VPK Group delivered solid performance in 2023. Thanks to our integrated business model, diverse product portfolio and strong customer base, we adapted agilely to market dynamics and strategically invested in projects to support future growth.
Responding to market changes
In 2023, VPK Group successfully adapted to a dynamic market environment. As consumer spending adjusted and demand for corrugated packaging decreased after the strong Covid years, we strategically managed our investments. Volumes reduced by 4%, in line with broader market trends. Combined with lower energy prices, this resulted in lower paper prices, while inflationary costs increased. Thanks to our strategic investments, VPK Group maintained its strong position and demonstrated resilience in a changing landscape.
Strategic acquisitions
VPK Group strengthened its position with several strategic acquisitions in 2023. In the corrugated packaging segment, we entered the Italian market for the first time with a majority stake in Zetacarton, a producer of niche products such as fanfold and big-box packaging. Additionally, VPK acquired a stake in Ribble, the UK market leader in fanfold products. These initiatives further expand our geographical coverage of the fit2size® product range. Our tubes and cores division, Corex, expanded its network with the acquisition of Arteche Paper in Portugal and Spain, further strengthening our capacity and market position. In January 2024, we announced a joint venture with IEMME srl, an Italian corrugated board company, further strengthening our presence in Italy.
Successful start-up of paper machine in Alizay
With the conversion of our industrial site in Alizay into a hub for sustainable development, we remain committed to innovative and protective customised e-commerce packaging. The converted paper machine was successfully started up, adding an additional annual production capacity of 550,000 tonnes of recycled paper for corrugated board. The Alizay hub realises a strong circular concept, utilizing recovered paper transported from Paris via river, thus minimising CO2 emissions. A biomass boiler and water treatment plant generate green energy that is used during the paper production process. Thanks to VPK's integrated model, Alizay's additional paper production will find outlets at VPK's packaging processing sites in Fran
Financial results 2023
In 2023, VPK Group achieved annual sales of 1.8 billion euros, a 15% decrease due to reduced consumer spending and containerboard price reductions. Operating cash flow (EBITDA) reached 265 million euros. We invested 122 million euros in key sustainability initiatives, the completion of the conversion of the Normandy paper mill and the launch of the fanfold corrugated cardboard segment. Despite volatile market conditions, we successfully integrated several new businesses.
Looking to the future: growth and sustainability
VPK Group continues to focus on sustainable growth and strengthening our market position. The renewability and recyclability of paper make our products appealing to packaging consumers. We continue our energy transition by switching to biomass, cogeneration and efficient use of recovered heat. Our performance and growth are driven by our motivated teams, thoughtful investments, vertical integration and diversification in product offerings. With a strong focus on productivity, efficiency and customer focus, we are well-equipped to deliver high-quality, innovative services to our customers. VPK Group is ready to face future challenges and achieve further sustainable growth.
