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DGAP-News: Mayr-Melnhof Karton AG
/ Key word(s): Half Year Results
The Mayr-Melnhof Group recorded an overall solid operating business performance also in the 2nd quarter of 2020 despite increasingly difficult macroeconomic conditions. Although the demand for our products, cartonboard and cartonboard packaging for consumer staples, shows a certain resilience, the increase in inventories at customers at the beginning of the pandemic and the significant economic downturn in several markets towards mid-year had an increasingly dampening effect. At stable sales, the operating profit for the 1st half-year of 2020 was only slightly below the previous year despite impairments. In the cartonboard division, favorable raw material and energy costs as well as a good upkeep of cartonboard prices contributed to the positive development. In contrast, the packaging division performed slightly below the previous year's level, also due to the product mix. Against the background of the global economic recession and rising competitive intensity, the Mayr-Melnhof Group will strengthen its focus on optimizing structural costs and deepening market penetration through innovation and product portfolio adjustments. Investments aimed at this are to be intensified. The annual result is expected to be further below the previous year's level, as the intensified economic downturn and necessary adjustment measures may have a negative impact on results. Group Key indicators (IFRS, unaudited) The operating profit of EUR 122.5 million was 1.2 % or EUR 1.5 million below the previous year's figure (1st half of 2019: EUR 124.0 million) and includes expenses of EUR -8.6 million for the termination agreement with the former CEO, which were booked in equal shares in the divisions. Depreciation and amortization increased from EUR 67.6 million to EUR 89.2 million, which includes market-related impairments in the non-current assets of both divisions amounting to EUR 20.9 million. In the 1st half of the previous year, one-off acquisition effects from the initial consolidation of the Tann-Group due to the recognition of the order backlog and inventory measurement were recorded in the amount of EUR -4.8 million. The Group's operating margin thus remained unchanged at 9.7 % (1st half of 2019: 9.7 %). Financial income of EUR 0.9 million (1st half of 2019: EUR 0.7 million) contrasted with financial expenses of EUR -3.8 million (1st half of 2019: EUR -4.0 million). The "Other financial result - net" amounted to EUR -1.9 million (1st half of 2019: EUR 1.9 million), mainly due to changes in the foreign currency result. Profit before tax of EUR 117.7 million was thus 4.0 % below the previous year's figure (1st half of 2019: EUR 122.6 million). Income tax expense amounted to EUR 32.8 million (1st half of 2019: EUR 30.3 million), resulting in an effective Group tax rate of 27.9 % (1st half of 2019: 24.7 %). This increase is mainly due to tax effects of the termination agreement and the impairment. Profit for the period accordingly went down 8.0 % to EUR 84.9 million (1st half of 2019: EUR 92.3 million). As a result of the Covid-19 pandemic and the associated impacts, an impairment test of non-current assets was carried out and a valuation loss of EUR 20.9 million was determined. Of this amount EUR 13.1 million is attributable to the cartonboard division and EUR 7.8 million to the packaging division. The Group's operating profit amounted to EUR 57.9 million, compared to EUR 64.6 million in the 1st quarter of 2020 and EUR 66.8 million in the 2nd quarter of the previous year. Consolidated sales of EUR 619.9 million were slightly below the previous and previous year's quarter (1Q 2020: EUR 646.6 million; 2Q 2019: EUR 632.6 million). The Group's operating margin thus reached 9.3 % (1Q 2020: 10.0 %; 2Q 2019: 10.6 %). The profit for the period amounted to EUR 39.8 million (1Q 2020: EUR 45.1 million; 2Q 2019: EUR 48.6 million). The cartonboard division achieved an operating margin of 9.6 % (1Q 2020: 12.5 %; 2Q 2019: 11.2 %) and registered a capacity utilization of 99 % (1Q 2020: 98 %; 2Q 2019: 98 %). At 8.4 %, the operating margin in the packaging division was higher than in the 1st quarter of the current year (1Q 2020: 7.6 %), but lower than in the previous year (2Q 2019: 9.4 %).
Today more than ever, our cost structures and market positioning are decisive for the continuation of MM's long-term course of success and are therefore increasingly in the focus of our optimization steps. Economies of scale are to be increased, the related investments intensified and the sales spectrum broadened or deepened. A special focus is on increased efforts for innovations. The annual result is expected to be further below the previous year's level, as the intensified economic downturn and necessary adjustment measures may have a negative impact on results. Please find the detailed Press Release and the Half-Year Financial Report 2020 as well as the CEO video statement and the details for today's CEO Conference Call on our website: -melnhof.com. For further information, please contact: Stephan Sweerts-Sporck E-Mail:
20.08.2020 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: | 1120883 |
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| End of News | DGAP News Service |
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1120883Â Â 20.08.2020Â
