Our value creation model
Our distinctive model for superior value creation
SIG is an established player in an attractive industry in which long term growth is driven by an increasing global population, higher disposable income and demand for safe food. We are a leader in aseptic packaging solutions in carton, bag-in-box and spouted pouch.
Our proprietary aseptic packaging process allows beverages and liquid food to maintain their taste, appearance and nutritional qualities for up to 12 months without the use of refrigeration or preservatives.
Our packaging substrates are resource efficient with the lowest carbon footprint compared to competing substrates, while are filling machines and after-sales technical services enable our customers to run their operations smoothly and with a competitive total cost of operations.
We believe our razor/razor blade operating model leads to recurring revenue streams and, when combined with our innovation capabilities, allows the Group to generate superior returns for shareholders with above market growth and best-in-class profitability.
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Attractive industry and end-markets
Our end markets are characterized by the structural drivers to capture food and beverage growth.
Population growth: every year the global population increases by approximately 70 million people1. Rising disposable income: economic growth is leading to higher disposable incomes and a growing middle class in urban areas who demand packaged food. Consumers demand safe and hygienic food and beverages.
On top of the structural drivers, we consider four key consumer trends that shape the growth of the food and beverage market:
Healthy nutrition
There is increasing demand for healthier food and beverage products, for example products which are low in sugar, high in vitamins, high in protein or plant based. SIG’s unique filling capabilities including our drinksplus technology allow us to partner with our customers to identify and launch new products that expand the customers core portfolio e.g. protein drinks, drinking yoghurts.
Affordability
By using our filling flexibility to change packaging sizes we can offer our customers growth opportunities in smaller pack sizes and entry level products to offer consumers affordable products.
Sustainability
Sustainable packaging is key purpose at SIG. We believe in better. We are a leader in sustainability across all our substrates, We offer the lowest carbon packaging options on the market – all of them ready to be filled on our installed filling machine base worldwide.
Convenience
Growth in out-of-home dining whether for food service or on-the-go consumption is an exciting opportunity for customers to expand their offering through new channels to market.
Established platform
For many decades we have been combining our innovative packaging materials, aseptic filling technology, versatile packaging solutions, technical and digital services and strong global R&D network, to create one of the few true aseptic system suppliers in the world.
- By creating our systems with a TCO-mindset, our solutions offer best-in-class economics
- We offer a unique packaging solutions portfolio providing filling machines and associated packaging materials for carton, bag-in-box and spouted pouch packaging. This portfolio enables our customers to broaden their core offering and enter new categories and channels
- We are pioneers in sustainable packaging. That includes sourcing of certified raw materials, using renewable energy in our processes, and achieving numerous industry firsts with our packaging innovations including alu-free aseptic cartons. Our alu-free aseptic cartons have a carbon footprint that is approximately 25% lower than our standard carton (which are already best in class).
- Our in-depth commercial excellence framework allows us to understand customer demand and rigorously apply value-based solution selling, pricing, and deal structuring
Developments in 2024
- Placed 75 aseptic carton filling machines
- Sold 30.4 billion liters of food packed
- Used our volume flexibility to offer customers entry level products in markets with soft demand
- Commenced production at our new chilled plant in China
- Completed construction of our new aseptic sleeves plant in India
- Addressed production challenges in the bag-in-box operations in North America
Industry-leading innovations
For decades, we have led the food and beverage packaging industry through groundbreaking innovations, driven by our in-depth R&D capabilities and a track record of industry firsts. Our aim is to redefine the boundaries of packaging solutions, so that they are not only cutting-edge but also ahead of the evolving demands of the market.
Aseptic technology is at the core of our innovation, where we continuously aim to set new performance benchmarks for the highest levels of hygiene and product safety. Our focus on Total Cost of Ownership (TCO) and filling capabilities enables our customers to fill a variety of products with leading operational efficiency.
Innovation stems from deep consumer insights, rigorous testing, and continuous refinement. At SIG, we embrace a consumer-centric approach—discovering needs, generating ideas, testing concepts, and refining solutions until a breakthrough emerges that genuinely addresses customer and consumer demands.
Material science is key to creating differentiated and sustainable packaging. We develop next-generation materials that enhance recyclability, lower carbon footprints, and maximize renewability—ensuring our packaging solutions contribute more to people and the planet than they take from it.
Developments in 2024
Aseptic technology
Commercial validation of the second-generation spouted pouch filling machine featuring new aseptic technology
Filling capabilities
Introduction of speed-up kits for single-serve aseptic carton filling machines, enabling a 10% increase in output for existing installations. Over the year, we successfully upgraded 10 lines across India. With their compact design, these kits ensure a minimal facility footprint, an ideal solution for producers looking to scale operations efficiently without substantial infrastructure investments. This innovation reinforces SIG’s position as a leader in the aseptic packaging sector, where speed, efficiency, and flexibility seamlessly converge to deliver exceptional value.
Expansion of the SIG Neo filling machine portfolio to include standard one-liter carton shapes. The SIG Neo Slimline 15 Aseptic can fill up to 15,000 SIG SlimlineBloc packs per hour – a 25% increase in output compared to SIG’s standard filling machines for family-sized formats.
Packaging differentiation
Global roll-out of our on-the-go carton bottle SIG DomeMini. The small-size carton pack offers all the convenience of a plastic bottle and the sustainability benefits of a carton pack.
See our video: SIG DomeMini – SIG – for better
Material science and sustainability
Launch of SIG Terra Alu-free + full barrier
SIG Terra Alu-free Full barrier further extends SIG’s lower-carbon packaging materials without aluminum layer for wider use with oxygen-sensitive products such as fruit juices, nectars, flavored milk and plant-based beverages. This provides better access to healthy nutrition and reduces food waste, even in countries with complex supply chains.
See our video: SIG alu free full barrier
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Strategic priorities
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Our Corporate Compass
SIG is working in partnership with its customers to bring food products to consumers around the world in a safe, sustainable and affordable way. That’s our role for people and society; that’s our purpose as a company.
We want to fulfill our role for ever more people, following our dream to see every consumer in the world with an SIG packed product in their hand and a smile on their face, every single day.
For better, our dream and our purpose are at the heart of our Corporate Compass – a strategy made for growth. Founded on three clear principles – Think customer, Take ownership, Shape the future -, our compass guides the choices we make every day. The choices for our people who always strive for better. For our customers who can expect packaging solutions for better, every time. For more growth to come closer to our dream and to create sustainable value for our stakeholders. For creating food packaging that makes the world a better place.
Our Strategic Priorities
Sustainability
Strategic priorities:
- Forest+
Creating more thriving forests. - Climate+
Removing more carbon than we emit. - Resource+
Accelerating innovation on circularity. - Food+
Improving access to nutrition & cutting food waste.
Our progress:
Total Scope 1 and 2 greenhouse gas emissions for our production (thousand tonnes CO2 equivalent)
1All Scope 1, 2, and 3: Retrospective adjustment of emission factors 2020-2023.
Growth
Strategic priorities:
- Grow our core business by increasing market share in established markets and categories.
- Win new customers by bringing choice, differentiation and added value through our unique packaging systems in chilled and aseptic carton, bag-in-box and spouted pouch.
- Enter new and emerging categories with our innovative and sustainable packaging solutions.
- Leverage the environmental benefits of the beverage carton, bag-in-box and spouted pouch and SIG’s innovative edge in sustainability.
Our progress:
Aseptic carton filling machine placements
People
Strategic priorities:
- Shape a culture of diversity, equity and inclusion.
- Continuously increase employee engagement.
- Foster health and safety.
- Attract and develop talent.
Our progress:
Percentage of women in leadership positions
Customer
Strategic priorities:
- Position SIG as the industry’s innovation and sustainability leader and win business from new and existing customers with our innovation portfolio.
- Continuously improve customer experience through operational excellence by rigorously executing the SIG Excellence System (SES)
- Consistently apply our solution-selling approach to create added value for customers.
Our progress:
Net Promoter Score (NPS1) – Delta to competition2
1NPS is calculated by asking customers: “How likely are you to recommend our product/service to a colleague or business partner?” on a scale of 0 to 10. Based on their responses, customers are categorized into three groups: Promoters (9–10), Passives (7–8), Detractors (0–6). The score ranges from –100 to +100.
2SIG NPS minus NPS of next best alternative at a customer.
3After an all-time high NPS result in 2023, the 2024 result set a new baseline after the full integration of bag-in-box and spouted pouch customer portfolio into the NPS survey. It was further impacted by global supply chain challenges (operational challenges bag-in-box North America, Red Sea shipping crises).
Industry-leading innovations
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Adjusted EBITDA margin
24.6%
2023: 24.9%
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Free cash flow
€290m
2023: €219m
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Net debt to adjusted EBITDA December 31, 2024
2.6x
December 31, 2023: 2.7x
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ROCE1
26.6%
2023: 27.3%
1Based on standard 30% tax rate.
We have a multi-faceted growth strategy which aims to deliver above market growth and best in-class profitability.
The strategy builds on our strong technology platform and commercial footprint, and the attractive endmarkets in which we operate.
We have a well invested asset base with 26 production locations around the world. The majority of which are in low-cost countries and well positioned to service high growth markets. We manage our production network to deliver the lowest cost to serve our customers.
Our strategy is anchored by a strong focus on sustainability across all packaging substrates, ensuring that we deliver superior value to our customers, consumers, and the environment.
Progress in 2024
In 2024, Group revenue increased by 4.3% on a constant currency basis and by 3.9% on a constant currency and constant resin basis. The adjusted EBITDA margin for 2024 was 24.6% (2023: 24.9%).
Free cash flow was €290 million, 32% ahead of 2023 primarily due to lower capital expenditure after a high level of investment in the prior year.
Net leverage slightly reduced to 2.6 times as of December 31, 2024 (December 31, 2023: 2.7x). Given strong fundamentals of our business, we are proposing to increase the dividend to CHF 0.49 per share, compared with CHF 0.48 per share in 2023.
The Group achieved a record Ecovadis score in 2024 and our status as among the top 1% of all companies assed was confirmed by Ecovadis.