Packaging Industry ‘Susceptible, But Not Immune’ To COVID-19 Disruptions: Moody’s
A new report by Moody’s has found that the packaging sector in Europe by and large has had low exposure to the COVID-19 pandemic, although some companies are more vulnerable than others.
According to the report, most the the aggregate revenue of the 15 European non-paper packaging companies that are rated by Moody’s is generated from the food, beverage and pharmaceutical end markets, which are ‘demonstrating resilience’ in the current pandemic situation.
However, it said that companies that produce packaging for the cosmetics industry or other ‘heavily-affected’ sectors, such as hospitality and travel, could ‘experience significant volume declines’ in these segments, while the prospect of a global recession could also weigh on these sectors.
Overall, Moody’s said that it expects a 5% decline in the aggregate EBITDA for the sector in 2020, but is expecting a ‘rebound’ next year.
ESM
Related news
Sustainable growth: global corrugated board market could rise to over $206 billion by 2032
The packaging industry is on the verge of a breakthrough:…
Read more >PM: Moody’s continues to recommend Hungary for investment
Moody’s continues to recommend Hungary for investment, but due to…
Read more >Mondi increases its presence in Western Europe via acquisition
Packaging firm Mondi has entered into an agreement to acquire…
Read more >Related news
Profitability of trade is decreasing – the government is opening up substantial resources
On May 28, Laurel Számítástechnikai Kft. held its 12th Retail…
Read more >The MVM Dome was filled with 5,500 beauty fans
The 4th Rossmann x Krémmánia Beauty Expo, held at the…
Read more >The III. REL Organizers’ Day ended successfully
Hungary is at the forefront of supporting short supply chains…
Read more >