EQS-News: Mayr-Melnhof Karton AG: Results for the first quarter of 2022
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.
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• 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 1^st 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 1^st 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
2^nd 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 1^st 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 1^st 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 2^nd 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 1^st 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
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26.04.2022 This Corporate News was distributed by EQS Group AG.
www.eqs.com
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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 EQS News Service
1334807 26.04.2022
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