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DGAP-News: Mayr-Melnhof Karton AG
/ Key word(s): Quarter Results
*Â Significant increase in sales and earnings
* Good capacity utilization and profit growth in both divisions * Integration of the Tann-Group according to plan * Muted market dynamics and pressure on prices persist * Positive expectations for the 2019 full year remain intact The Mayr-Melnhof Group was able to maintain with a good third quarter the growth in sales and results in the first three quarters of 2019 despite slowed market dynamics. Both divisions made a significant contribution to this and reported overall good capacity utilization in a competitive environment. While the cartonboard division benefited from stable average prices and cost reductions, the increased result in the packaging division was largely attributed to the initial inclusion of the Tann-Group. For the fourth quarter continuing price pressure and lower business volume towards the end of the year are to be expected with the continuation of the so far attained profit level becoming a challenge. Nevertheless, the positive expectations for the entire year 2019 remain intact. GROUP KEY INDICATORS Group Key indicators (IFRS, unaudited) consolidated in millions of EUR          1-3Q/2019         1-3Q/2018                +/- Sales                                                     1,924.3               1,763.1             +9.1 % EBITDA                                                     297.2                  252.1            +17.9 % Operating profit                                        195.6                   172.3            +13.5 % Operating margin (in %)                             10.2 %                   9.8 % Profit before tax                                        194.2                   169.0             +14.9 % Profit for the period                                  146.3                   126.4             +15.7 % Earnings per share (in EUR)                         7.29                    6.30 The consolidated sales of the Group totaled EUR 1,924.3 million and were thus 9.1 % or EUR 161.2 million above the previous year's value (1-3Q 2018: EUR 1,763.1 million).      This increase primarily resulted acquisition-related from the packaging division. EBITDA rose by 17.9 % to EUR 297.2 million (1-3Q 2018: EUR 252.1 million). At EUR 195.6 million, an operating profit 13.5 % or EUR 23.3 million above the previous year's value was achieved (1-3Q 2018: EUR 172.3 million), with MM Packaging accounting for two thirds and MM Karton for one third of the increase. In the course of the initial consolidation of the Tann-Group one-off expenses from acquisition effects totaling EUR -4.8 million were reported due to recognition of order backlog and inventory measurement.       The operating margin amounted to 10.2 % (1-3Q 2018: 9.8 %). Financial income of EUR 1.0 million (1-3Q 2018: EUR 1.0 million) contrasted with financial expenses of EUR -6.3 million (1-3Q 2018: EUR -4.7 million). "Other financial result - net" increased to EUR 3.9 million (1-3Q 2018: EUR 0.4 million), in particular as a result of foreign currency gains. Profit before tax went up accordingly by 14.9 % from EUR 169.0 million to EUR 194.2 million. Income tax expense amounted to EUR 47.9 million (1-3Q 2018: EUR 42.6 million), resulting in an effective Group tax rate of 24.7 % (1-3Q 2018: 25.2 %). Profit for the period thus rose by 15.7 % to EUR 146.3 million (1-3Q 2018: EUR 126.4 million). DEVELOPMENT IN THE THIRD QUARTER At EUR 648.8 million and EUR 71.6 million respectively, Group sales and operating profit in the third quarter of 2019 were above the level of the previous year (3Q 2018: EUR 592.5 million and EUR 58.0 million respectively) due to the acquisition and improvements in current business of both divisions, whereby an operating margin of 11.0 % (1Q/2Q 2019: 8.9 % and 10.6 % respectively; 3Q 2018: 9.8 %) was achieved. The further growth in operating profit compared with the second quarter of the current year (1Q/2Q 2019: EUR 57.2 million and EUR 66.8 million respectively) can be primarily attributed to an increase in sales and cost reductions at MM Packaging. The profit for the period at EUR 54.0 million was significantly above the comparative figure of the previous year (3Q 2018: EUR 42.7 million) as well as above those of the preceding quarters (1Q/2Q 2019: EUR 43.7 million and EUR 48.6 million respectively). With sustained good capacity utilization of 98 % (1Q/2Q 2019: each 98 %; 3Q 2018: 99 %), largely stable average prices, and optimized costs, the cartonboard division reached an operating margin of 11.0 % (1Q/2Q 2019: 10.1 % and 11.2 % respectively; 3Q 2018: 9.0 %). Due to the acquisition and cost savings in particular, the packaging division achieved an operating margin of 10.3 % (1Q/2Q 2019: 7.4 % and 9.4 % respectively; 3Q 2018: 9.7 %).
Against the background of continuing weak economic conditions, our European main markets remain characterized by short-term planning of customers and intense competition. Although we still anticipate sustainable demand of our end markets, increasing price pressure and the usually reduced level of business activity at the end of the year must be expected. Even with continuity on raw material markets, the continuation of the profit level so far attained will be a challenge in the fourth quarter. Based on the strong earnings development in the first nine months the positive prospects for the whole financial year 2019 remain however in place.
Stephan Sweerts-Sporck
14.11.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
| 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: | |
| Internet: | -melnhof.com |
| ISIN: | AT0000938204 |
| WKN: | 93820 |
| Indices: | ATX |
| Listed: | Regulated Unofficial Market in Berlin, Frankfurt (Basic Board), Munich, Stuttgart; Vienna Stock Exchange (Official Market) |
| EQS News ID: | 912651 |
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| End of News | DGAP News Service |
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912651Â Â 14.11.2019Â
