"We are confident in our strategy to achieve our growth and performance targets over the next five years,” said Austen. “Our strategy to accelerate growth, focus innovation, and continuously improve is reinforced by the changes we have made to how we execute – with focus, alignment, accountability, and rigor.”
Revenue GrowthManagement expects revenue to grow from $4.3 billion in 2014 to $5.8 billion in 2019, assuming constant currency. Revenue growth through 2019 is anticipated to be equally balanced between organic and inorganic growth.
“Market trends across the globe favor our sophisticated packaging solutions,” commented Austen. “Specifically, global trends include consumers’ focus on health and wellness, prioritization of sustainability, increasing access to healthcare, and product differentiation on the retail shelf, all of which create increased demand for our products. We are proactively responding to these trends with increased attention to the growth and success of our customers, along with a higher level of capital investment that is focused on growth and productivity projects.”
Increased Operating MarginsOperating margins are expected to increase in the U.S. Packaging segment from 13.1% in 2014 to the range of 15% to 18% in the next three to five years; margins are forecasted to increase in the Global Packaging segment from 7.6% in 2014 to greater than 10% in the next three to five years. Drivers of this improvement include increased sales of sophisticated, value-added products to meet global demand, productivity improvements, and the benefit of commercial decisions supported by enhanced data and analytics.
Michael B. Clauer, Bemis’ Vice President and Chief Financial Officer, commented, “We expect these margin targets to deliver earnings per share improvement of approximately 10 percent per year as we continue to execute our long-term strategy.”
Strong Operating Cash FlowOperating cash flow is forecasted to be approximately $550 million in 2019.
Commenting on the cash flow forecast, Clauer added, “We are confident that our targeted revenue growth, earnings improvement, and working capital discipline will deliver higher levels of operating cash flow in the future.”
RecapAusten summarized the Company's outlook and strategy review by saying, "We have a new perspective. As we move ahead, our focus is customer-centric; our resources are aligned toward improved performance metrics; and we have urgency, accountability, and rigor in all that we do." Austen continued, “I am proud to be leading a company with such a rich history and, more importantly, such potential to perform in the future.”