Amsterdam, August 2023 – Cabka N.V., a prominent player in converting difficult-to-recycle plastic waste into innovative Reusable Transport Packaging (RTP), released its non-audited results for the first half of 2023 today.
In the first six months leading up to June 30, 2023, Cabka reported sales of € 104.3 million, marking a 2% Year-on-Year growth. Notably, the company’s gross profit surged to € 50.8 million from € 47.3 million in the previous year, reflecting an improved margin of 49%. In the same period last year, the margin stood at 46%.
In terms of EBITDA from operations, the company recorded € 13.4 million, a slight uptick from € 13.1 million in 2022, maintaining the rate at 13%. Net income from operations also witnessed recovery, climbing to € 3.0 million from a modest € 0.7 million in 2022. The company’s net result stood at € 0.8 million, bouncing back from a net loss experienced in 2022 due largely to the costs associated with its Initial Public Offering (IPO).
Furthermore, Cabka reported earnings per share at € 0.03, up by € 0.11 from the corresponding period in 2022. While the Net Working Capital remained consistent at € 37.0 million, or 18% of sales, CAPEX mirrored the previous year’s figures at € 13.0 million. It’s noteworthy that the company used recycled material for 88% of its products, a striking contrast to the European average of 14%.
A significant development on the operational front was the return of Cabka North America to full production by the end of June. This follows the devastating flash flood that hit its St. Louis operation a year prior.
Cabka Customized Solutions Up 40%
Tim Litjens, the CEO of Cabka, commented on the results, stating, “Despite facing challenges in the first half of 2023, we’ve seen positive progress. Customized Solutions showed an impressive growth of 40%, mainly fueled by a surge in the US market, courtesy of Target.” He added, “Our Portfolio business in the EU also showcased a steady 11% growth compared to the same period in 2022, although this was somewhat offset by a 20% decline in our Contract Manufacturing business.”
Reflecting on the challenges from the flood, Litjens said, “Recovery was completed as planned. Last month, we celebrated the reopening of the US plant. This shows the resilience and dedication of our team. We’ve now returned to full in-house production as of the end of June.”
Litjens also touched upon the volatility challenges in material and energy pricing they faced over the past year. He mentioned, “Markets have reached similar pricing levels as before the start of the war in Ukraine, bringing less uncertainty around our input costs. Our EBITDA has shown significant improvement from the challenging second half of 2022.”
Despite the ups and downs, the CEO remains hopeful. “The current economic uncertainty does present challenges, especially concerning sales for the year,” he acknowledged. “However, as we navigate these economic uncertainties, we remain cautiously optimistic and stand by our outlook of 13 -15% EBITDA margin for 2023.”
In a recent corporate reshuffling, Frank Roerink was appointed as the CFO during the June 8 Annual General Meeting.