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EQS-News: Mayr-Melnhof Karton AG
/ Key word(s): Quarter Results
Group Key indicators - IFRS
Peter Oswald, MM CEO, comments: “Despite persistent consumer restraint in the European core markets the MM Group succeeded in maintaining sales in the 3rd quarter at the level of the two previous quarters. The MM Board & Paper division recorded a significant increase in volumes of around 18 % so far this year after the reduction of inventories in the supply chain and machine rebuilds in the previous year. As expected, 3rd quarter results were below both the previous quarter and the previous year’s 3rd quarter due to planned annual maintenance downtime at Board & Paper, which mainly affected the pulp mills in Poland and Finland. The costs of the annual shutdowns of MM Kwidzyn and MM Kotkamills were roughly EUR 25 million. MM Food & Premium Packaging showed again a strong performance due to productivity increases and cost reductions, even though profitability was somewhat below last year. MM Pharma & Healthcare Packaging could slightly improve profits, which were however held back by weak demand and extra costs from starting up new machines. In the Board & Paper division, the earnings situation stayed weak despite the significant increase in volumes and cost reductions. This is primarily due to a substantial drop in average prices, along with rising costs in some areas like paper for recycling, wood and personnel. A comprehensive profit & cash protection programme has been in place for several quarters, with the majority of savings expected to materialise in 2025. Additionally, targeted price increases are being implemented, with their impact mainly anticipated next year. For the 4th quarter, we expect from today's perspective a stable development in both packaging divisions as well as Board & Paper returning to a slightly positive result.“ “Due to the ongoing weak consumption of daily consumer goods, subdued development in the end markets and continued underutilisation in the cartonboard industry are also anticipated in 2025. Against this background, we will continue to focus on strengthening our competitiveness by reducing costs and improving our quality, sustainability, and innovation. Particular attention will remain directed towards enhancing margins and ongoing cash generation. With the significantly optimised asset base over recent years and a solid financial position, MM is very well equipped to successfully meet the continuing challenges of the market with more sustainable and innovative packaging solutions.“, underlines Oswald. INCOME STATEMENT Adjusted operating profit decreased by EUR 64.1 million from EUR 190.4 million to EUR 126.3 million. This decline is primarily price-related. The Group’s adjusted operating margin was 4.1 % (Q1-3 2023: 6.0 %). Financial income amounted to EUR 20.7 million (Q1-3 2023: EUR 5.4 million). The increase in financial expenses from EUR -40.0 million to EUR -63.3 million resulted in particular from higher interest rates for variable-interest financing. “Other financial result - net” changed from EUR -6.3 million to EUR -12.8 million, mainly owing to currency translations. Profit before tax totalled EUR 70.9 million after EUR 118.9 million in the previous year. Income tax expense amounted to EUR 18.6 million (Q1-3 2023: EUR 27.7 million), resulting in an effective Group tax rate of 26.3 % (Q1-3 2023: 23.3 %). Profit for the period decreased accordingly from EUR 91.2 million to EUR 52.3 million. DEVELOPMENT IN THE 3RD QUARTER The Group’s adjusted operating profit of EUR 35.7 million was below the previous quarter and the previous year’s figure (Q2 2024: EUR 51.0 million; Q3 2023: EUR 63.4 million). The adjusted operating margin amounted to 3.5 % (Q2 2024: 5.0 %; Q3 2023: 6.2 %). Adjusted EBITDA reached EUR 94.0 million (Q2 2024: EUR 107.2 million; Q3 2023: EUR 121.4 million). Profit for the period amounted to EUR 14.9 million (Q2 2024: EUR 26.5 million; Q3 2023: EUR 27.9 million). MM Food & Premium Packaging achieved a good adjusted operating margin of 11.2 % (Q2 2024: 10.2 %; Q3 2023: 14.9 %), mainly driven by productivity increases and cost reductions. At MM Pharma & Healthcare Packaging, the operating margin was 5.0 % (Q2 2024: 4.6 %; Q3 2023: 6.4 %), primarily as a result of continued subdued demand due to inventory reductions in the pharma industry's supply chain. The adjusted operating margin of the MM Board & Paper division decreased to -4.1 % (Q2 2024: 0.4 %; Q3 2023: -3.0 %), despite positive development of volume and cost reductions, mainly due to the planned annual maintenance downtime. Capacity utilisation in the 3rd quarter was notably higher than in the same quarter of the previous year, which was characterised by significant market- and rebuild-related machine downtime. OUTLOOK With the significantly optimised asset base over recent years, consistent measures to strengthen competitiveness in terms of costs, sustainability and innovation, and a solid financial base, MM is well positioned to successfully meet the ongoing market weakness and structural challenges. ----------------------------- Please find the detailed Press Release and the Report for the first three quarters of 2024 as well as the CEO Audio-Q&A-Webcast on our website: Forthcoming results: For further information, please contact:
07.11.2024 CET/CEST This Corporate News was distributed by 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: | 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: | 2024133 |
| End of News | EQS News Service |
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2024133 07.11.2024 CET/CEST
