Alpla reports strong growth in Africa with €4.7B turnover amid material and cost reductions
16 Jan 2024 --- Alpla reports that it closed the financial year in 2023 with a turnover of €4.7 billion (US$5.1 billion) as it expanded its pharmaceutical products and recycling capacities.
Lower material and energy costs paired with exchange rate factors resulted in a moderate drop in turnover compared to the previous year, while value-added remained stable.
There was strong growth in Africa, while demand was weaker in North and Central America and China. Alpla says it is on track to use 25% recycled materials in its products.
“The year of high costs was followed in 2023 by a year of mixed demand and fluctuation industry-wide. We nevertheless generated stable value-added, invested extensively, developed innovative products, and built up our capacities, laying the foundations for long-term growth,” CEO Philipp Lehner emphasizes.
Alpla also invested in new production plants worldwide, recycling facilities, technologies and strategic acquisitions. The company continued its further development and laid the foundations for the future.
Alpla is on track to achieve its target of using 25% recycled materials in its products.Annual turnover fell by around 8% year-on-year, from €5.1 billion (US$5.5 billion) in the previous year to €4.7 billion (US$5.1 billion). This moderate decline reflects the industry-wide normalization of material costs and corrects the high level seen in 2022, according to the company.
At the same time, exchange rate factors took effect.
African and pharma ascension
While Alpla expanded in the growth markets of Africa and Asia, demand stagnated in North and Central America and China. The company increased its presence in the pharmaceutical, recycling and industrial sectors in Europe.
Alpla tapped new markets in Africa and increased its market presence with new builds and capacity expansions. The company entered Morocco and began constructing a state-of-the-art recycling facility in South Africa in 2023.
In addition to the AMET region (Africa, Middle East and Turkey), Asia and North America are further growth markets, says the company. Alpla plans to focus on investments in these regions as well as in the areas of injection molding and recycling.
The development and production of pharmaceutical packaging via the Alpla pharma brand was intensified in 2023 based on the joint venture with Inden Pharma and capacity expansions in Europe. This line of business is to grow further this year, too. Large-volume containers for industrial applications have been sold via the new Alpla industrial brand since 2023.
With its entry into the pump market, Alpla expanded its portfolio as a system provider last year. As the new majority shareholder of the Danish company Paboco, the packaging specialist is also expediting the roll-out of fully recyclable paper bottles.
Sights set on recycling target
Alpla is on track in the area of recycling despite a slight drop in demand in 2023: at least 25% recycled material is to be used in its packaging by 2025. This figure is currently at around 20%.
To cover its resource needs, Alpla is focusing on high-quality recycled PET and HDPE produced in-house. More than €50 million (US$54 million) are invested annually in new facilities, production lines and technologies. The installed and projected output capacity was increased to 350,000 tons in 2023 — already twice as much as in 2021.
The company emphasizes the increasing significance of this line of business in 2023 by establishing the brand Alpla recycling, and that further investments will follow in 2024.
“The sharp increase in demand for recycled HDPE confirms our strategy. We serve global customers as a strong partner, offering them high-quality solutions around the world,” says the company.
Edited by Louis Gore-Langton
