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EQS-News: Mayr-Melnhof Karton AG / Key word(s): Quarterly / Interim Statement
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
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).
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.
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.
August 11, 2022 Half-Year Results 2022
26.04.2022 This Corporate News was distributed by EQS Group AG. www.eqs.com
Mayr-Melnhof Karton AG
0043 1 501 36 91180
0043 1 501 36 91391
Regulated Unofficial Market in Berlin, Frankfurt (Basic Board), Munich, Stuttgart; Vienna Stock Exchange (Official Market)
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