EQS-News: Mayr-Melnhof Karton AG: MM reports Annual Results 2022
EQS-News: Mayr-Melnhof Karton AG / Key word(s): Annual Results
Mayr-Melnhof Karton AG: MM reports Annual Results 2022
14.03.2023 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
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MM Group grows strongly – strategic moves show success
• Sales EUR 4.7 billion (+53 %)
• Operating profit EUR 510 million (+89 %)
• Profit for the year EUR 345 million (+81 %)
• Solid financing: Net debt/EBITDA 2.0
• Dividend proposal: EUR 4.20/share (+20 %)
• Weak order situation in 1Q 2023
Group Key indicators – IFRS
Consolidated, in millions of EUR 2022 2021 +/-
Sales 4,682.1 3,069.7 +52.5 %
EBITDA 729.9 421.0 +73.4 %
Operating Profit 510.3 269.6 +89.3 %
Operating margin (in %) 10.9 % 8.8 % +212 bp
Profit before tax 466.9 244.5 +90.9 %
Profit for the year 345.2 190.7 +81.0 %
Earnings per share (in EUR) 17.19 9.46
Peter Oswald, MM CEO, comments: “The MM Group grew significantly in terms
of profit and sales, both organically and through acquisitions, in a
macroeconomically and geopolitically challenging environment in the
financial year 2022. Demand for our natural, recyclable packaging products
made of renewable raw materials was dynamic for most of the year and
customers appreciate our investments in competitive sites, innovation and
sustainability. The energy and raw material crisis confronted MM with
particular challenges, which were overall successfully managed. Sales
price adjustments compensated for the severe rise in energy and raw
material costs. In addition, we succeeded in ensuring continuous supply to
our customers despite unstable supply chains.
The acquisitions of Essentra Packaging and Eson Pac, completed in 2022,
position MM as a global player in secondary pharma packaging and
contribute to more resilience and growth throughout our business. Together
with the two acquisitions of the previous year in the Board & Paper
division, MM Kwidzyn and MM Kotkamills, they are part of the
transformation of MM to increase value and growth abilities of the MM
Group through acquisitions and operational optimization.
Despite an increasing market weakness in cartonboard and paper from the
end of the 3^rd quarter onwards, due to the well-stocked supply chain and
thus considerable market-related machine downtime in this area, the MM
Group recorded a strong overall increase in profit in 2022. The growth in
operating profit from EUR 269.6 million to EUR 510.3 million mainly
results from the division MM Board & Paper due to improved operations as
well as the full-year inclusion of the previous year’s acquisitions. In
contrast, the operating profit of MM Packaging decreased due to one-off
expenses despite a favorable organic growth of approximately 5 %.
In line with the good profit development and long-term dividend policy, a
dividend increase to EUR 4.20 per share (2021: EUR 3.50) for the financial
year 2022 will be proposed to the 29^th Annual Shareholders’ Meeting on
April 26, 2023.”
INCOME STATEMENT
The Group’s consolidated sales reached EUR 4,682.1 million, which is 52.5
% or EUR 1,612.4 million above the previous year’s figure (2021: EUR
3,069.7 million). On the one hand, this rise resulted from the previous
year’s acquisitions in the MM Board & Paper division as well as the
company purchases of MM Packaging in the reporting year and, on the other
hand from passing on costs through higher prices.
At EUR 510.3 million, an operating profit of EUR 240.7 million above the
previous year (2021: EUR 269.6 million) was achieved. The significant rise
is attributable to the division MM Board & Paper. One-off expenses in this
division resulted in particular from the reorganization of production at
the Slovenian cartonboard mill MM Kolicevo, which had to be recognized at
an amount of EUR 24.6 million in the 4^th quarter. In the division MM
Packaging, one-off effects mainly related to the incidental transaction
costs for Essentra Packaging and Eson Pac and the sale of the Russian
sites in the amount of EUR 15.0 million as well as expenses connected to
the exit from the Russian market totaling EUR 32.5 million contrasted with
income from the sale of the packaging sites in Russia in the amount of EUR
20.1 million. In the previous year, one-off expenses from the initial
consolidation of MM Kwidzyn and MM Kotkamills in the amount of EUR 26.3
million as well as from adjustment and restructuring measures in the
Packaging division in the amount of EUR 20.1 million had to be recognized.
This was offset by one-off income from the sale of the Eerbeek and
Baiersbronn virgin fiber-based cartonboard mills in the amount of EUR 46.1
million (after incidental transaction costs). The Group’s operating margin
therefore increased to 10.9 % (2021: 8.8 %), the return on capital
employed to 16.3 % (2021: 12.8 %). EBITDA rose by EUR 308.9 million to EUR
729.9 million (2021: EUR 421.0 million), the EBITDA margin reaching 15.6 %
(2021: 13.7 %).
Financial income amounted to EUR 4.3 million (2021: EUR 3.3 million). The
increase in financial expenses from EUR -24.4 million to EUR -32.1 million
primarily results from the issuance of Schuldschein loans and
Namensschuldverschreibungen in the previous year to finance the
acquisitions and organic growth projects. “Other financial result – net”
changed to EUR -15.5 million (2021: EUR -4.0 million), in particular owing
to foreign exchange effects.
Accordingly, profit before tax rose by EUR 222.4 million to EUR 466.9
million, after EUR 244.5 million in the previous year. Income tax expenses
totaled EUR 121.7 million (2021: EUR 53.8 million), resulting in an
effective Group tax rate of 26.1 % (2021: 22.0 %).
Profit for the year thus increased by EUR 154.5 million to EUR 345.2
million (2021: EUR 190.7 million).
DEVELOPMENT IN THE 4^TH QUARTER
The development of the 4^th quarter was characterized by a strong decline
in demand in the MM Board & Paper division due to high customer
inventories as well as by a stable demand in the MM Packaging division.
Consolidated sales of EUR 1,231.7 million were mainly price- and
acquisition-related above last year’s period (4^th quarter 2021: EUR 962.6
million).
The Group’s operating profit decreased to EUR 58.1 million (4^th quarter
2021: EUR 92.4 million) due to market conditions and one-off effects. The
operating margin totaled 4.7 % (4^th quarter 2021: 9.6 %). Profit before
tax amounted to EUR 50.1 million (4^th quarter 2021: EUR 82.1 million),
net profit for the period to EUR 30.0 million (4^th quarter 2021: EUR 62.3
million).
MM Board & Paper recorded a capacity utilization of 75 % after 97 % in the
4^th quarter of the previous year owing to necessary market-related
downtimes. Due to acquisitions, the operating profit of the division
reached EUR 62.8 million after EUR 33.4 million, whereas one-off expenses
resulting from the concentration of production on the larger machine at
the Kolicevo mill had to be recognized. The operating margin reached 10.1
% (4^th quarter 2021: 5.9 %).
With a solid volume development, the operating profit of MM Packaging
amounted to EUR -4.7 million (4^th quarter 2021: EUR 59.0 million) due to
one-off effects. In particular, expenses in connection with the exit from
the Russian market as well as structural adjustment measures led to a
negative effect on results. The operating margin was -0.7 % (4^th quarter
2021: 13.7 %).
OUTLOOK
Geopolitical and macroeconomic uncertainties continue to determine our
operating environment. While some input prices are still declining, the
destocking process has also progressed since the beginning of the year as
in the last months of the previous year. In the MM Board & Paper division,
market-related machine downtimes are necessary in the 1^st quarter. As
announced, in the first three quarters there will also be longer machine
downtimes because of major investments at the Frohnleiten, Neuss and
Kolicevo cartonboard mills. Prices are predominantly decreasing.
Therefore, as expected, a significant decline in volume and results is
foreseeable in the Board & Paper division in the current year.
In the division MM Packaging, demand has weakened slightly in the first
two months, but shows resilience. Structural adjustment and cost
optimization measures will be further pursued.
Irrespective of the transition year in the MM Board & Paper division, our
business model with a focus on sustainable packaging for everyday consumer
goods remains resilient and attractive in the long term.
The balance sheet of MM and ongoing cash generation are solid. Our
investment activity will remain evelated in 2023 in order to further
strengthen the competitiveness and growth capacity of the MM Group.
Especially in the course of the modernization of three cartonboard
machines as well as value-enhancing, technological innovations in the area
of pharmaceutical and beauty packaging, we expect a capex volume of more
than EUR 400 million this year. The objective remains to continue our
growth with sustainable and innovative consumer goods packaging in the
long term with an attractive return on capital employed.
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The press release and a video statement by the Management Board are
available on the internet under //www.mm.group.
The Annual Report 2022 will be available as of April 5, 2023.
Forthcoming Results:
April 25, 2023 Results for the 1^st quarter of 2023
For further information, please contact:
Stephan Sweerts-Sporck, Investor Relations, Mayr-Melnhof Karton AG,
Brahmsplatz 6, A-1040 Vienna, Tel.: +43 1 501 36-91180,
E-Mail: investor.relations@mm.group, Website: https://www.mm.group
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14.03.2023 CET/CEST 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: 1581345
End of News EQS News Service
1581345 14.03.2023 CET/CEST
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