In the News: Group CEO interview for Greek financial portal ot.gr

Frigoglass Group: Turns the page with strong focus on growth – Seeks opportunities in the US and Asia.

The new Frigoglass Group CEO Serge Joris discusses with OT the Group’s strategic growth plan | Where is the sales bar set | Which market categories are being "courted"

As of March 2023, Frigoglass Group is attempting a dynamic restart, building on its rich "legacy" and leading presence in the industry. This transformation followed a complex capital restructuring process, in which the old shareholders left and a new business entity with new shareholders was created.

The bar is set quite high. The Group’s new Management Team targets EUR 447 million in sales and EUR 62 million EBITDA for 2026, up from EUR 336 million sales and EUR 21 million EBITDA, respectively, this year.

Frigoglass Group and the EUR 447 million target

What are the biggest challenges the company faces in this endeavor? What will be the next steps growth-wise? What new opportunities can Frigoglass "unlock"?

"OT" met with Frigoglass Group’s new CEO, Serge Joris, at the company's offices to record the multinational company’s plans and growth strategy. Mr. Joris is an executive with significant experience in senior management positions in major companies across Europe, Asia and the US.

The challenge of Nigeria

One of the biggest challenges that Mr. Joris, originally from Antwerp, Belgium, has had to manage is the glass packaging business vertical that Frigoglass Group operates in Nigeria, where it has a strong presence through its Beta Glass subsidiary.

The challenge—as Serge Joris highlights in his first interview to Greek media since assuming the Group CEO position last February—is associated with the country’s highly volatile macroeconomic environment, dominated by high inflation and the devaluation of the Naira, Nigeria’s national currency.

Adjusting pricing policy in such an environment and trying to convince customers that accepting changes in contracts was in the best interest of all parties, he notes, was an extremely painstaking process.

In parallel, the company has also replaced the Management of its Nigerian subsidiary, by appointing a new CEO, a new CFO, and replacing a total of five members of the Beta Glass Board of Directors.

"Restart by leveraging opportunities"

According to Mr. Joris, the focus now is on accelerating growth and increasing turnover. Having been actively involved in several restructuring projects, the Belgian manager points out that a single-minded commitment to cutbacks can backfire, as there is a risk of the business being dragged into a downward spiral – with potentially negative consequences for the entire organization.

"You have to be careful and look at the possibilities for exiting the crisis beyond the cuts," he says. "The other aspect of the change and transformation we are attempting is growth. So, before profit, we are looking to increase turnover," he stresses.

Savings are now focused beyond the Group’s internal structure. As, for example, on the procurement of raw materials and components necessary to manufacture the company's products.

"We are seeking new suppliers in China and Turkey and pursuing growth opportunities in Egypt, North Africa, India and Southeast Asia," he notes.

Frigoglass Group has been moving towards this direction for the past 18 months.

Glass exports across the African continent

He cites the case of Beta Glass as an example. Operating out of Nigeria, Beta Glass has increased exports to new regions in Africa, such as Ghana and Burkina Faso. As a result these exports now account for 20% of the company's total turnover, compared to just 3% until a few months ago.

Similar expansion opportunities are being explored for the commercial coolers business vertical, a sector where Frigoglass is a true global leader.

Mr. Joris shares that the company is considering entering the North African and Asian markets, being in the process of finalizing the optimal product proposition.

Expansion to the US from 2025

Becoming operative in the US market is high on the Frigoglass Group agenda. According to Mr. Joris, the company is already in exploratory contact with potential partners to undertake product distribution in America.

The business plan envisages that this significant step will be taken in 2025, while the Frigoglass Group CEO also revealed that a major distributor has expressed interest in a partnership.

Mr. Joris considers expansion across the Atlantic a logical development, elaborating on the multiple opportunities that the extensive local market presents, given the Group's global footprint and its collaboration with large multinationals from the beverage industry.

"I know the US market well, and if you have the right product at the right value, then you have a significant chance of success," he says.

"If the Chinese can do it, we certainly can too..."

According to Mr. Joris, most commercial coolers are currently imported to the US from China and manufacturers "that are located miles and miles away. So, if they can do it, why can't we, given we’re much closer?" the Frigoglass executive points out.

That said, Serge Joris does not rule out the possibility of establishing a factory in the US. This development, however, will be considered after the company has reached its critical sales volume in the market.

The promising "white market"

Another promising sector which has attracted the interest of Frigoglass Group is the so-called "white goods market." As Mr. Joris explains, this pertains to the market category of lower-cost, unbranded coolers, which is booming in developing economies – such as India and Southeast Asia.

He adds that this "white market" is highly competitive, as many players prefer to procure products of lower quality and lower standards. Frigoglass, however, benefit from expanding its product portfolio and offer a range that caters to all needs.

New products that will make a difference

The agenda of the new Frigoglass Group management also includes the launch of new products. More specifically, significant innovative products are in the pipeline especially in the commercial coolers business vertical, that will be introduced to the market within the next few months.

It should be noted that following its recapitalization, Frigoglass Group has no corporate links with Frigoglass S.A.I.C.,  as it is 100% owned by a private parent company based in England and Wales, which holds the Group’s post-restructuring debt. 85% of this entity’s share capital is owned by Frigo NewCo 1 Limited, also a private company incorporated in England and Wales. The remaining 15% of the share capital is held by Frigoglass S.A.I.C., a company with its own Board of Directors and Management, incorporated in Greece and listed on the Athens Stock Exchange.