2Q17 results above the consensus, with flat EBITDA qoq
MMK has reported its 2Q17 financial results. EBITDA was USD 455m, 5% above the Interfax consensus (-6% yoy, +1% qoq). FCF of USD 203m was up 12.5x qoq, helped by stable working capital vs. the USD 211m outflow in 1Q17 (although we expected a release in working capital in our forecast). Severstal’s 9% qoq EBITDA growth in 2Q17 was the best performer of the quarter, but MMK’s performance was better than we expected initially before the trading update, beating the consensus. MMK is less integrated into iron ore/coal production than its peers, so it experienced a margin squeeze as its iron ore and coal purchases occurred at high 1Q17 prices due to the production cycle time lag, while realised steel prices fell 3% qoq. This explains MMK’s weaker performance than SVST qoq.
Mayr-Melnhof Karton and its subsidiaries are primarily engaged in manufacturing and selling cartonboard and folding cartons with a focus on Europe. Co.'s business segments include: Mayr-Melnhof Karton, which is engaged in the manufactures and markets numerous grades of cartonboard, concentrating on coated cartonboard produced predominantly from recovered paper as well as virgin fiber-based cartonboard; and Mayr-Melnhof Packaging, which is engaged in converts cartonboard into industrial printed folding cartons mainly for the food industry, other consumer goods industries, and into cigarette packaging as well as confectionary packaging.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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