Global packaging company Elopak presented its revised corporate strategy, entitled ‘Repackaging tomorrow’, during the company’s capital markets day in Oslo. The strategy sets out plans for Elopak to approximately double its revenue to EUR 2 billion by 2030.

“Elopak will deliver above-market growth by realizing global growth opportunities, strengthening leadership in our core markets, and leveraging the plastic replacement shift, towards becoming a 2 EURbn company by 2030,” says Thomas Körmendi, chief executive officer of Elopak.

Since the company’s IPO in June 2021, Elopak has delivered on its financial targets and strategic priorities ahead of schedule. During the same period, the company has developed from being the world’s largest fresh liquid carton packaging company to a leader in fiber-based packaging. Now, it is time to refocus priorities and set new targets.

For the coming 3-5-year period, Elopak aims to deliver:

• 4-6 per cent annual organic revenue growth

• 15-17 per cent adjusted EBITDA margin

• Dividend distributions of 50-60 per cent of normalized net profit

• Leverage ratio of ~2.0x net debt / adjusted EBITDA

The company has defined three strategic priorities to accelerate sustainability-driven growth and strengthen its profitability.

1) Realize global growth:
In the US, Elopak has a new state-of-the-art production plant currently under construction. This plant in Little Rock, Arkansas has the potential to double revenues in the margin accretive North American market. In the Middle East and North Africa (MENA), Elopak aims to leverage its #1 position in the region’s fresh market to become the leading system supplier across multiple segments. In India, the world’s largest dairy market, Elopak aims to broaden its offering by expanding local production to include Pure-Pak® cartons, as well as the Roll Fed cartons currently available.

2) Strengthen leadership in core
Elopak will continue to strengthen its leading position in European markets as businesses and consumers accelerate their shift towards more sustainable packaging solutions. By leveraging its strong track record in sustainability and innovation, the company seeks net advantages from upcoming regulations and take a sustainability frontrunner position.

3) Leverage plastic replacement shift
Elopak will develop the current and next generations of its D-PAK™ carton to strengthen its position in the home and personal care segment. In addition, the company will explore opportunities for partnerships and acquisitions to further accelerate profitable growth in adjacent categories.

Introducing new people and planet targets
Elopak has defined new people and planet targets, which reaffirm the company’s strong safety and sustainability commitments. By 2030, 100 per cent of Elopak’s cartons will be designed for recycling. In parallel, Elopak will work to reduce its Scope 3 emissions by 25 per cent while doubling revenues, on its way to become a net zero company by 2050.

“As a market leader in fiber-based packaging, Elopak is well-positioned to benefit from increased regulations and growing sustainability awareness among customers and consumers. With our strong track record and innovation pipeline, our total product portfolio will be designed for recycling by 2030,” says Körmendi.