Bong envelopes has seen an increase in its operating profit following a major restructure. The 50% rise in the company’s adjusted operating profit comes despite a decline in the European envelope market of around 8% in 2015.
“Bong has during the last year completely restructured the company and reduced the number of sites and personnel drastically in order to have a more lean and effective organization to be competitive in the tough envelope market. The rapid increase in paper prices from suppliers during the last year has successfully been passed on to the market to restore our margins. The turnaround is already seen in the figures and our goal to make profit on bottom line for 2016 is still valid”, said Bong’s CEO Stéphane Hamelin.
Bong is a leading supplier of specialised packaging and envelope products in Europe. Its brands include; Basildon Bond, New Guardian, Plus Fabric, DuPont™ Tyvek and Securitex. Annual sales are approximately SEK 2.3 billion (Swedish Krona) and the company has over 1,600 employees in 16 countries.
During 2015, Bong reduced its workforce by 10% after reporting a net loss of SEK64 million. In December 2015, Bong confirmed it had been successful in raising SEK 200million in secured bonds, primarily from Swedish investors.
Max Polsten: Bong Envelopes Award Winning Packaging for E-Commerce
Bong is confident that 2016 will bring new opportunities. Future growth areas for the company include packaging for retail and e-commerce and the envelope market within Eastern Europe. Its latest e-commerce packaging solution, “Max Posten” has already won the Scanstar award and Worldstar award.
Max Polsten was developed for parcels up to 2kg in weight specifically for the Norwegian postal market. The unique packaging can be used and re-used up to three times without using any tape, glue or any other adhesive material. With an expanding e-commerce market all over the world, the potential for further growth is very promising.