Founded in 1888 in Verona, Italy, Fedrigoni Group is synonymous with excellence in the world of labels and self-adhesive materials, specialty papers for luxury packaging, RFID/NFC and connected solutions.
With more than 5,500 employees based across 28 countries and 73 facilities among production sites, slitting and distribution centers, the Group manufactures and distributes 25,000 products in 132 nations.
The Special Papers division includes the Cordenons Group, the historic Fabriano brand, Éclose, Guarro Casas, Papeterie Zuber Rieder, Arjowiggins China and Mohawk, while the Self-Adhesives division involves Arconvert, Manter, Ritrama, IP Venus, Acucote, Rimark, Divipa, Tageos, Unifol and SharpEnd. Also part of the Group is the U.S. distributor GPA.
In 2018, Fedrigoni Group saw the private equity firm Bain Capital become its majority shareholder, owning 90% of the company. The family retained a 10% stake, with the management team holding a minority interest.
Four years later, in 2022, BC Partners, another private equity fund, entered the picture, resulting in Bain Capital and BC Partners each owning 46% of the company. The management team holds the remaining share, while the family maintains its investment with a minority stake.
The quality and outstanding resiliency of Fedrigoni’s business model, underpinned by the experience, passion and dedication of its people, allowed the company to double its turnover in the last five years, totalling €1.8 billion in 2023, while its Ebitda tripled, achieving the €338 million mark with a margin of 18.7%.
As part of its long-term expansion efforts, the company’s strategy currently focuses on increasing market share in premium segments – as opposed to commodity or banknotes – through both organic growth and M&As.
Fedrigoni's entire strategy is permeated by ambitious goals and a constant commitment to sustainability, with one of the biggest challenges being the energy transition, where the Group aims to achieve carbon neutrality by 2050. The multinational company's approach, called 'Making Progress', provides a roadmap of targets to be achieved by 2030, tracking all progress in a rigorous, granular and transparent manner: from a 30% reduction in CO₂ emissions (a target approved by SBTI), to water consumption (which the Group aims to reduce by 10% in terms of water withdrawal, returning 95% of it clean to the environment), from waste management with a view to full circularity (zero waste sent to landfills), to a product range that includes 100% Aticelca-certified recyclable special papers and self-adhesive materials suitable for recycling or reuse that are Recyclass certified. In the social sphere, priority is given to injuries prevention (in 2023 at Group level, the injuries frequency index dropped by 17.7%, from 13.3 to 11), reducing the gender gap (to reach 35% of women in managerial positions) and promoting an inclusive and learning environment for the company's 5,500 people.
For the second year, the international agency Ecovadis has reconfirmed its Platinum Rating, which places Fedrigoni in the top 1% of companies in the same industry for ESG performance, also conferring further recognition with the certification of Leader in the Carbon Footprint category. In addition, Standard&Poor placed the Group in the Sustainability Yearbook 2024, which includes only 8% of the more than 9,400 companies assessed in the Corporate Sustainability Assessment 2023.
2023 FINANCIAL RESULTS
Fedrigoni ended 2023 with €1.8 billion in pro forma sales, down 10% from the €2 billion in 2022 calculated on the same perimeter, but with €338 million in pro forma EBITDA up 8% from €314 million a year earlier, increasing its EBITDA margin from 15.4% to 18.7% and proving once again its profitability and resilience.
The Group's business is increasingly global, with 21% of revenues coming from the Italian market, 49% from the rest of Europe and 30% from the rest of the world.
In Q1 2024[1], estimated revenues are €470 million, up 10.9% compared to Q4 2023 and 2.4% compared to Q1 2023. Estimated EBITDA is €81 million, up 5.7% from Q4 2023 and 16.9% from Q1 2023.
Results for the last 12 months (April 2023 to March 20241) were also positive, with estimated Revenues at €1.825 billion and estimated Pro Forma EBITDA at €356 million, up 5.3% from FY 2023. The estimated EBITDA margin stands at 19.5%.
Fedrigoni reconfirms its position as the world's leading player in wine labels and specialty papers for luxury packaging, the third in self-adhesive materials and RFID inlays manufacturing, and the second in art&drawing papers, also thanks to the 4 M&A deals concluded between the end of 2023 and early 2024.
CEO Marco Nespolo: “2023 was a year of great volatility, driven by the combination of geopolitical instability, overstocking in many value chains and an unfavorable macroeconomic environment. Nevertheless, we continued to gain market share in all sectors and geographies, closing the year with stable financial results, and once again demonstrated the resilience of our business model. Agile processes and a focus on innovation, sustainability, product excellence, customer proximity and the acquisition of new skills and technologies, supported by the experience and passion of our people, have enabled us to further strengthen our global leadership position”.
[1] Figures for Q1 2024 are preliminary, unaudited, and subject to change.
FEDRIGONI - STRATEGY FOR US MARKET
The ability to serve global markets with a localized approach is particularly appealing to brands in the luxury sector – who are increasingly favoring nearshoring and local sourcing in an effort to protect their businesses from potential supply chain disruptions, not to mention lower levels of environmental impact.
In order to better cater to the needs of clients – old and new – with presence in North America, Fedrigoni Special Papers has acquired certain assets of US-based company, Mohawk, further establishing the company’s global leadership in specialty papers for luxury packaging and reinforcing its presence in the United States.
Founded in 1931, Mohawk is a family-owned business that produces some of the best-known specialty papers for designers, brands and printers in North America. Throughout the years, it has established solid relationships with distributors across the nation, and, like Fedrigoni, it has consistently innovated in the field of digital printing and sustainability. Thanks to its acquisition, Fedrigoni is now able to manufacture and distribute a wide range of high value-added Fedrigoni papers in North America – accelerating its domestic penetration – and, conversely, expand Mohawk’s specialty papers internationally.
Mohawk’s acquisition marks the most recent addition to Fedrigoni's portfolio after 15 other mergers and acquisitions since 2018. The group’s ambition is to continue its expansion plans, particularly in North America and Asia. Target companies include those that will enable the group to expand its global footprint; increase production capacity in strategic niche segments; acquire new competences and technologies; and enhance its premium offering in market adjacencies that are complementary with its current product portfolio.
PRODUCTS AT LUXE PACK NYC
FEDRIGONI SPECIAL PAPERS - product news at Luxe Pack:
Mistral: the new range of special embossed papers bring a fresh elegance and originality thanks to its distinctive textures. Ideal for fine publishing, creative communication and luxury packaging projects, Mistral expands the range of embossed Fedrigoni Special Papers.
Imitlin: one of Fedrigoni's historical papers, today is renewed and becomes even more versatile. Refined, resistant to scratches, fingerprints and light: elegance and strength without sacrificing performance. Today it is available in new colors, embossing and finishes for luxury packaging and publishing.
Symbol Card & Pack: a complete and versatile range of papers for luxury packaging and publishing, designed for the most varied creative solutions. The aim of the new collection is to offer the market cross-sector solutions for the entire packaging and publishing sector, proposing a complete and versatile offer to the most demanding customers.
MOHAWK - product news at Luxe Pack:
Superfine Folding Board: debuted by the North American team. Mohawk is excited to announce the expansion of Mohawk Superfine, Mohawk's flagship grade for more than 70 years, now includes 16 new folding board items engineered to be scored and folded to create sophisticated and beautiful packaging.
The Perfect Match: is the newest promotion created by the North American team to inspire creative print. The Perfect Match demonstrates how the use of color and textured paper can elevate print from good to truly great. It will be previewed at LUXE PACK, with an official launch planned in June.
www.fedrigoni.com
