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.
══════════════════════════════════════════════════════════════════════════
• 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
══════════════════════════════════════════════════════════════════════════
22.08.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
══════════════════════════════════════════════════════════════════════════
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
