MWV leaders present strategies to achieve average annual growth of 5%-10%, deliver over US$1B of incremental revenue over next three-five years; plans include building partnerships with profit potential customers, innovative products, market expansion
December 14, 2011
– MeadWestvaco Corporation (NYSE: MWV) today hosted qualified investors and analysts at its headquarters in Richmond, Virginia, to detail the company’s profitable growth strategy for its global packaging business and to outline its goal of delivering top-quartile shareholder returns.
At the meeting, senior MWV leaders presented strategies for achieving average annual growth of 5-10 percent by continuing to leverage the strong packaging platform the company has built to serve targeted end markets, including food, beverage, tobacco, personal care, home and garden, healthcare, as well as corrugated packaging in Brazil. The company highlighted the strategies it is executing across three principal growth levers – Commercial Excellence, Innovation and Emerging Markets – to deliver on the target.
“We have the ability to drive sustainable, profitable growth by bringing our packaging capabilities, including deep end-market knowledge and consumer insights, to create partnerships with our customers that leverage our entire global platform,” said John A. Luke, Jr., chairman and chief executive officer. “We are growing with our customers, particularly in faster growing emerging markets where we already have significant and scalable platforms. As we deliver the packaging solutions our leading consumer packaged goods customers need to grow their businesses around the world, we are creating higher value for our shareholders.”
$1 Billion+ of Incremental Revenue
MWV outlined strategies focused on three core growth levers - Commercial Excellence, Innovation and Emerging Markets. The company believes these strategies can deliver more than $1 billion of incremental revenue over the next three to five years.
MWV detailed its approach to identifying top priority customers based on profit potential, and then building or enhancing partnerships with those customers to create innovative solutions. The company’s strategy is centered on leveraging its broad packaging capabilities to grow its share of business with the world’s largest and most successful consumer packaged goods and retail companies to take advantage of new and expanding revenue opportunities over the next three to five years.
MWV also provided a first-hand look at how the company is commercializing new products based on market and consumer insights. The company outlined how it is using consumer insights capabilities in conjunction with open innovation and expertise in materials science and packaging design to accelerate speed to market with new products. MWV featured several examples of innovative new products that are in later stages of development. These innovations will help drive increased high-margin revenue over the next three to five years.
MWV has a long and successful history in emerging markets, and is already expanding its advantaged platform in Brazil (MWV Rigesa). But, it also reviewed strategies for growing its substantial business in China, as well as scaling up its participation in India. The company is addressing each region’s unique needs and opportunities with a broad set of packaging capabilities and believes continued penetration of its packaging products and solutions in these markets will generate greater incremental revenue over the next three to five years.
Packaging Revenue Growth to Drive Earnings and Cash Flow
MWV also detailed its transformed business model which targets 5-10 percent average annual revenue growth.
“We have built a strong business model that is already delivering improved financial performance,” said Mark Rajkowski, senior vice president and chief financial officer. “The profitable growth plans for our packaging businesses that we outlined today centered on packaging reflect a growth engine that will deliver higher operating margins and substantial cash flows that we will use to reinvest in our business and to increase returns to shareholders.”
All of the materials MWV presented at its event, as well as an archived broadcast, can be found at www.mwv.com.
MeadWestvaco Corporation (NYSE: MWV - News), provides packaging solutions to many of the world’s most-admired brands in the healthcare, beauty and personal care, food, beverage, home and garden, and tobacco industries. The company's businesses also include Consumer & Office Products, Specialty Chemicals, and the Community Development and Land Management Group, which sustainably manages the company’s land holdings to support its operations, and to provide for conservation, recreation and development opportunities. With 17,500 employees worldwide, MWV operates in 30 countries and serves customers in more than 100 nations. MWV manages all of its forestlands in accordance with internationally recognized forest certification standards, and has been named to the Dow Jones Sustainability World Index for eight consecutive years. For more information, please visit www.mwv.com.
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