Anne Erkens restructures SIG into two divisions and targets aseptic carton margins above 20 percent

A simplified structure to drive profitability

SIG’s Capital Markets Day yesterday was far from a routine public relations exercise. Anne Erkens, CEO of the Swiss multinational, has taken a scalpel to the packaging giant's operational structure to simplify its business model and squeeze maximum profitability from its flagship division. The new strategic roadmap divides the company into just two core reporting segments: Aseptic Carton and Bag-in-Box & Spouted Pouch.

This reorganization aims to accelerate execution and increase accountability, but it comes with an immediate cost. The shift in reporting segments will trigger a non-cash impairment charge of approximately €250 million in the fourth quarter of 2026, impacting the Bag-in-Box and chilled carton businesses. It is a classic balance sheet cleanup designed to clear the runway for the newly announced mid-term targets.

Aggressive margins and a turnaround plan

Those targets are aggressive. Erkens has set a course for 3% to 5% organic revenue growth and an adjusted EBIT margin above 18% at the group level. However, the metric that truly matters to the industry is the specific target for aseptic carton: a margin exceeding 20%. SIG expects the underlying aseptic packaging market to grow by 2% to 3% over the medium term, and the company is confident it will continue to outpace this average, a feat it claims to have achieved in every macroeconomic cycle since 2016.

For the Bag-in-Box & Spouted Pouch division, the strategy is strictly a turnaround operation. Management has deployed a recovery plan focused on portfolio optimization, operational excellence, and a stronger pivot toward aseptic applications to restore the segment's profitability.

Strong Q3 results back the new roadmap

The credibility of this aggressive roadmap is bolstered by quarterly results that give the executive team significant breathing room. In the third quarter of 2026, SIG reported revenue growth of 7.2% at constant currency compared to the same period last year. The adjusted EBIT margin surged to 17.4%, a substantial improvement from the 14.8% recorded in 2025.

Backed by these figures, the company has raised its full-year 2026 adjusted EBIT margin guidance to a range of 16.0% to 16.5%. Furthermore, Erkens sent a clear signal of financial confidence by announcing the planned reinstatement of the dividend in 2027, targeting a payout ratio of 30% to 50% of adjusted net income. The strategy is now set; SIG must now prove that its operational machinery can sustain these profitability levels in a packaging market increasingly squeezed by costs and regulatory pressures.