EQS-News: Mayr-Melnhof Karton AG: MM reports results for the first three quarters of 2024
   EQS-News: Mayr-Melnhof Karton AG / Key word(s): Quarter Results
   Mayr-Melnhof Karton AG: MM reports results for the first three quarters of
   2024

   07.11.2024 / 08:00 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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     • 3^rd quarter affected by annual maintenance downtime at Board & Paper
     • Packaging divisions with continued solid performance
     • Board & Paper despite significant volume increase affected by lower
       prices and higher costs
     • Effects of targeted cartonboard price increases and consistent cost
       savings expected by 2025
     • Consumer restraint continues in end markets

   Group Key indicators - IFRS

   Consolidated, in millions of EUR    Q1-3/2024 Q1-3/2023     +/-
   Sales                                 3,068.8   3,196.5  -4.0 %
   Adjusted EBITDA                         295.7     358.7 -17.6 %
   Adjusted operating profit               126.3     190.4 -33.7 %
   Adjusted operating margin (in %)        4.1 %     6.0 % -184 bp
   Profit before tax                        70.9     118.9 -40.4 %
   Profit for the period                    52.3      91.2 -42.7 %
   Earnings per share (in EUR)              2.54      4.50        
   Cash flow from operating activities     167.6     327.3 -48.8 %

   Peter Oswald, MM CEO, comments: “Despite persistent consumer restraint in
   the European core markets the MM Group succeeded in maintaining sales in
   the 3^rd quarter at the level of the two previous quarters. The MM Board &
   Paper division recorded a significant increase in volumes of around 18 %
   so far this year after the reduction of inventories in the supply chain
   and machine rebuilds in the previous year. As expected, 3^rd quarter
   results were below both the previous quarter and the previous year’s 3^rd
   quarter due to planned annual maintenance downtime at Board & Paper, which
   mainly affected the pulp mills in Poland and Finland. The costs of the
   annual shutdowns of MM Kwidzyn and MM Kotkamills were roughly EUR 25
   million.

   MM Food & Premium Packaging showed again a strong performance due to
   productivity increases and cost reductions, even though profitability was
   somewhat below last year.

   MM Pharma & Healthcare Packaging could slightly improve profits, which
   were however held back by weak demand and extra costs from starting up new
   machines.

   In the Board & Paper division, the earnings situation stayed weak despite
   the significant increase in volumes and cost reductions. This is primarily
   due to a substantial drop in average prices, along with rising costs in
   some areas like paper for recycling, wood and personnel. A comprehensive
   profit & cash protection programme has been in place for several quarters,
   with the majority of savings expected to materialise in 2025.
   Additionally, targeted price increases are being implemented, with their
   impact mainly anticipated next year.

   For the 4^th quarter, we expect from today's perspective a stable
   development in both packaging divisions as well as Board & Paper returning
   to a slightly positive result.“

   “Due to the ongoing weak consumption of daily consumer goods, subdued
   development in the end markets and continued underutilisation in the
   cartonboard industry are also anticipated in 2025. Against this
   background, we will continue to focus on strengthening our competitiveness
   by reducing costs and improving our quality, sustainability, and
   innovation. Particular attention will remain directed towards enhancing
   margins and ongoing cash generation. With the significantly optimised
   asset base over recent years and a solid financial position, MM is very
   well equipped to successfully meet the continuing challenges of the market
   with more sustainable and innovative packaging solutions.“, underlines
   Oswald.

   INCOME STATEMENT
   At EUR 3,068.8 million, the Group’s consolidated sales were below the
   previous year's figure (Q1-3 2023: EUR 3,196.5 million), mainly due to
   lower selling prices.

   Adjusted operating profit decreased by EUR 64.1 million from EUR 190.4
   million to EUR 126.3 million. This decline is primarily price-related. The
   Group’s adjusted operating margin was 4.1 % (Q1-3 2023: 6.0 %).

   Financial income amounted to EUR 20.7 million (Q1-3 2023: EUR 5.4
   million). The increase in financial expenses from EUR -40.0 million to EUR
   -63.3 million resulted in particular from higher interest rates for
   variable-interest financing. “Other financial result - net” changed from
   EUR -6.3 million to EUR -12.8 million, mainly owing to currency
   translations.

   Profit before tax totalled EUR 70.9 million after EUR 118.9 million in the
   previous year. Income tax expense amounted to EUR 18.6 million (Q1-3 2023:
   EUR 27.7 million), resulting in an effective Group tax rate of 26.3 %
   (Q1-3 2023: 23.3 %).

   Profit for the period decreased accordingly from EUR 91.2 million to EUR
   52.3 million.

   DEVELOPMENT IN THE 3^RD QUARTER
   At EUR 1,024.9 million, consolidated sales in the 3^rd quarter exceeded
   both the figure for the 2^nd quarter of 2024 (EUR 1,018.9 million) and the
   previous year's level (Q3 2023: EUR 1,015.1 million).

   The Group’s adjusted operating profit of EUR 35.7 million was below the
   previous quarter and the previous year’s figure (Q2 2024: EUR 51.0
   million; Q3 2023: EUR 63.4 million). The adjusted operating margin
   amounted to 3.5 % (Q2 2024: 5.0 %; Q3 2023: 6.2 %). Adjusted EBITDA
   reached EUR 94.0 million (Q2 2024: EUR 107.2 million; Q3 2023: EUR 121.4
   million). Profit for the period amounted to EUR 14.9 million (Q2 2024: EUR
   26.5 million; Q3 2023: EUR 27.9 million).

   MM Food & Premium Packaging achieved a good adjusted operating margin of
   11.2 % (Q2 2024: 10.2 %; Q3 2023: 14.9 %), mainly driven by productivity
   increases and cost reductions.

   At MM Pharma & Healthcare Packaging, the operating margin was 5.0 % (Q2
   2024: 4.6 %; Q3 2023: 6.4 %), primarily as a result of continued subdued
   demand due to inventory reductions in the pharma industry's supply chain.

   The adjusted operating margin of the MM Board & Paper division decreased
   to -4.1 % (Q2 2024: 0.4 %; Q3 2023: -3.0 %), despite positive development
   of volume and cost reductions, mainly due to the planned annual
   maintenance downtime. Capacity utilisation in the 3^rd quarter was notably
   higher than in the same quarter of the previous year, which was
   characterised by significant market- and rebuild-related machine downtime.

   OUTLOOK
   Due to the ongoing weakness of the overall economy and restrained consumer
   demand, we expect the subdued market dynamics to continue in the coming
   months. Our focus remains on securing and expanding volumes as well as
   implementing targeted price increases in Board & Paper to take effect
   until next year. Additionally, the profit & cash protection programme is
   being consistently executed to enhance earnings and generate cash.
   Emphasis here is on strict cost control and value-enhancing adjustments,
   with the majority of the savings expected by 2025. Capital expenditures
   are projected to be around EUR 250 million in 2024. After the
   maintenance-related impact on earnings in Board & Paper in the 3^rd
   quarter, we anticipate a return to a slightly positive result in the 4^th
   quarter.

   With the significantly optimised asset base over recent years, consistent
   measures to strengthen competitiveness in terms of costs, sustainability
   and innovation, and a solid financial base, MM is well positioned to
   successfully meet the ongoing market weakness and structural challenges.

   -----------------------------

   Please find the detailed Press Release and the Report for the first three
   quarters of 2024 as well as the CEO Audio-Q&A-Webcast on our website:
   https://www.mm.group.
    

   Forthcoming results:
   March 18, 2025   Financial Results for 2024

   For further information, please contact:
   Stephan Sweerts-Sporck, Investor Relations, Mayr-Melnhof Karton AG,
   Brahmsplatz 6, A-1040 Vienna
   Tel.: +43 1 501 36-91180,
   E-Mail: investor.relations@mm.group, Website: https://www.mm.group

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   07.11.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
   www.eqs.com

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   Language:    English
   Company:     Mayr-Melnhof Karton AG
                Brahmsplatz 6
                1040 Wien
                Austria
   Phone:       0043 1 501 36 91180
   Fax:         0043 1 501 36 91391
   E-mail:      investor.relations@mm.group
   Internet:    www.mm.group
   ISIN:        AT0000938204
   WKN:         93820
   Indices:     ATX
   Listed:      Regulated Unofficial Market in Berlin, Frankfurt (Basic
                Board), Munich, Stuttgart, Tradegate Exchange; Vienna Stock
                Exchange (Official Market)
   EQS News ID: 2024133


    
   End of News EQS News Service


   2024133  07.11.2024 CET/CEST

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