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.
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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
