation S
• Offering to qualified institutional buyers in the United States pursuant to Rule 144A under the United States Securities Act of 1933

Use of proceeds

• Capital increase to fund the company’s growth through stand-up pouch business, improve efficiency and expand capacity in high-growth, high-value product groups, as well as targeted bolt-on mergers and acquisitions

Lock-up

• Company – 12 months
• Management – 12 months
• Existing shareholders 24 months

Syndicate

• Global Coordinator and Bookrunner: Berenberg
• Co-Lead Manager: Zürcher Kantonalbank

Over the last few years, Aluflexpack has consistently delivered above-average growth compared with the rest of the industry, increasing its net sales by more than 10% p.a. on average from 2016 to 2023. This growth has been driven by targeted initiatives and a selective mergers and acquisitions approach.

Over the medium term, Aluflexpack aims to maintain its growth trajectory and further strengthen its position as a global market leader in converted, flexible aluminium-based packaging and barrier solutions. The company’s strategy can be found here.

Targets by 2025

• Organic net sales of €450–500m
• EBITDA margin before special effects of 14–16%

Key figures for 2016–2023 and 2025 target

1. Organic net sales figures are in millions of euro.
2. Operating profit before interest, taxes, depreciation and amortisation adjusted for special items divided by organic net sales.

Company information

When was Aluflexpack founded?

Aluflexpack was founded in a garage in Zadar (Croatia) in 1982. After operating under the name of Folijaplast, the company was renamed Aluflexpack in 2001, to reflect its focus on flexible aluminium packaging. For more information, click here.

How many people does Aluflexpack employ?

As of 30 June 2024, Aluflexpack employed 1,604 employees in Austria, Croatia, France, Poland, Switzerland, Türkiye, Tunisia and USA.

Which products does Aluflexpack make?

Aluflexpack produces four main product types: films & foils, lids, containers and pouches. Its focus is on aluminium solutions, but it also selectively manufactures complex plastic and paper-based products.

In which end markets is Aluflexpack active?

As of 30 June 2024, Aluflexpack’s sales were divided among the following end markets, typically characterised by stable demand (the share of net sales is shown in brackets):

• Dairy (21%)
• Coffee and Tea (21%)
• Pet food (19%)
• Other food (15%)
• Pharmaceuticals (12%)
• Confectionery (11%)
• Other non-food (2%)

Where does Aluflexpack sell its products?

Aluflexpack sells its products to over 70 countries in Africa, Asia, Europe and North and South America.

How many customers does Aluflexpack have?

Aluflexpack has over 700 customers across the world, ranging from leading multinational brands to small regional companies.

How many factories does Aluflexpack have?

Aluflexpack operates eleven production facilities in seven countries: Croatia (four factories), France (one), Poland (one), Switzerland (one), Türkiye (two), Tunisia (one) and USA (one, expected start of production Q4 2024).

What does “3-WIN” stand for?

“3-WIN” is the name of Aluflexpack’s corporate strategy, which sets out targets for people, the planet and the profitability up to 2025. For further information, see slides 19–23 of Aluflexpack’s 2022 half-yearly results presentation. Aluflexpack has extended this strategy until 2030, see slide 17 of Aluflexpack’s 2024 half-yearly results presentation. 

What is Aluflexpack’s approach to mergers and acquisitions?

Aluflexpack’s targeted approach to mergers and acquisitions over the past few years has formed a key part of the company’s accelerated growth, with all acquisitions undertaken to date having expanded technological expertise, facilitated cross-selling opportunities and supply chain synergies and increased supply options for customers.

Overview of Aluflexpack’s acquisitions:

Aluflexpack intends to continue along its consolidation path in tandem with like-minded partners.

Shareholder information

Where are Aluflexpack’s shares listed?

Aluflexpack’s shares have been listed on the SIX Swiss Stock Exchange since June 2019.

What are Aluflexpack’s ticker symbol and ISIN numbers?

Aluflexpack’s ticker symbol is “AFP” and the ISIN is CH0453226893.

On 15 February 2024, after close of trading, Constantia Flexibles GmbH concluded a share purchase agreement with Montana Tech Components AG and Xoris GmbH under which the latter two agreed to sell 9’803’167 Aluflexpack shares held by them (corresponding to 56.67%) to Constantia. In parallel, Constantia launched a public tender offer for all remaining shares of Aluflexpack AG. The validly tender shares can be traded on a second trading line until closing of transaction. The ISIN number for the second trading line is CH1336609149. For detailed information on public tender offer read the Offer Prospectus (https://afp-tender-offer.com/).

How many outstanding shares are registered in Aluflexpack’s share register?

In total, there are 17,300,000 shares outstanding, all of which bearer shares.

Do members of Aluflexpack’s Management Board or Board of Directors hold shares in Aluflexpack?

Yes. As of 31 December 2023, members of Aluflexpack’s Management Board held 0.4% of the total number of shares outstanding, while members of the Board of Directors held 3.1% of the total number of shares outstanding.

What is Aluflexpack’s dividend policy?

So far, all of the cash generated by Aluflexpack has been put towards the Group’s growth projects, which is believed to create the most value for shareholders.

Who is Aluflexpack biggest shareholder?

Aluflexpack’s biggest shareholder as of 31 December 2023 is industrial holding company Montana Tech Components, which owns 53.6% of the total shares outstanding. Up-to-date information on Aluflexpack’s shareholder structure can be found here.

Does Aluflexpack impose trading restrictions on its employees?

Aluflexpack requires all employees and corporate representatives to abide by its blackout period policy, during which they are prohibited from trading company stocks. The first (regular) blackout period commences on 31 December of each year and ends with the publication of Aluflexpack’s annual report on the company’s website.

The second (regular) blackout period commences on 30 June of each year and ends with the publication of the half-yearly report. For further information on trading restrictions, see pages 93–94 of the 2023 annual report.

Financial information

What is Aluflexpack’s financial year?

Aluflexpack’s financial year is the calendar year, i.e. 1 January to 31 December.

When does Aluflexpack publish its financial results?

The publication of financial results varies from year to year. Further information on upcoming publications can be found here.

What is Aluflexpack’s outlook for the 2024 financial year?

Aluflexpack anticipates net sales excluding effects from IAS 29 (hyperinflationary accounting) in the range of €370-410m and EBITDA before SE in the range of €51-56m for the 2024 financial year. In addition, the Group will be focusing more on deleveraging and generating free cash flow.

Does Aluflexpack have any mid- or long-term financial targets?

As part of its “3-WIN 2025” strategy, Aluflexpack expects organic net sales of €450–500m and an EBITDA margin before special effects of 14–16% by 2025. Additionally, the company has extended its strategy to 2030 to ensure sustained growth in the evolving market landscape. The communicated financial targets to 2025 do not change.

Where can I find key financial information about Aluflexpack?

Key financial information and figures are available here.

Which brokers have research coverage of Aluflexpack?

Berenberg, Zürcher Kantonalbank and Jefferies. Further information on analysts and their recommendation can be found here. Aluflexpack is not responsible for the correctness of analyses and cannot be held liable for the financial outcome of investment decisions based thereon.

What is Aluflexpack’s current financial position?

As of 30 June 2024, Aluflexpack’s net debt-to-reported EBITDA ratio was slightly below 3.0x.

How does Aluflexpack determine the success of its capital use?

When assessing its organic and non-organic growth projects, Aluflexpack looks at the return on capital employed (ROCE) as a measure of effectiveness.

Corporate governance

Who are the members of the Board of Directors?

At the 2023 Annual General Meeting, all members of Aluflexpack’s Board of Directors were re-elected. As of 31 December 2023, the Board of Directors consisted of the following members (further information can be found here.):

• Martin Ohneberg (President of the Board of Directors and member of the Nomination and Remuneration and Audit and Compliance Committees)
• Bernd Winter (Chair of the Audit and Compliance Committee and member of the Nomination and Remuneration Committee)
• Christian Hosp (Chair of the Nomination and Remuneration Committee)
• Markus Vischer (Member of the Audit and Compliance Committee)
• Alois Bühler

Who are the members of the Management Board?

The Management Board consists of Johannes Steurer (CEO) and Lukas Kothbauer (CFO). Further information can be found here.

Does Aluflexpack have any share-based incentive schemes for members of the Management Board and Board of Directors?

Long-term incentives (cash and shares) are in place for members of the Management Board (see also pages 96–130 of the 2023 annual report), but there is no incentive scheme for members of the Board of Directors. In addition, other management members and some key employees of Aluflexpack are eligible to participate in a long-term phantom stock option plan.

Which auditing firm audits Aluflexpack’s annual financial statements?

The 2023 Annual General Meeting re-elected KPMG as the auditor for the 2023 financial year.

Where can I find Aluflexpack’s Articles of Association?

The Articles of Association can be found here.

Where can I see the voting results from the last Annual General Meeting?

The voting results from the last Annual General Meeting can be viewed here.

Sustainability

What action has Aluflexpack taken with regard to sustainability?

Sustainability is a key element of Aluflexpack’s strategy. Further information on how Aluflexpack incorporates aspects of sustainability into corporate life can be found here.

Does Aluflexpack have a code of ethics for its employees?

Yes. To view Aluflexpack’s code of ethics, click here.

What is Aluflexpack’s stance on equal opportunities in the workplace?

Aluflexpack has in place a non-discrimination policy in the workplace to ensure equal opportunities for all employees. For further information on Aluflexpack’s non-discrimination policy, click here. If you are interested in joining Aluflexpack, click here.

How recyclable are Aluflexpack’s products?

As of 31 December 2023, more than 85% of Aluflexpack’s portfolio has recyclable solutions, with the majoirty of its new product developments being recyclable. For more information on recyclability, read Aluflexpack’s 2023 sustainability report.

What is the advantage of aluminium-based packaging solutions?

Aluminium has the following advantages:

• Aluminium can be indefinitely recycled without losing its qualities
• Aluminium is durable, lightweight and thermo-efficient and has excellent barrier properties
• 75% of all aluminium that has ever been produced is still in use today
• Europe’s aluminium recycling infrastructure is already well developed, with 60% of aluminium packaging already recycled
• The aluminium recycling process uses 95% less energy than that for plastic