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
Mondi increases its presence in Western Europe via acquisition
Packaging firm Mondi has entered into an agreement to acquire…
Read more >Hybrid working is not good for the office market
The effects of the pandemic can still be felt in…
Read more >DS Smith invests EUR 13m in its Austrian factories
Packaging company DS Smith is investing EUR 13m in its…
Read more >Related news
Using 30% less materials would be a solution to the climate crisis
The circular economy is a global imperative: it transcends geographical…
Read more >The Hégető Honorka Awards were presented for the twentieth time
This year, the Honorka Hégető Awards were presented for the…
Read more >The World Science Forum starts in Budapest today
The World Science Forum (WSF) begins today in Budapest, with…
Read more >