EQS-News: Mayr-Melnhof Karton AG
/ Key word(s): Annual Results
In a challenging environment successfully prevailed
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 31st 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 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 4TH QUARTER The adjusted operating profit of MM Food & Premium Packaging totalled EUR 48.8 million (4th quarter 2023: EUR 54.6 million). The adjusted operating margin came in at a good 11.2 % (4th quarter 2023: 13.3 %). MM Pharma & Healthcare Packaging reported a demand-related decline in adjusted operating profit to EUR 3.0 million (4th quarter 2023: EUR 8.4 million). The adjusted operating margin was 2.2 % (4th quarter 2023: 5.5 %). At EUR 11.9 million, the adjusted operating profit of MM Board & Paper exceeded the previous year's figure (4th quarter 2023: EUR -24.2 million), mainly due to a higher CO2 compensation. The adjusted operating margin thus amounted to 2.5 % (4th quarter 2023: -5.4 %). OUTLOOK 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 3rd 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. ----------------------------- The press release and a video statement of the Management Board are available on the internet under . Forthcoming results: For further information, please contact:
18.03.2025 CET/CEST This Corporate News was distributed by EQS Group. |
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: | p |
Internet: | |
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 |
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2101928 18.03.2025 CET/CEST