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 CO₂ emissions significantly reduced by 35 %
• Dividend increase of 20 % to EUR 1.80/share reflects growth in earnings per share

Group Key indicators - IFRS

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 CO₂ 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 .
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.: 180,
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