Cabka H1 2025: Shift Program Drives Efficiency Gains Amid Modest Sales Decline

Cabka N.V. reported first-half 2025 results that were broadly in line with expectations, with efficiency improvements and disciplined capital spending offsetting a slight dip in revenue. Management reaffirmed full-year guidance, citing a stronger order book and continued momentum in the US market.

Revenue Performance, Margins, and Cost Savings

For the six months ended 30 June 2025, Cabka posted sales of €90.0 million, down 2% year-on-year. European revenue fell 8% to €57.7 million amid geopolitical uncertainty and reduced investment from smaller portfolio customers, though contract manufacturing surged 24%. US sales rose 9% to €12.0 million, supported by a refreshed commercial strategy, pricing investments, and stronger capacity utilization in contract manufacturing. The ECO business grew 7% to €14.2 million.

Gross operating margin improved to 51.7%, up more than 200 basis points from H1 2024, driven by the company’s Shift program. The initiative delivered €5.8 million in inventory reductions, tighter cost control, and operational efficiencies. While operational EBITDA declined 13% to €9.1 million—largely due to the intentional inventory drawdown—cost savings helped preserve profitability.

Operating expenses fell by €0.5 million, with personnel costs down €1.1 million, including lower temporary labor use. Some gains were offset by inflationary pressures and the absence of a one-off accrual release that benefited 2024 results. Depreciation and amortization held steady at €9.7 million.

Cash Flow and Balance Sheet

Cash from operating activities swung to a €0.2 million inflow, a marked improvement from the €4.4 million outflow a year earlier. The shift was driven by favorable working capital movements, especially inventory reductions, though partially offset by lower trade payables and higher receivables.

CAPEX dropped 42% year-on-year to €5.4 million, evenly split between replacement/maintenance and expansion/automation projects. Proceeds from asset disposals totaled €4.0 million. Gross debt decreased slightly to €75.3 million, with a €3.0 million cash balance at period end.

Net working capital stood at €28.6 million, representing 15.7% of sales—well within Cabka’s medium-term target range and down 26% from H1 2024.

Strategic Outlook

CEO Alexander Masharov highlighted progress on the turnaround strategy launched in late 2024. “Our Shift program is now delivering measurable impact, with a leaner cost base, material capex reduction, increased site efficiencies, and improved cash from operations,” he said. While overall sales were down, Masharov noted “early signs of improved commercial momentum” and a strengthening order book for H2.

Cabka expects 2025 sales and EBITDA to be at least in line with 2024. A Capital Markets Day in November will outline the company’s updated strategic roadmap and medium-term goals.

Cabka maintained its commitment to circularity, with 87% of raw material intake from recycled sources in H1 2025. The company increased renewable energy use, accelerated digitalization for operational efficiency, and advanced its social responsibility agenda.

In June, Cabka earned the Platinum Medal from EcoVadis, improving its score from 72 to 82 and placing it in the top 1% of rated companies worldwide. The company continues to monitor EU sustainability regulations, including potential amendments under the Omnibus Simplification Proposal, while aligning its reporting with CSRD and EU Taxonomy requirements.Cabka’s mid-year risk review confirmed a broadly stable profile, with the risk of losing key customers downgraded from high to low priority thanks to successful mitigation measures.

The syndicated bank loan remains classified as current, as Cabka had not met certain covenants at 30 June 2025, though a waiver was secured for the period. Discussions with lenders to adjust covenant levels for at least the next 12 months are expected to conclude by the end of August.

Overall, Cabka’s H1 2025 results show that while revenue growth remains a challenge in certain markets, its operational discipline, cost savings, and progress in the US are providing a stable foundation for the second half of the year.

Source: Cabka

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Rick LeBlanc

Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.