Impairments drive net loss for SIG despite stable revenue
Packaging group SIG has posted a net loss of €87m ($101.2m) in 2025, marking a reversal from the €194.5m profit recorded in the prior year.
The downturn was primarily driven by €351m in non-recurring charges stemming from a strategic review and challenging market conditions.
Excluding these charges, net profit reached €208.3m.
Around €107m of the impairments were related to bag-in-box and spouted pouch operations while €86m was for chilled carton assets, largely due to weak demand in China.
The company also booked €82m for market and capacity rationalisation in aseptic cartons and €62m for innovation-related write-downs, including filling lines and development costs.
SIG’s adjusted net income declined 25% year-on-year to €231.1m.
When excluding non-recurring charges, adjusted net income stood at €285.3m, which is €22.8m lower than the previous year.
The company cited a drop in adjusted EBITDA and increased depreciation as reasons for the reduction, although this was partly offset by reduced tax and finance expenses.
Total revenue stood at €3.25bn, showing a 0.4% growth at constant currency but down 2.4% on a reported basis.
In Europe, revenue decreased by 0.8% on a constant currency basis.
The company noted that raw milk shortages for aseptic processing contributed to the slowdown, particularly midway through the year.
For India, the Middle East and Africa (IMEA), revenue growth was 0.4%.
In the Asia Pacific, revenue dropped by 1.7%, with SIG attributing this to persistent market softness and intensified competition in chilled cartons.
The Americas market saw revenue rise by 4.4% on a constant currency basis.
Growth was primarily supported by higher sales of liquid dairy products in Mexico and price adjustments in Brazil.
Carton business revenue fell to $2.69bn from $2.75bn, while revenue from bag-in-box and spouted pouch lines declined to $551m from $579.6m.
Fourth-quarter (Q4) net income decreased to $43.8m from $64.4m in the prior year.
Revenue for Q4 2025 was $901.2m compared to $930.7m in the same quarter last year.
The board has decided to suspend dividend payments for the fiscal year ending 31 December 2025.
Looking forward, SIG expects total revenue growth of between 0% and 2% at constant currency and resin for 2026.
SIG CFO Anne Erkens said: “In 2025, SIG operated in a challenging economic environment, particularly on the consumer side, resulting in more volatile demand. In response, we took decisive action to sharpen our strategic focus.
"Following an in-depth strategy review, we defined a clear roadmap to improve business performance, focusing on portfolio optimisation, operational improvement and a more rigorous approach to capital discipline.
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