EQS-News: Mayr-Melnhof Karton AG: MM reports half-year results for 2024
   EQS-News: Mayr-Melnhof Karton AG / Key word(s): Half Year Results
   Mayr-Melnhof Karton AG: MM reports half-year results for 2024

   22.08.2024 / 08:00 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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     • Q2 ahead of Q2 2023
     • Half-year financial results below previous year due to pricing
     • Cash flow significantly improved
     • Strong volume increase in Board & Paper
     • For more transparency Packaging from now on reported as two divisions:
       MM Food & Premium Packaging and MM Pharma & Healthcare Packaging
     • Solid performance in Packaging divisions
     • Considerable reduction of carbon footprint vs. 1^st HY 2023
     • Persisting consumer restraint on end markets in line with overall weak
       economy
     • Q3 impacted by annual maintenance downtime at Board & Paper

   Group Key indicators - IFRS

   Consolidated, in millions of EUR    1^st HY/2024 1^st HY/2023     +/-
   Sales                                    2,043.9      2,181.4  -6.3 %
   Adjusted EBITDA                            201.7        237.3 -15.0 %
   Adjusted operating profit                   90.6        127.0 -28.7 %
   Adjusted operating margin (in %)           4.4 %        5.8 % -139 bp
   Profit before tax                           51.2         77.2 -33.6 %
   Profit for the period                       37.4         63.3 -41.0 %
   Earnings per share (in EUR)                 1.82         3.12        
   Cash flow from operating activities 200.6        150.1        +33.7 %

   Peter Oswald, MM CEO, comments: “The MM Group succeeded in improving its
   adjusted EBITDA and adjusted operating profit in the 2^nd quarter compared
   to both the previous two quarters as well as last year’s 2^nd quarter. The
   consistent execution of the profit & cash protection programme led to a
   significant increase in cash flow from operating activities and free cash
   flow. At the same time, the Group’s financial leverage remained largely
   constant.

   In the Board & Paper division, we saw an improvement in market demand
   following the reduction of high inventories in the supply chain. Also, our
   improved products after the machine rebuilts were well received by our
   customers. This led to a significant increase in sales volumes of around
   18 %. Despite selective price increases in the 2^nd quarter, average
   prices were still substantially below last year, resulting in lower sales.
   At the same time, some costs like paper for recycling and personnel costs
   rose again in the 2^nd quarter. Due to the comprehensive cost protection
   programme, Board & Paper managed to turn the adjusted operating profit
   again back into positive territory in the 2^nd quarter after four quarters
   of operational losses.

   Packaging, which has shown a consistently solid performance overall, will
   from now on be reported as two divisions to increase transparency: MM Food
   & Premium Packaging and MM Pharma & Healthcare Packaging, since pharma
   packaging pursues a different business model and is perceived as highly
   specialised within the packaging industry. Also, it comprises leaflets and
   labels on top of folding cartons.”

   “Due to the ongoing weak economy in the main market of Europe and
   persistent restrained consumer spending on daily consumer goods, we expect
   only a slow development in the end markets and continued underutilisation
   in the cartonboard industry. In the 3^rd quarter, annual maintenance
   downtime at our pulp mills in Kwidzyn and Kotkamills will affect Board &
   Paper results while we assume continuity for both of the packaging
   divisions.”, underlines Oswald.

   INCOME STATEMENT
   At EUR 2,043.9 million, the Group’s consolidated sales were below the
   previous year's figure (1^st half of 2023: EUR 2,181.4 million), mainly
   due to lower selling prices.

   Adjusted operating profit decreased by EUR 36.4 million from EUR 127.0
   million to EUR 90.6 million. This decrease is primarily due to lower
   average prices in the Board & Paper division. The Group’s adjusted
   operating margin was 4.4 % (1^st half of 2023: 5.8 %).

   Financial income amounted to EUR 13.3 million (1^st half of 2023: EUR 3.7
   million). The increase in financial expenses from EUR -24.7 million to EUR
   -42.7 million resulted in particular from higher interest rates for
   variable-interest financing. “Other financial result - net” changed from
   EUR -5.9 million to EUR -10.0 million, mainly owing to currency
   translations.

   Profit before tax totalled EUR 51.2 million after EUR 77.2 million in the
   previous year. Income tax expense amounted to EUR 13.8 million (1^st half
   of 2023: EUR 13.9 million), resulting in an effective Group tax rate of
   27.1 % (1^st half of 2023: 17.9 %).

   Profit for the period decreased accordingly from EUR 63.3 million to EUR
   37.4 million.

   SUSTAINABILITY DEVELOPMENT
   The carbon footprint of the MM Group was down by considerable 23 % in the
   1^st half-year (1^st half of 2024: 569,294 tCO(2)e; 1^st half of 2023:
   737,926 tCO(2)e).

   DEVELOPMENT IN THE 2^ND QUARTER
   In the 2^nd quarter, the MM Group was able to improve results compared to
   the previous quarter and exceeded the previous year's figure.

   After four quarters, the MM Board & Paper division could achieve again a
   positive adjusted operating profit with improvements in price and volume.
   The MM Food & Premium Packaging division recorded continuity at a good
   level, while the momentum at MM Pharma & Healthcare weakened slightly due
   to a full supply chain.

   Consolidated sales of EUR 1,018.9 million were somewhat below the 1^st
   quarter of 2024 (EUR 1,025.0 million) as well as the previous year’s level
   (Q2 2023: EUR 1,059.3 million).

   The Group’s adjusted operating profit increased to EUR 51.0 million,
   exceeding both the previous quarter’s and the previous year’s figure (Q1
   2024: EUR 39.6 million; Q2 2023: EUR 48.3 million). The adjusted operating
   margin came in at 5.0 % (Q1 2024: 3.9 %; Q2 2023: 4.6 %). Adjusted EBITDA
   reached EUR 107.2 million (Q1 2024: EUR 94.5 million; Q2 2023: EUR 103.7
   million). Profit for the period amounted to EUR 26.5 million (Q1 2024: EUR
   10.9 million; Q2 2023: EUR 28.4 million).

   The adjusted operating margin of the MM Board & Paper division increased
   to 0.4 % (Q1 2024: -2.7 %; Q2 2023: -2.0 %) due to the positive
   development of sales and production volumes despite lower average prices.
   Capacity utilisation was significantly higher than in the 2^nd quarter of
   the previous year, which was characterised by significant market- and
   rebuild-related machine downtime.

   MM Food & Premium Packaging managed to maintain a solid adjusted operating
   margin of 10.2 % (Q1 2024: 9.5 %; Q2 2023: 11.4 %), primarily through
   productivity increases.

   The operating margin of MM Pharma & Healthcare Packaging was 4.6 % (Q1
   2024: 7.3 %; Q2 2023: 4.9 %), due to more subdued demand resulting from a
   reduction of inventories in the supply chain of the pharma industry.

   OUTLOOK
   Given the persistently overall weak economy and continuing restraint
   consumer spending we anticipate that the current low market activity will
   persist in the coming months. We will continue to pursue selective price
   increases. In the 3^rd quarter, annual maintenance downtime at our pulp
   mills in Kwidzyn and Kotkamills will affect Board & Paper results while we
   assume continuity for the packaging divisions.

   MM stays focused on enhancing earnings and cash generation by continuing
   its profit & cash protection programme. The majority of savings are
   expected to materialise in 2025. Capital expenditures will remain
   significantly lower than in previous years, as the major projects have
   already been successfully completed. Our strategy and capital allocation
   we will continue to focus on expanding in growing, innovative and
   sustainable market segments, but we will prioritise improving margins
   before pursuing further non-organic growth.

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

   Please find the detailed Press Release and the Half-Year Financial Report
   2024 as well as the CEO video statement and the details for today’s CEO
   Conference Call on our website: https://www.mm.group.
    

   Forthcoming results:
   November 7, 2024   Results for the first three quarters of 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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   22.08.2024 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: 1972627


    
   End of News EQS News Service


   1972627  22.08.2024 CET/CEST

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