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Mayr-Melnhof Karton AG: Results for the first quarter of 2022

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EQS-News: Mayr-Melnhof Karton AG / Key word(s): Quarterly / Interim Statement
Mayr-Melnhof Karton AG: Results for the first quarter of 2022
26.04.2022 / 08:00
The issuer is solely responsible for the content of this announcement.

  • Margins restored

  • Significant growth due to previous year's acquisitions

  • Strong demand and high capacity utilization in both divisions

  • Persisting input cost increase passed through

  • Growth strategy for Packaging advanced

The MM Group succeeded in catching up again in margins in the 1st quarter of 2022, after cost inflation-related pressure in previous quarters. Consistent implementation of necessary price increases and sustained strong demand in both divisions made this possible. Significant growth compared to the 1st quarter of the previous year resulted mainly from the inclusion of the cartonboard and paper mills in Poland and Finland acquired at the beginning of August last year as well as higher price levels. Due to widely booked capacities and longer delivery times, great attention is paid to the continuous supply of our customers, which we meet through the highest possible flexibility. As a result, despite increasing challenges in the supply chain, we continued to operate at almost full capacity. With the acquisition of the leading Nordic pharmaceutical packaging group Eson Pac in April, MM has recently advanced the growth strategy for Packaging.

The continuing increase in raw material, transport and energy costs has been countered by renewed price adjustments since the beginning of the 2nd quarter in order to safeguard margins. However, due to the overall economic uncertainties, it is currently not possible to make a more detailed assessment for the current year.

Group Key indicators - IFRS

Consolidated, in millions of EUR

1Q/2022

1Q/2021

+/-

Sales

1,060.4

641.3

+65.4 %

EBITDA

155.0

92.7

+67.2 %

Operating Profit

111.1

61.2

+81.5 %

Operating margin (in %)

10.5 %

9.6 %

+93 bp

Profit before tax

103.6

58.6

+76.9 %

Profit for the period

79.5

43.9

+81.2 %

Earnings per share (in EUR)

3.95

2.18

 

 

INCOME STATEMENT

The income statement as of the 1st quarter is particularly characterized by the inclusion of the cartonboard and paper mills MM Kotkamills and MM Kwidzyn, which were acquired at the beginning of August 2021.

The Group's consolidated sales increased to EUR 1,060.4 million and were EUR 419.1 million higher than the comparable figure of the previous year (1Q 2021: EUR 641.3 million). This growth is mainly acquisition-related and due to passing on of cost increases through higher prices.

At EUR 111.1 million, operating profit was EUR 49.9 million above the previous year's value (1Q 2021: EUR 61.2 million). The significant rise in the MM Board & Paper division was faced by a stable development at MM Packaging. The Group's operating margin increased to 10.5 % (1Q 2021: 9.6 %).

Financial income of EUR 1.6 million (1Q 2021: EUR 0.5 million) contrasted with financial expenses of EUR -7.5 million (1Q 2021: EUR -3.6 million). The latter increased in particular due to the issuance of Schuldschein loans and Namensschuldverschreibungen in the 1st quarter of the previous year to finance the acquisitions and organic growth projects.

Profit before tax went up from EUR 58.6 million in the previous year to EUR 103.6 million. Income tax expense amounted to EUR 24.1 million (1Q 2021: EUR 14.7 million), resulting in an effective Group tax rate of 23.3 % (1Q 2021: 25.2 %).

Profit for the period rose by EUR 35.6 million to EUR 79.5 million (1Q 2021: EUR 43.9 million).

OUTLOOK

Strong demand and high order intake continue in both Board & Paper and Packaging. In order to compensate for the ongoing cost inflation since the beginning of the year, a further price increase for cartonboard and paper was implemented at the beginning of the 2nd quarter.

MM's long-term investment projects to increase competitiveness and for further growth are overall on schedule and will be implemented in 2022 and 2023 in the already indicated range of EUR 250 - 300 million p.a.. While the expansions recently started in several plants of MM Packaging should enable more business this year, the growth and earnings effects from the major investments at Board & Paper are mainly expected after 2023.

MM continues to closely monitor the developments in Russia and Ukraine as well as the international measures and possible effects on the Group. In 2021, around 9 % of the Group's cumulative EBITDA was generated in Russia and Ukraine. Packaging products for daily consumer goods are produced at two sites in Russia and at one site in Ukraine. The total book value of the three sites is less than EUR 100 million. Further shutdowns are to be expected. The reallocation of Russian export deliveries to other destinations was implemented rapidly against the background of the current market strength.

Due to the overall economic uncertainties and especially as a result of possible disruptions in the supply chain a further assessment for the present year is currently not possible.

While the integration of last year's acquisitions is still paramount at MM Board & Paper, the focus at MM Packaging is on organic growth and acquisitions.

Please find the detailed Press Release and the Report for the 1st quarter of 2022 as well as the CEO Audio-Q&A-Webcast on our website: https://www.mm.group.

 

Forthcoming results:

August 11, 2022 Half-Year Results 2022


26.04.2022 This Corporate News was distributed by EQS Group AG. www.eqs.com

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:

investor.relations@mm.group

Internet:

www.mm.group

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:

1334807


 

End of News

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