Switzerland's SIG Group has reported growth in net income and revenue for the second quarter of the year. The company was able to offset cost inflation through higher prices, resulting in a net profit of €29.6 million ($32.8 million) compared to €13.5 million in the same period last year. Revenue also saw a significant increase, rising to €811 million from €645.9 million.
Strong Organic Revenue Growth
SIG Group experienced a 6.4% increase in organic revenue at constant currency. The company's fastest-growing region was Europe, with a notable 9.8% growth.
Positive Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)
Driven by price and mix benefits, SIG Group's EBITDA rose to €183.9 million from €95.4 million. These gains helped counterbalance inflationary effects.
Steady EBITDA Margin Growth
Despite the expected dilutive impact of acquisitions, SIG Group achieved a slight increase in its adjusted EBITDA margin, rising from 25.1% to 25.7%.
Confident Outlook for Future Growth
SIG Group maintains its growth expectations for 2023. The company anticipates a revenue increase of 20% to 22% at a constant exchange rate, with the adjusted EBITDA margin projected to grow between 50 and 150 basis points, reaching a range of 24% to 25%. However, the company acknowledges that improvements are subject to input cost and foreign currency volatility.
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