IVE Group has grown its packaging business with new client wins in the FMCG sector.
In the company’s half-year results presentation, IVE Group managing director Matt Aitken confirmed the recently acquired JacPak business has grown significantly and absorbed the additional capacity previously identified last year after winning new client accounts.
IVE acquired JacPak in October 2023 with expected annual revenue of around $45 million and $15 million of additional available revenue capacity which has been absorbed with recent contract wins for folding carton business.
“We have now committed all of the revenue that was available to us when we acquired that business just over 12 months ago,” Aitken said.
JacPak contributed $24 million of revenue during the six months to 31 December 2024 including $15.8 million of incremental business which Aitken said was in line with expectations.
Promised annual cost synergies of $2.4 million were realised by 30 June 2024 and contributed to earnings during the six month period.
In Victoria, JacPak (IVE Packaging) will continue to operate as a standalone business with annual revenue capacity of $60 million.
The new Sydney supersite, that is expected to open in March 2026, will house the next stage of expansion into the packaging category – known as Phase 1.
Aitken confirmed capital expenditure of $18 million to increase packaging capability relating to the Phase 1 expansion. This equipment includes the previously announced purchase of Koenig & Bauer presses. IVE also intends expanding its Sydney commercial printing site – with the addition of die cutting, folding and gluing equipment to also support folding carton packaging production.
“We have purchased a range of equipment to assist us with the build out of our organic expansion plans here in New South Wales,” Aitken said.
The standalone JacPak facility in Melbourne coupled with the Sydney supersite expansion will result in total packaging revenue capacity of around $90 million per annum by the end of 2026.
“The new Sydney supersite provides additional space to accommodate further expansion, particularly to facilitate Phase 1 and Phase 2 of the packaging strategy,” Aitken said.
For Phase 2, additional investment would add a further $60 million to capacity resulting in IVE achieving its stated ambition of generating annual packaging revenue of approximately $150 million within five years of the JacPak integration.
