EQS-News: Mayr-Melnhof Karton AG / Key word(s): Annual Results
Mayr-Melnhof Karton AG: MM reports Annual Results 2024
18.03.2025 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
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In a challenging environment successfully prevailed
• Packaging divisions with solid performance
• Board & Paper despite significant volume increase affected by lower
prices and higher costs
• Consequent implementation of profit & cash protection program
• Absolute CO(2) emissions significantly reduced by 35 %
• Dividend increase of 20 % to EUR 1.80/share reflects growth in
earnings per share
Group Key indicators - IFRS
Consolidated, in millions of EUR 2024 2023 +/-
Sales 4,079.6 4,164.4 -2.0 %
Adjusted EBITDA 418.5 450.2 -7.0 %
Adjusted operating profit 190.0 229.2 -17.1 %
Adjusted operating margin (in %) 4.7 % 5.5 % -85 bp
Profit before tax 114.3 136.7 -16.4 %
Profit for the year 110.5 89.1 +24.1 %
Earnings per share (in EUR) 5.41 4.36 +24.1 %
Cash flow from operating activities 516.3 786.2 -34.3 %
Free cash flow 302.2 369.8 -18.3 %
Peter Oswald, MM CEO, comments: “The MM Group was able to successfully
stand its ground in an environment of persistently weak consumption and
highly intense competition in the core European markets in 2024.
The MM Food & Premium Packaging division showed a strong performance due
to productivity increases, cost reductions and volume acquisitions,
although profitability did not quite reach the previous year's level.
The MM Pharma & Healthcare Packaging division recorded a decline in volume
due to a weaker demand and a change in pricing policy. In addition, there
were further costs, including those incurred by the start-up of new
machines, resulting in an adjusted operating profit slightly below the
previous year's level.
At the MM Board & Paper division, the weak earnings situation persisted
despite a considerable volume increase and cost reduction measures. This
is mainly due to significantly lower average prices resulting from the
weak market situation, while several costs, such as recovered paper, wood
and personnel, increased. That resulted in a small operating loss at the
level of the previous year.
By consistently implementing the profit & cash protection program, we
significantly reduced working capital by the end of the year, cut capital
expenditures and strengthened our cost efficiency in a targeted manner.
However, the majority of the savings from the cost reduction programs
implemented to date will only be reflected in 2025. Net debt decreased to
EUR 1,078.7 million (December 31, 2023: EUR 1,261.9 million), the net
debt/adjusted EBITDA ratio was 2.6 (December 31, 2023: 2.8).
In line with the earnings development and the long-term dividend policy
which provides for the distribution of one third of the profit for the
year, a 20 % increase in the dividend to EUR 1.80 per share (2023: EUR
1.50) for the financial year 2024 will be proposed to the 31^st Annual
Shareholders' Meeting on April 30, 2025.“
“With regard to non-financial performance, we are pleased to report that
absolute CO2 emissions were significantly reduced by 35 % compared to the
previous year. This is due to the switch to renewable, low-carbon forms of
energy and energy efficiency measures.“, underlines Peter Oswald.
INCOME STATEMENT
At EUR 4,079.6 million, the Group's consolidated sales were slightly below
the previous year's figure (2023: EUR 4,164.4 million) by 2.0 % or EUR
84.8 million. A significant volume increase at MM Board & Paper was offset
primarily by lower average prices in the MM Food & Premium Packaging and
MM Board & Paper divisions.
The decline in adjusted operating profit to EUR 190.0 million after EUR
229.2 million in 2023 was mainly caused by the division MM Food & Premium
Packaging. The Group’s adjusted operating margin therefore was 4.7 %
(2023: 5.5 %) and the return on capital employed reached 5.6 % (2023: 6.5
%). Adjusted EBITDA totalled EUR 418.5 million (2023: EUR 450.2 million),
resulting in an adjusted EBITDA margin of 10.3 % (2023: 10.8 %).
Financial income increased to EUR 27.1 million (2023: EUR 8.7 million).
The increase in financial expenses from EUR -58.3 million to EUR -82.9
million resulted in particular from higher interest rates for
variable-interest financing. “Other financial result - net” changed to EUR
–19.9 million (2023: EUR -11.4 million), mainly owing to currency
translations.
Profit before tax totalled EUR 114.3 million after EUR 136.7 million in
the previous year. Income tax expense decreased to EUR 3.8 million (2023:
EUR 47.6 million), mainly due to the capitalisation of loss carryforwards
of the former Essentra Packaging, resulting in an effective Group tax rate
of 3.4 % (2023: 34.8 %). The Group's standard tax rate is 19.0 % (2023:
24.4 %).
Profit for the year increased to EUR 110.5 million (2023: EUR 89.1
million).
DEVELOPMENT IN THE 4^TH QUARTER
The 4^th quarter was generally characterised by persistently weak market
demand and order intake. At EUR 1,010.8 million consolidated sales were
slightly above the previous year's period (4^th quarter 2023: EUR 967.9
million). Adjusted operating profit rose to EUR 63.7 million (4^th quarter
2023: EUR 38.8 million), mainly due to the improved performance of MM
Board & Paper. The adjusted operating margin was 6.3 % (4^th quarter 2023:
4.0 %). Profit before tax reached EUR 43.4 million (4^th quarter 2023: EUR
17.8 million) and the profit for the period EUR 58.2 million (4^th quarter
2023: EUR -2.1 million). As a result of the capitalisation of loss
carryforwards, mainly from former Essentra Packaging, tax expense was
recorded with a positive amount of EUR 14.8 million (4^th quarter 2023:
EUR -19.9 million). Cash flow from operating activities totalled EUR 348.7
million (4^th quarter 2023: EUR 458.9 million), in particular due to
measures to reduce working capital.
The adjusted operating profit of MM Food & Premium Packaging totalled EUR
48.8 million (4^th quarter 2023: EUR 54.6 million). The adjusted operating
margin came in at a good 11.2 % (4^th quarter 2023: 13.3 %).
MM Pharma & Healthcare Packaging reported a demand-related decline in
adjusted operating profit to EUR 3.0 million (4^th quarter 2023: EUR 8.4
million). The adjusted operating margin was 2.2 % (4^th quarter 2023: 5.5
%).
At EUR 11.9 million, the adjusted operating profit of MM Board & Paper
exceeded the previous year's figure (4^th quarter 2023: EUR -24.2
million), mainly due to a higher CO(2) compensation. The adjusted
operating margin thus amounted to 2.5 % (4^th quarter 2023: -5.4 %).
OUTLOOK
Market demand remains weak due to the subdued economic outlook for the
main European markets.
MM aims to strengthen and expand its market position in the three
divisions by pursuing cost, technology and innovation leadership in the
core competence areas of packaging and cartonboard. The sales focus is
placed on a broadened distribution approach, innovative solutions and the
substitution of plastics. Furthermore the objective is to improve
profitability through cost management and structural optimisation
measures. Based on the encouraging progress made to date, a comprehensive
efficiency program called “Fit-for-Future” is being rolled out for the
entire Group.
On the procurement markets, the situation is currently showing a rather
stable development at an elevated level.
Capital expenditures in 2025 will focus primarily on improving
competitiveness and increasing the share of renewable energies and are
expected to amount to around EUR 300 million. The annual maintenance
shutdowns for Board & Paper, which mainly affect the pulp mills in Poland
and Finland, will take place primarily in the 3^rd quarter of this year.
The related expenses are currently estimated at around EUR 41 million
(2024: EUR 26 million).
The closing of the sale of the TANN Group is expected in the first half of
2025. The aim is to use the proceeds from the sale to reduce the Group's
debt.
In 2025, MM will continue to work consistently on implementing its
sustainability targets. The focus here is placed on the core environmental
topics of decarbonisation, water efficiency, biodiversity and waste
avoidance. In the social area, the focus is on promoting occupational
safety and avoiding accidents. In addition, suppliers are to be integrated
even more comprehensively with regard to sustainability aspects.
With a highly competitive asset base and solid financing, MM is very well
positioned to successfully navigate the persistently challenging market
situation in 2025 and to create long-term added value with sustainable and
innovative packaging.
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The press release and a video statement of the Management Board are
available on the internet under (1)www.mm.group.
The Annual Report 2024 will be available as of April 9, 2025.
Forthcoming results:
April 29, 2025 Results for the 1^st quarter of 2025
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: (2)investor.relations@mm.group, Website: (3)www.mm.group
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18.03.2025 CET/CEST This Corporate News was distributed by EQS Group.
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: 2101928
End of News EQS News Service
2101928 18.03.2025 CET/CEST
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